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Home Improvements That Will Get You The Highest Return On Investment This Year

On average, projects on this report earned back 64.3 cents on the dollar in resale value.  This is known as the ROI or return on investment which, if you’re a little rusty on investment terms, translates to “the amount of return on an investment relative to the investment’s cost.

Here are the top five home mid-range cost improvement projects with the highest ROI:

  1. Attic Insulation (Fiberglass) 
    107.7% ROI
    Average Cost: $1,343
    Average Resale Value: $1,446

  2. Entry Door Replacement (steel) 
    90.7% ROI
    Average Cost: $1,413
    Average Resale Value: $1,282
  3. Manufactured Stone Veneer
    89.4% ROI
    Average Cost: $7,851
    Average Resale Value: $7,019
  4. Minor Kitchen Remodel 
    80.2% ROI
    Average Cost: $20,830
    Average Resale Value: $16,699
  5. Garage Door Replacement 
    76.9% ROI
    Average Cost: $1,749
    Average Resale Value: $1,345

The top five expensive projects with the greatest ROI are:

  1. Garage Door Replacement 
    85.0% ROI
    Average Cost: $3,304
    Average Resale Value: $2,810
  2. Entry Door Replacement (fiberglass) 
    77.8% ROI
    Average Cost: $3,276
    Average Resale Value: $2,550
  3. Window Replacement (vinyl) 
    73.9% ROI
    Average Cost: $15,282
    Average Resale Value: $11,286
  4. Window Replacement (wood) 
    73.0% ROI
    Average Cost: $18,759
    Average Resale Value: $13,691
  5. Grand Entrance (fiberglass)
    70.1% ROI
    Average Cost: $8,358
    Average Resale Value: $5,855

Overall the Pacific division saw an average payback of 78.2 percent for all projects, with 10 projects earning back at least 90 percent of their cost. The East North Central states, however, saw just a 54.9 return with no single project offering more than 80 cents back on the dollar.

So now that you know the best projects to invest in, here are the worst. These improvements aren’t usually in demand by the market. The lowest ROI projects in the midrange cost category are:

  1. Bathroom Remodel 
    64.8% ROI
    Average Cost: $18,546
    Average Resale Value: $12,024
  2. Master Suite Addition 
    64.8% ROI
    Average Cost: $119,533
    Average Resale Value: $77,506
  3. Backyard Patio 
    54.9% ROI
    Average Cost: $51,985
    Average Resale Value: $28,546
  4. Backup Power Generator 
    54.0% ROI
    Average Cost: $12,860
    Average Resale Value: $6,940
  5. Bathroom Addition 
    53.9% ROI
    Average Cost: $43,232
    Average Resale Value: $23,283

The five expensive projects with the worst ROI are:

  1. Major Kitchen Remodel 
    61.9% ROI
    Average Cost: $122,991
    Average Resale Value: $76,149
  2. Master Suite Addition 
    59.9% ROI
    Average Cost: $250,687
    Average Resale Value: $150,140
  3. Bathroom Remodel 
    59.1% ROI
    Average Cost: $59,979
    Average Resale Value: $35,456
  4. Bathroom Addition 
    57.1% ROI
    Average Cost: $81,515
    Average Resale Value: $46,507
  5. Deck Addition (composite) 
    56.4% ROI
    Average Cost: $39,339
    Average Resale Value: $22,171

If you don't want to do any remodeling, check out the new construction for sale.

*Information via Remodeling Magazine. The 2017 Cost vs. Value Report compares, across 99 markets, the average cost of 29 popular remodeling projects with their average value at resale one year later. Average resale value is calculated based on estimates provided by real estate professionals. 

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