8 Most Cost Effective Home Renovations

Home renovations

Homeowners renovate for many reasons — to improve the appearance of the home, its function, or to cut energy costs and save money going forward. In addition to these reasons, many homeowners renovate to increase the value of their homes, particularly if they plan to sell in the near future.

Most home renovations will increase a home’s value, but for many the increase will not cover the entire renovation cost. According to studies, different home renovations have differing returns on investment (ROI). It’s helpful to know which renovations yield the best return when making decisions for your home. Here is a list of the most cost effective home renovations for 2016, according to Remodeling’s 2016 Cost vs. Value Report.

1. Fiberglass attic insulation is the only renovation to top 100% ROI in this year’s listing. It is also one of the least costly renovations listed, which means it will not raise your home’s value by thousands of dollars, like other renovations might. However, it will lower your energy costs and help you save money year after year, making it even more cost effective than the 116.9% of cost recouped suggests.

2. Manufactured stone veneer offers the second highest ROI at 92.9% of cost recouped. Homeowners may want to add stone veneer to improve the look of their home or to better match the neighborhood (or stand out more from it). Stone veneer does not add any significant energy savings.

3. Midrange garage door replacement has an ROI of 91.5% of cost recouped, so if your garage door has stopped working properly or the seal has become worn, this could be a renovation that adds function as well as some energy savings. An upscale garage door replacement yields nearly the same ROI at 90.1%, but will cost about twice as much up front.

Home renovations
Home renovations are necessary at times.

4. Steel entry door replacement was only slightly lower than garage door replacement with a 91.1% return. Steel entry doors offer greater safety. Most entry door replacements will yield at least a small energy savings because newer doors are more airtight, so the total benefit may be greater than garage door replacement in some cases. A fiberglass door replacement has a return of 82.3%, which is still one of the higher returns listed. Fiberglass doors have a much higher cost, but will offer energy savings, which helps the ROI.

5. A minor kitchen remodel offers an 83.1% return on resale value, but if appliances are replaced with higher efficiency models, energy savings could help homeowners recoup even more of their cost. An updated kitchen is one of the best selling features of a home, according to the National Association of Realtors.

6. Replacing siding offers a 77% return, but may improve efficiency depending on materials used.

7. Vinyl window replacement provides a 73.3% return, but window replacement offers significant energy savings that will increase the amount of money recouped.

8. Roof replacement offers a similar return to replacing siding or windows — 71.7% — but has a higher initial cost.

Moonworks offers a variety of home renovations to help homeowners meet their goals and needs. Call 1-800-975-6666 for a free estimate on the renovations that will improve your home.

Leave a Reply

Your email address will not be published. Required fields are marked *