Renovations to a home are essentially an investment into the value of the home, but not every renovation will be the worth your return on investment. It’s important to make sure you’re investing your money in renovations that will pay off for you.
The last thing you want is to pay out for an expensive renovation that ends up being a huge disappointment to your wallet later on.
Below are five of the best renovations you can make to improve the value, and five renovations with the worst ROI.
Top 5 Best Home Renovations
1. Attic Insulation
It may not seem like a high priority, but attic insulation is the only renovation project that actually has a payoff. By installing fiberglass attic insulation, you save the home on heating costs and your ROI can yield up to 116%.
2. Stone Veneer
A veneer can completely change the appearance of your home, inside or outside, for a relatively low cost. Adding stone-like patterns on your walls ends up yielding up to 93% ROI.
3. Garage Door Replacement
Front-facing garage doors have a strong influence on the appeal of the home from the street. Attractive garage doors in good working order can yield 92% ROI. If you really want to impress buyers, adding smart control features to the garage doors is a good way to go.
4. Entry Door Replacement
Like the garage door, the appearance of your front door has a lot of influence on curb appeal. Replacing the entry door with a secure steel door, and maybe even some smart control features, can yield up to 91% ROI.
5. Minor Kitchen Remodel
Although this is a bigger investment than the above projects, it yields up to 83% ROI. Making some updates to your kitchen may not be a bad idea if it’s been a few decades since it’s been updated.
Top 5 Worst Home Renovations
1. Backyard Patio
Deciding to add a patio in the back is a big decision. Not only is this an expensive project, but it yields less than half of what you spend on it. This is the worst renovation you could make for your investment in 2018.
2. Master Suite Addition
Not only is a master suite addition one of the most expensive home renovations but it also has one of the worst returns on investment. The average cost of a new upscale master suite in 2018 is a quarter of a million dollars and you’ll only get 48% of that back. In a midrange home, the ROI is better, but not by much–– an average of 57% is recouped from these renovations.
3. Bathroom Addition
A bathroom addition in a midrange home may seem like a decent investment, but in 2018 it only yields up to 55% ROI. This project costs far less than a master suite addition but is still on average double the cost of a backyard patio.
4. Bathroom Remodel
Remodeling an existing bathroom in an upscale home doesn’t have much of a better ROI than adding a bathroom. At 56% ROI, it’s not really worth your while. However, midrange home bathroom remodels or universal design bathroom yields up to 70% ROI.
5. Major Kitchen Remodel
Whereas minor kitchen remodels have a decent payoff, major kitchen remodels are bad news for ROI in both midrange and upscale homes. For midrange homes, a major kitchen remodel means only about 59% ROI. Upscale homes, on average, cost double the cost of a midrange kitchen remodel and have even worse ROI at 54%.
When it comes to making renovations that will improve the value of your home and be worth your investment, smaller renovation projects are better. Additions and remodels are expensive and aren’t even worth three-quarters of what you invest in them. At the end of the day, it’s better to replace or repair than it is to remodel or add.