Which Home Improvement Projects Receive the Highest ROI?

In these tough economic times, homeowners are more concerned than ever with home improvement return on investment (ROI).  To spend home improvement dollars wisely, they must balance the cost of the project with the intrinsic value and the financial return that the project offers.  Every year, lists are published to guide homeowners in choosing the top projects that increase home values.  Most of these lists start off with kitchen remodels, but at Windows on Washington, we find that many other projects that can net a higher ROI with a lower initial investment.

Hanley Wood and Remodeling Magazine publishes a Cost vs. Value Report that describes the ROI of various projects based on the increased value of the home by geographical region.  The latest reporting shows the ROI for home improvement projects averages 57.7%, and can be as high as 89%.  We’ve listed several projects (for the Southern Atlantic Region) in which homeowners can invest that will exceed the average ROI per project and meet or exceed ROI of a kitchen remodel (62.3-75% depending on scope).

Siding Replacement

Advancements in technology and manufacturing have given homeowners several types of siding from which to choose.  Vinyl and foam backed siding should net up to 77.2% ROI, while the ROI of fiber cement siding could be as high as 89.7%.  HGTV ranks siding replacement as the #1 project to add value to a home.  New siding gives curb appeal a big boost by making a fresh first impression. In addition, carefully selected siding can improve the energy efficiency of the home, resulting in a more beautiful, comfortable and cost effective household by saving utility dollars and driving ROI even higher.

Custom Window Replacement

Custom window replacement also carries a high ROI of up to 74.3%.  In addition, replacement windows can start paying for themselves through reduced energy usage even before the home is sold (which is not calculated in the ROI figure.)  Many homeowners experience dramatic reductions in utility bills after installation, in addition to increased comfort and curb appeal.

Entry Door Replacement

The front entry door is truly the focal point of a home.  A new door can make a great impression on a guest or potential buyer, which dramatically impacts curb appeal and increases the value of your home.  Steel doors offer the highest ROI of 77.5% upon the sale of the home, but homeowners have many options from which to choose.  Many entry doors are also Energy Star Qualified, so utility dollars literally stop going out the front door.

Roof Replacement

When a home is being sold, the number one item that a home inspector will assess is the roof.  Even if the roof has some lifespan left in it, many home purchasers will negotiate for a reduction in sale price to compensate for any perceived future maintenance or replacement costs.   When you invest in a new roof, it makes a lasting impression.  When homes with recent roof replacements are sold, homeowners can expect a ROI of up to 64.8%.

Garage Door Replacement

When a homeowner invests in new garage doors, guests and potential buyers have the impression that the home is well cared for.  The spike in curb appeal suggests that the homeowner has also invested in other details throughout the home.  For this reason, garage door replacement can net up to 78.6% ROI when the home is sold.   

Windows on Washington offers an array of services that include: custom replacement windows, entry and garage doors, siding and roof replacement. If you are ready to enjoy the benefits of these home improvement projects, knowing that each has a solid ROI, contact our experts at Windows on Washington, your HiMark and Okna Northern Va and Maryland Dealer.

20 Ways to Add Value to Your Home. (n.d.). Retrieved from http://www.hgtv.com/real-estate/20-ways-to-add-value-to-your-home/pictures/index.html.

Alfano, Sal. (2011, November 4). Remodeling Cost vs. Value Report 2011-12. Retrieved from http://www.remodeling.hw.net/remodeling-market-data/about-the-report.aspx/.