Home Improvement Projects Rate of Return on Investment
By: Danny Lipford
Thinking about adding a deck or revamping the kitchen so you can up the price of your home before you sell? You might want to crunch the 2010-11 Cost vs. Value numbers, complied by Remodeling magazine, before you do.
Projects with highest return on investment
- Replacing entry door with steel door (102%)
- Garage door replacement (84%)
- Adding a wood deck (73%)
- Minor kitchen remodel (73%)
- Vinyl siding replacement (72%)
- Wood window replacement (72%)
- Attic bedroom addition (72%)
Project with lowest rate of return on investment
- Home office remodel (46%)
- Sunroom addition (49%)
- Bathroom addition (53%)
- Garage addition (59%)
The data includes national and regional averages on over 20 common home improvement projects ranging from kitchens and baths to roofs and decks. Data for both midrange and upscale projects is provided on:
- Average cost of project.
- Added resale value.
- Percentage of investment recouped.
- Change from last year’s report.
Bottom line: The above numbers assume you’re hiring out the labor on the project. If it’s a DIY project, and do a good job, the rate of return on your investment will be higher. Unless you plan on doing the work yourself, or not doing the project makes your house undesirable or unsellable, most home improvement projects will return less from your investment than you put in, so you might want to consider staying in your home a while to enjoy the results of your improved home!