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:
-
Attic Insulation (Fiberglass)
107.7% ROI
Average Cost: $1,343
Average Resale Value: $1,446 - Entry Door Replacement (steel)
90.7% ROI
Average Cost: $1,413
Average Resale Value: $1,282 - Manufactured Stone Veneer
89.4% ROI
Average Cost: $7,851
Average Resale Value: $7,019 - Minor Kitchen Remodel
80.2% ROI
Average Cost: $20,830
Average Resale Value: $16,699 - 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:
- Garage Door Replacement
85.0% ROI
Average Cost: $3,304
Average Resale Value: $2,810 - Entry Door Replacement (fiberglass)
77.8% ROI
Average Cost: $3,276
Average Resale Value: $2,550 - Window Replacement (vinyl)
73.9% ROI
Average Cost: $15,282
Average Resale Value: $11,286 - Window Replacement (wood)
73.0% ROI
Average Cost: $18,759
Average Resale Value: $13,691 - 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:
- Bathroom Remodel
64.8% ROI
Average Cost: $18,546
Average Resale Value: $12,024 - Master Suite Addition
64.8% ROI
Average Cost: $119,533
Average Resale Value: $77,506 - Backyard Patio
54.9% ROI
Average Cost: $51,985
Average Resale Value: $28,546 - Backup Power Generator
54.0% ROI
Average Cost: $12,860
Average Resale Value: $6,940 - Bathroom Addition
53.9% ROI
Average Cost: $43,232
Average Resale Value: $23,283
The five expensive projects with the worst ROI are:
- Major Kitchen Remodel
61.9% ROI
Average Cost: $122,991
Average Resale Value: $76,149 - Master Suite Addition
59.9% ROI
Average Cost: $250,687
Average Resale Value: $150,140 - Bathroom Remodel
59.1% ROI
Average Cost: $59,979
Average Resale Value: $35,456 - Bathroom Addition
57.1% ROI
Average Cost: $81,515
Average Resale Value: $46,507 - 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.