Exterior Home Improvements Yield Higher ROI for Less Money
Renovation season is approaching. What home improvements will give you the best return for your money? Here’s a hint: step outside.
You might assume upgrades to interior spaces like kitchens and bathrooms have the best payoff, but most home improvements don’t return 100 percent of their value when resale. Generally, exterior improvements yield the best return on investment for the most modest costs.
Interior projects like a minor kitchen renovation or bathroom upgrade return a decent percentage of your initial investment when you sell your home – about 80 percent and 65 percent, respectively, according to Remodeling’s Cost vs. Value report. However, they can also cost tens of thousands of dollars.
By contrast, exterior projects like adding a deck or replacing a garage door deliver similar high rates of return but for far less cost. Six of the eight improvements with the best ROI on Remodeling’s report were exterior projects, and their average payback was nearly 75 percent.
Here are popular exterior projects that offer high ROI:
Roof replacement
A mid-range roof replacement returns nearly 69 percent of the investment. Moreover, a new roof helps protect your entire home from weather damage and can improve curb appeal.
Composite deck addition
Costs vary, but adding a composite deck delivers an ROI of 65.2 percent. Of course, the value of your deck will depend on many factors, including the quality of the building products you choose.
Siding replacement
Another exterior feature that protects the whole home dramatically affects its curb appeal. That new siding could recoup about 76 percent of your initial investment when you sell your home.
Garage door replacement
Older garage doors may lack modern insulating qualities, and a shabby-looking door can drag down the look of your home. Replacing the garage door returns nearly 77 percent of that amount at resale.
Steel entry door
The single exterior home improvement with the greatest ROI is also one of the cheapest and easiest to do. Replacing a wooden door with a steel entry door will cost about $1,400; you’ll recoup more than 90 percent of that cost when you sell your home.
Exterior home improvements enhance your enjoyment of your home and help maintain its security; they’re also the first things potential buyers see when they pull up to the curb. When you want to make cost-effective, high-ROI improvements, making exterior upgrades is money well spent.
