Over the past few years, with the pandemic, and in particular the supply chain issues that have affected both the cost and availability of materials for new build construction homes, more people than ever have been buying older, existing homes. Additionally, with the unprecedentedly hot housing market, many people are considering striking while the iron is hot and listing their own homes for sale, but not without first making some upgrades or updates to their homes.
The 2022 Cost vs. Value Report is a unique assessment that addresses what value a particular remodeling project can add to the sale price of a home. This report takes the national averages of the cost to complete the renovation, the amount it adds to the home’s resale value, and the percentage of the cost recouped. They rank the top 22 projects according to the cost-benefit.
Whether you are looking to buy or sell, knowing that home renovations will likely be part of the process is something important to keep in mind. In particular, according to Bankrate, there are six renovations that make the most sense and add the most value to your home.
Surprisingly, coming in at the number one spot is garage door replacement. On average this project costs around $4,000. Not only is this a huge curb-appeal enhancer, but also these days more and more people want garage doors with smart wireless features.
Manufactured Stone Veneer
Coming in as the runner-up for the best-valued home renovation is another exterior improvement. Not only can a stone veneer upgrade the look of your outdoor entryway or home exterior, but this project also recoups nearly all of its average $11,000 cost with 91% recouped at the time of sale.
Minor Kitchen Remodel
This renovation is actually the only one on the top six list that is done on the home’s interior. Perhaps you have heard the adage, “Kitchens sell homes.” Maybe they do or maybe they don’t, but keep in mind that you will get the most bang for your buck by keeping the improvements mostly cosmetic. Coming in at just over $28,000, the main places to focus on in the kitchen should be updating or upgrading cabinetry, countertops, flooring, and paint. While appliances are not just cosmetic as they require plumbing and electric intervention, they also are high on the list of what buyers are looking for when it comes to utility and efficiency in the kitchen.
Fourth on this list is exterior siding. In this assessment, siding was broken down into two categories: fiber cement, averaging around $22,000 to replace and vinyl, averaging around $18,000. Even if a home is structurally sound and well built, old or worn-out siding can give the impression that the home is tired, outdated, or in need of repair. Therefore, updating siding with quality materials is an important consideration for those in the market to update or upgrade.
If kitchens sell houses, then consider that the windows are the eyes or soul of the home. Like siding, there are a variety of choices in window materials. The average range runs from around $20,000 to replace vinyl windows and around $24,000 to replace wood windows. The decision can come down to style, as more traditional or older homes may best be maintained with wood windows, whereas the pull for energy-saving windows might win out for other consumers.
The final renovation on the top six list for the Cost vs. Value Report includes deck additions. The average cost to remodel a new deck ranges from $19,000 to $24,000 depending again on materials. Wood decks, which require more maintenance and upkeep, are on the less expensive end while composite materials cost more but offer benefits of durability over the long term.