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Image: SondraP / iStock
A home is often the largest investment a person will make in their lifetime―but it’s not a hands-off investment. Failing to make improvements to your home could cost you when it comes time to sell. Zonda Media’s 36th annual Cost vs. Value report polled over 6,000 Realtors to determine the total value renovations add to the sale price of a home. Here are the top five most worthwhile home remodeling projects:
HVAC Conversion Takes the Lead
The renovation that saw the highest return on investment, recouping 103.5% of its initial investment, is HVAC conversion and electrification. Traditional oil and gas furnaces can be expensive to run and provide concerns about energy independence. Electric heat pumps, which provide both heating and cooling, are growing popular. Energy Information Administration data shows that electricity is now the largest residential energy source, surpassing natural gas. Buyers will view heat pumps as a way to save money, making HVAC conversion a smart investment.
Curb Appeal Projects Are a Win
The four remaining home renovation projects have one thing in common: They are all exterior projects. Garage door replacement recouped 102.7% of its initial investment. Installation of manufactured stone veneer recouped 102.3%. Replacing an entry door recouped 100.9% of its initial investment. Vinyl siding replacement almost recovered the initial investment, recouping 94.7%.
The common trend here is easily explained: First impressions count. If the exterior of a home is unkept, buyers tend to view the rest of the property negatively, no matter how beautiful the interior. If, however, the outside of a home looks well cared for, buyers enter the home with a positive mindset, increasing the chances of a sale and a higher price.
Spend Renovation Dollars Wisely
When looking to increase the value of your home, prioritize spending. An HVAC conversion can be upward of $17,000. Adding manufactured stone veneer to the exterior of a home can cost over $10,000, and replacing older siding with new vinyl can run over $16,000.
There are two cost-effective renovations in the top five from the "Cost vs. Value" report: Replacing a garage door can cost around $4,000, and a new steel front-entry door can be installed for as little as $2,200, proving you don’t need to spend a fortune to see a return on your investment.
To find out more about the 2023 “Cost vs. Value” report, visit www.costvsvalue.com.
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