Experts say a kitchen sells a house, but the number one renovation that will bring the best bucks in 2016 has nothing to do with a kitchen. According to Remodeling magazine’s “2016 Cost vs. Value Report,” adding fiberglass attic insulation can give you back as much as 116.9% on what you spend. This is based on a 35×30 attic, paying $1,268 for materials. (http://www.remodeling.hw.net/cost-vs-value/2016/trends)
Next best in the ROI line is adding stone veneer to the exterior, offering 92.9%
3. Replacing the garage door with a midscale door (91.5%)
4. Replacing the old front door with a steel entry door (91.1%)
5. Upgrading the garage door to one that’s high end. Depending on materials used, these three renovations could cost less than $3,200 each (90.1%)
Now for the bad news. While having another bathroom will help when you cannot wait, the same renovation provides the least amount of return financially. If the job costs $42,233, you can expect to get $23,727 of that, or a 56.2% ROI.
Second in line is doing an upscale renovation to the bathroom addition. Although you might spend thousands more, you can expect to get only a .5% increase in your investment if you sell your house this year.
3. Upscale master suite addition (57.2%)
4. Remodeling your current bathroom (57.5%)
5. Adding a deck of composite materials (57.7%)
The Truth About Home Renovation Projects
Contrary to many homeowners’ expectations, extensive home renovation projects don’t necessarily increase the net value of a home. In fact, Select Homes Lead Listing Agent Brian Brundage says, “It’s a huge misconception among homeowners that costly renovations will pay off at closing time. As the data shows, in the vast majority of cases, these projects don’t yield a return.”
So if you’re a homeowner trying to improve the value of your home before selling it, what are you to do? Brundage says there’s still hope. “It sounds simple, but the three most influential things you can update are the carpet, the paint, and the light fixtures. These are affordable improvements that can have a surprising impact at closing,” Brundage says.
To see a full list of the simple things you can do to prepare your home to sell, check out our “101 Ways to Prep Your Home to Sell” guide. With selling season just around the corner, now is also a great time to schedule a free home staging consultation with one of our listing agents. This will help identify exactly what needs to happen to get your house ready to sell—for maximum value.