This is the worlds leading source of financial content on the web, ranging from market news to retirement strategies, investing education to insights from advisors.
Forex Forever!

5 Home Remodels That Increase Resale Price

Author: Matthew Smith

If you're considering improvements to your home this winter, first consider which will pay the most back when you sell the home down the road. (See: Selling Your House? Avoid These Mistakes.) Remodeling Magazine recently released its 2015 Cost vs. Value Report, which outlines the 35 most popular home additions, remodels and replacements in 101 U.S. cities. Its recommendations will help you determine which projects will yield the greatest return on your home improvement investment: (For related reading, see: Five Ways To Make Your Home Remodel Pay Off.)

Image 1: Photo courtesy of Meyer Windows, Doors and More

1) Front door replacement

One of the most surprising replacements topping the list was steel entry doors. Homeowners who replaced their existing wood entry doors with steel saw a 101.8% return on investment during resale. Steel doors can be made hollow or solid, as well as soundproof and fireproof. They also come in a range of colors in addition to the default silver, which can be matched to any color scheme in a variety of paint grades.

2) Installing manufactured stone veneer

A new addition to the Cost vs. Value list this year is manufactured stone veneer, which yielded a 92.2% return on investment. Stone veneer mimics the look of natural stone or brick for a fraction of the cost. It is useful in many areas of the home and can be used to treat siding, fireplace mantels and bathtub enclosures, among other things. It is most often used in the fabrication of siding or fireplace overlays to create an old-fashioned masonry appearance.

Image 2: Photo courtesy of All Star Garage Door, Inc

3) Replacing the garage door

Homeowners also saw a high return on investment when they replaced their garage doors. Garage door replacements yielded an 88.4% return on investment, up more than 4% from last year. Replacement increases the value of the home from a curb appeal perspective -- especially if the doors are upgraded from manual to automatic. Options to choose from include doors made of wood, metal, glass or plastic. Doors also come in a variety of designs and colors, which can be matched to the garage and home exterior. The average national cost for a new garage door is $1,100.

4) Replacing the siding

Sellers who replaced old siding with new vinyl siding saw an 80.7% return on their investment, according to this year's data. The cost to install siding varies, but it can make or break a sale. If siding looks dilapidated or is peeling off, it significantly decreases the offer a buyer will make on the home. Vinyl siding mimics the look of wooden clapboard and varies in thickness, which allows for higher resistance, flexibility and durability.

5) Adding a deck

A new deck, while a major landscape addition, will certainly attract buyers. Wood deck additions yielded homeowners an 80.5% return on investment. The average cost of building a deck is $7,800, depending on materials and square footage. Wood deck additions have the combined ability to allow for additional entertaining or relaxation space while blending in well with the natural landscape of the backyard. Depending on their size and material, they can hold grills, tables, chairs, a hot tub or sauna, and potted plants.

The Bottom Line

Every improvement that is done to your home presents an opportunity to reap a return on investment. A homeowner who remembers that resale of his or her home is a possibility will keep these tips in mind to ensure not only that these improvements yield satisfaction and comfort at the present time, but that, in the event that the home is sold, the effort to add value to the house was a profitable move.

Disclaimer: The opinions expressed are those of Andrea Davis of Home Advisor and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. This material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

Investopedia and Home Advisor have or may have had an advertising relationship, either directly or indirectly. This post is not paid for or sponsored by Home Advisor, and is separate from any advertising partnership that may exist between the companies. The views reflected within are solely those of Home Advisor and their Authors.

← back
last five articles

#112 Obamacare Penalty Enforcement: How It Works

Author: Jacob Smith

We're only days away from a deadline (January 31, 2016) that could cost you a lot of money if you're not in compliance. You may have missed hearing about it on the news, but it's vitally important that you address it. It's the date when open enrollment through the Health Insurance Marketplace for... see more

#183 Understand Permanent Life Insurance Illustrations

Author: Jacob Harris

Selecting a permanent life insurance policy can be confusing. Insurers offer a wide variety of life insurance policies including whole, universal and variable life policies (read more about types of policies in "Intro to Insurance: Types of Life Insurance"). Once you decide on the permanent life ... see more

#226 The Average Cost of Dental Insurance in America

Author: Michael Smith

According to a report by the National Association of Dental Plans and Delta Dental Plans Association, approximately 205 million Americans, roughly 64% of the population, had dental insurance coverage at the end of 2014.Most people get their coverage from an employer or organizational group... see more

#298 How The Target Credit Card Works

Author: Matthew Davis

Store credit cards are the object of much criticism. Because of Target's 2014 data breach, signing up for its credit card might come with a fair amount of skepticism on anybody's part. But the data breach can happen to any store if you believe the experts. Is the Target REDCard worth a place in y... see more

#308 The Pros And Cons Of A 15-Year Mortgage

Author: Jacob Taylor

Few borrowers seek a 15-year mortgage when they're buying a home. In February 2015, according to the Mortgage Bankers Association, only 5% of home buyers and 20% of refinancers applied for a 15-year mortgage, and these numbers have been falling in recent years. But if borrowers are put off by the... see more