Thinking about adding a deck or remodeling your kitchen to increase the value of your home? Check out Remodeling magazine’s 2014 Cost vs. Value stats to see which projects add the most return on your investment before you do.
All the home improvement project on their list returned less than 100% of the money invested when the work is hired out, so it’s important that the improvement is either something you and your family will enjoy (like a new deck) or that is needed to maintain your house (such as a new roof).
Below are the projects that provided the highest and lowest return on investment, along with the average cost of the project if the job is hired out.
So, for example if you spent $10,000 on a new deck, it would add about 87% ($8,700) to the value of your home. As the improvement ages over time, the value would depreciate as well.
Home improvement projects with highest return on investment:
- Replace entry door with prefinished steel door (97% return, cost: $1,162)
- Add wooden deck (87% return, cost: $9,539)
- Replace siding with fiber cement siding (87% return, cost: $13,378)
- Convert attic space into bedroom addition (84% return, cost: $49,439)
- Replace garage door using existing opener (84% return, cost: $1,534)
- Minor kitchen remodel (83% return, cost: $18,856)
- Replace windows with clad, wood windows (79% return, cost: $10,926)
Home improvement projects with lowest return on investment:
- Convert room into home office (49% return, cost: $28,000)
- Add sunroom addition (52% return, cost: $73,546)
NOTE: The above numbers are for home improvements with the labor hired out for the project. The rate of return on investment for a DIY project where you do the work yourself will be higher, assuming you do a good job!