Stretch Your Dollar: Best (and Worst) Renovation Projects to Add Value
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Stretch Your Dollar: Best (and Worst) Renovation Projects to Add Value

Remodeling projects

From new siding and a big backyard deck to a kitchen overhaul and master bathroom redesign, investors may be surprised to learn what projects boost their returns and what renovations may be worth skipping.

Investors that are hoping to efficiently add value to their properties have a plethora of remodeling possibilities — and a seemingly equal number of pitfall projects — from which to choose.

From new siding and a big backyard deck to a kitchen overhaul and master bathroom redesign, investors may be surprised to learn what projects boost their returns and what renovations may be worth skipping.

In its annual analysis of the cost versus the value of various renovation projects, Remodeling Magazine found that, across the board, investors and homeowners are earning bigger returns for every remodeling project.

“All projects covered in the report show an increase in value over the previous year, as reported by real-estate professionals in 136 metro areas,” Remodeling Magazine wrote. “But costs have correspondingly increased — and in some cases, the increases are significant, likely due to tariffs that have roiled commodity markets. This has led to slight downturns in the percentage of costs recouped for a number of projects, but overall returns are up slightly compared to last year.”

Remodeling Magazine also notes a marginal increase in the year-over-year percentage change for upscale projects. The changes in the percentage of costs returned from upscale projects have increased at a greater rate when compared to more modest replacement projects, which suggests that buyers of existing homes are more willing to splurge, the report notes.

Regardless of the project’s cost and value, investors are better off earmarking their remodeling dollars according to their own property’s needs. Additionally, as Remodeling Magazine notes, the dollars recouped from a particular project can vary based on the home’s region and the market’s preferences.

To draft its report, Remodeling Magazine aggregated resale value data for each project from estimates provided by more than 4,600 real estate professionals. Construction and material cost estimates were generated by RemodelMAX.

To learn more, check out the 7 best and 7 worst projects for costs recouped, according to national data from Remodeling Magazine’s Cost Vs. Value report.

7 Best Remodel Projects for Investors on Average

  1. Garage door replacement — Job Cost: $3,611 Resale Value: $3,520 Cost Recouped: 97.5 percent
  2. Manufactured stone veneer — Job Cost: $8,907 Resale Value: $8,449 Cost Recouped: 94.9 percent
  3. Minor kitchen remodel —Job Cost: $22,507 Resale Value: $18,123 Cost Recouped: 80.5 percent
  4. Deck addition (wood) — Job Cost: $13,333 Resale Value: $10,083 Cost Recouped: 75.6 percent
  5. Siding replacement — Job Cost: $16,036 Resale Value: $12,119 Cost Recouped: 75.6 percent
  6. Entry door replacement (steel) —Job Cost: $1,826 Resale Value: $1,368 Cost Recouped: 74.9 percent
  7. Window replacement (vinyl) — Job Cost: $16,802 Resale Value: $12,332 Cost Recouped: 73.4 percent

7 Worst Remodel Projects for Investors on Average

  1. Upscale master suite addition —Job Cost: $271,470 Resale Value: $136,820 Cost Recouped: 50.4 percent
  2. Backyard patio — Job Cost: $56,906 Resale Value: $31,430 Cost Recouped: 55.2 percent
  3. Upscale bathroom addition — Job Cost: $87,704 Resale Value: $51,000 Cost Recouped: 58.1 percent
  4. Midrange master Suite addition — Job Cost: $130,510 Resale Value: $78,524 Cost Recouped: 59.4 percent
  5. Bathroom remodel — Job Cost: $64,743 Resale Value: $38,952 Cost Recouped: 60.2 percent
  6. Midrange bathroom addition —Job Cost: $47,427 Resale Value: $28,726 Cost Recouped: 60.6 percent
  7. Roof replacement (metal) — Job Cost: $38,600 Resale Value: $23,526 Cost Recouped: 60.9 percent

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