6 Remodeling Projects for the Best ROI on Home Improvements

When it comes to the best ROI on home improvements, you must choose projects that enhance your living space and offer significant returns. 

It’s about balancing aesthetic appeal with functional upgrades that enhance your home’s market value. 

This blog will guide you through the top projects that offer the best returns, backed by the latest home improvement industry statistics.

Keep in mind that these statistics are based on national averages, and ROI (return on investment) can vary by region or city.

Let’s get started with some commonly asked questions.

What are the Hidden Benefits of Home Remodeling?

Home remodeling’s benefits extend beyond surface-level enhancements. 

For instance, energy-efficient upgrades like installing double-paned windows or upgrading insulation can significantly reduce energy bills. 

Remodeling projects can also improve the overall functionality of your living space, adapting it to changing family needs or personal preferences.

Is it Worth it to Remodel Your House?

Absolutely! Strategic remodeling, especially in key areas like kitchens and bathrooms, can significantly boost your home’s resale value. 

When executed thoughtfully, remodeling can be an investment with the potential for substantial returns.

How Do I Decide How Much to Invest in Remodeling My House?

Determining your remodeling budget involves assessing your home’s current value and the typical ROI of the projects you’re considering. 

Generally, investing 5-15% of your home’s value in remodeling can yield significant returns. 

However, this value should be tailored based on the specific projects you choose and the unique aspects of your local real estate market.

What Specific Home Improvements Have the Best ROI?

1. Energy-Efficient Upgrades 

Energy-efficient home upgrades are becoming increasingly popular due to their environmental and financial benefits. 

These upgrades range from installing solar panels and smart thermostats to more extensive projects like HVAC conversion or electrification. 

Homes with energy-efficient upgrades are increasingly sought after in the real estate market. They align with modern sustainability trends and offer substantial savings in utility bills. 

HVAC Conversion/Electrification

This project involves upgrading the home’s heating, ventilation, and air conditioning (HVAC) system to more energy-efficient and environmentally friendly options. 

The average cost of this upgrade is around $17,747, but it offers an impressive return of 103.5% upon resale.

2. Garage Door Replacement

This project is not just about functionality but also significantly enhances a home’s aesthetic appeal.

With an average cost of around $4,302, it’s considered a relatively affordable project compared to other home improvement projects.

On average, it can recoup 102.7% of its investment.

Because of its impact on curb appeal, a new garage door can increase the overall value of your home, making it more attractive to potential buyers.

3. Manufactured Stone Veneer

Manufactured stone veneer is a decorative building material designed to replicate the look of natural stone. This veneer is typically made from concrete and other materials.

It’s molded and colored to mimic natural stone’s texture and color variations. It’s lighter and often more cost-effective than real stone, making it a popular choice for home improvement projects.

On average, manufactured stone veneer installation costs around $10,925, with an ROI of 102.3%.

For every $100 spent on this project, homeowners can expect a return of approximately $102.30 when they sell their home.

4. Bathroom Remodel 

Bathroom remodels are among the most popular home improvement projects because they significantly enhance a home’s appeal and value. 

They can range from minor updates to major overhauls, each varying in cost, scope, and return on investment (ROI).

Minor Bathroom Remodel

A minor bathroom remodel focuses on making cosmetic changes rather than altering the bathroom’s layout or size.

The average ROI for a minor bathroom remodel is 102%. This indicates that for every $100 spent, homeowners can expect a return of about $102 when selling the property.

Minor bathroom remodels are less expensive than complete overhauls and typically have shorter completion times.

Major Bathroom Remodel

Major bathroom remodels involve more extensive changes, often altering the layout, expanding the space, or installing high-end fixtures and finishes.

They can include installing new bathtubs, showers, sinks, toilets, and possibly changing the layout.

Major bathroom remodels have an average ROI of around 93.2%.

While the ROI is slightly lower than minor remodels, major renovations can significantly increase the value of a home, especially in upscale markets.

5. Siding Replacement

Replacing siding on a house is a significant project that can dramatically alter exterior appearance and improve structural integrity. 

Various siding materials are available, but vinyl and fiber cement are two popular options. Each has its own cost, aesthetic appeal, and ROI.

Vinyl Siding Replacement

Vinyl siding is a widely used material for home exteriors, known for its durability, affordability, and low maintenance.

The average cost of replacing siding with vinyl is around $16,348. 

This investment typically offers a 94.7% return. It recoups a significant portion of the cost when the home is sold.

Fiber-Cement Siding Replacement

Fiber-cement siding is a composite material known for its resilience and the aesthetic appeal of a more natural look. 

It’s ideal for homeowners who prefer a more upscale, durable siding material.

The average job cost for fiber-cement siding is about $19,361, with an ROI of 88.5%. 

While this is a higher investment than vinyl, it still brings back a significant portion of the cost.

6. Minor Kitchen Remodel

A minor kitchen remodel is a targeted approach to refreshing the kitchen’s look without undertaking a full-scale renovation. 

This type of remodel focuses primarily on cosmetic updates, such as installing new countertops and cabinetry.

It offers a significant transformation with relatively less disruption and expense.

The average ROI for a minor kitchen remodel is an impressive 98.5%.

How Can I Maximize the ROI on My Home Remodeling Project?

When undertaking home remodeling projects, it’s crucial to strategically plan and execute improvements to ensure maximum ROI.

Start by understanding current market trends and local real estate dynamics.

For instance, ROI for the same remodeling project can vary greatly depending on the location.

Research local data to understand what kind of returns you can expect in your city or region.

Then, make smart choices about where to allocate funds to significantly impact the profitability of your remodeling efforts.

What are the Biggest Mistakes to Avoid When Remodeling for ROI?

When remodeling for ROI with plans to sell, avoid over-personalizing the space, as unique tastes may not resonate with potential buyers. 

Neutral, broadly appealing renovations are more likely to attract a wider audience. 

Additionally, don’t overlook essential repairs and maintenance, as these can significantly detract from your home’s appeal. Prioritize functionality and condition over purely cosmetic enhancements. 

It’s also crucial to align your renovations with current market demands and avoid excessive spending on upgrades that don’t match the home’s overall value. 

Consulting with real estate professionals can provide valuable insights into what renovations most benefit your market.

How Can I Find a Qualified Contractor for My Home Remodeling Project?

Finding the right contractor is pivotal. Researching and reading online reviews is a great starting point. 

A qualified contractor will guide you through the process and help you make decisions that align with your goals and increase your home’s value.

For instance, at Strong Wall, we specialize in various remodeling services, including kitchen and bathroom remodels, tailored to enhance a home’s appeal and value. 

We understand how vital it is for homeowners to make profitable decisions when remodeling, and we guide them every step of the way.

If you want to learn more about how Strong Wall can help with your next home remodeling project, you can talk to an expert today.