What Home Projects Have the Best Return?
By Chris Petry
People often speculate about what home improvement projects might increase their resale value, delivering them the best return on their investment. Fortunately, you’re probably right no matter where your mind goes when prompted with that question. News windows and doors, updated kitchens and bathrooms and the conversion of traditional storage spaces like basements and attics into additional living space, all have the potential to elevate your home’s appeal and increase its monetary value.
Referring you to this article over on NAR (National Association of REALTORS), you’ll see a handy dandy chart including some of the above-mentioned home improvement projects (as well as others) and the reported return on investment percentage. For the purpose of time, we’re going to run through only the Top Five.
Right at the top of that chart is “New steel door installation” which reports a 100% return on your investment. Now, not being the world’s most accomplished mathematics student, I can’t say for certain whether that’s a great return… oh wait, yes, I can! It’s 100%! Even an algorithmically-challenged investment slacker like me can tell you it’s worth your time to install a steel door if you’re contemplating selling. Want to take things to the next level? Make it black. Zillow reports that, depending on the study, black doors can command over $6,000 more on a resale than any other color. I wondered where all the Goth kids went when the local Hot Topic shuttered. Turns out they’re in the housing market!
What’s #2 on the chart? Closet Renovation. No surprise. This piece on Forbes, from late 2023, does a great job at hammering home the importance of a roomy closet to homebuyers. I found one quoted REALTOR’s observation particularly interesting and not all that surprising. If a closet is loaded down with stuff when prospective buyers visit or even look at it online via photos and video, it can give them a false impression of the actual scale. A closet filled with clothes and shoes or, worse, STUFF simply looks smaller. If a closet is average to above average in size, you might increase interest by simply organizing it, better yet emptying it, and painting. If the closet is smaller, it’s worth considering an extension. Provided you have available wall space to do so. A spacious closet is also an appeal to the overall design of your home. To a potential buyer, a tiny closet is just a hint at addition deficiencies in the grander layout. Closet lighting can be hugely important as well. So, speak to a licensed electrician, if need be, to help brighten things up a bit. Could be an 83% return on investment, by the way.
How about #3? With a reported 80% return on your investment, it’s… a new fiberglass front door! Yes, front door replacement takes both the first and third slot on NAR’s project return graph. Reading that got me thing, why is fiberglass a full 20% drop in ROI when compared to a steel door? So, I visited the Google and punched in my inquiry. I came across this article which reports that… get this… steel doors are, on average, cheaper to purchase! That’s not at all what I expected but it does explain why the return on investment is greater. It’s a lower upfront cost. So, what’s the different in the composition of the two doors and why would someone choose one over the other? A fiberglass door may scratch or chip but it’ll never dent or rust! A steel door may dent or rust but it’ll never scratch and it’s completely unaffected by sun exposure. Also, a steel door is slightly heavier but that doesn’t make the fiberglass door any less safe. What should you buy? Don’t ask me, it’s your house!
Windows take the #4 and #5 slots, of course. #4 is new vinyl windows and #5 is new wood windows with 74 and 71% returns, respectively. Time for another comparison! Vinyl windows require less maintenance but lack the charm and visual appeal of wooden windows. I could probably go on but that’s really the deciding factor between the two. If you value the aesthetic quality of wood windows, they’re a still a great option but they will require more frequent attention. Vinyl requires less effort to maintain but it’s just so… modern and lacking of character. In the end, the choice is up to the seller. Though, I will refer you to the reported 3% difference in return on invesment. Which would indicate that buyers prefer vinyl by a slim margin, probably because they’d prefer to spend less of their time tending to the windows. Which doesn’t mean they get out of washing them. Until robot windows take over, that’ll be the responsibility of homeowners everywhere, regardless of their windows’ composition.
Are you planning on selling your home in the near future? Perhaps it’s worth considering some of what you read above. Plan on buying soon? Well, don’t let the stats make up your mind for you. After all, beauty is in the eye of the beholder. No matter what, now you’ll have just a few more things to consider. Yeah, I know, your mind was already overwhelmed! Not sure what the return on investment for that is.
