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Cost vs. Value: The Home Improvement Projects With the Highest ROI in 2019
By Jameson Doris
RISMEDIA, Friday, February 01, 2019— Remodelers across the country took a hit last summer as the cost of building materials spiked dramatically, and the picture for 2019 isn't much rosier. The percentage of return on investment (ROI) is projected to trend downward for all the replacement projects listed in Remodeling magazine's newly-released Cost vs. Value Report.
 
Larger indoor remodel projects took a hit as well, but weren't impacted as greatly as replacement projects as they rely more on labor costs rather than material costs.
 
"With the increasing costs of building materials and labor, we urge remodelers to think like real estate professionals first,” says Clayton DeKorne, editor-in-chief of Remodeling magazine. "When you adjust your focus to think like a broker first, you can dull clients’ No. 1 pain point—cost—with a discussion of the amount that can be recouped."
 
Nationally, here are the five projects with the greatest ROI in the report's mid-range cost category:
 
Manufactured Stone Veneer (94.9% ROI)
  • Average Cost: $8,907
  • Average Resale Value: $8,449 
Minor Kitchen Remodel (80.5% ROI)
  • Average Cost: $22,507
  • Average Resale Value: $18,123 
Deck Addition (Wood) (75.6% ROI)
  • Average Cost: $13,333
  • Average Resale Value: $10,083 
Siding Replacement (75.6% ROI)
  • Average Cost: $16,036
  • Average Resale Value: $12,119 
Entry Door Replacement (Steel) (74.9% ROI)
  • Average Cost: $1,826
  • Average Resale Value: $1,368 
And the five projects with the greatest ROI in the report's upscale cost category are:
 
Garage Door Replacement (97.5% ROI)
  • Average Cost: $3,611
  • Average Resale Value: $3,520 
Window Replacement (Vinyl) (73.4% ROI)
  • Average Cost: $16,802
  • Average Resale Value: $12,332 
Grand Entrance (Fiberglass) (71.9% ROI)
  • Average Cost: $8,994
  • Average Resale Value: $6,469 
Window Replacement (Wood) (70.8% ROI)
  • Average Cost: $20,526
  • Average Resale Value: $14,530 
Bathroom Remodel (60.2% ROI)
  • Average Cost: $64,743
  • Average Resale Value: $38,952 
Nationally—and on the other end of the spectrum—here are the five projects with the lowest ROI in the mid-range cost category:
 
Backyard Patio (55.2% ROI)
  • Average Cost: $56,906
  • Average Resale Value: $31,430 
Master Suite Addition (59.4% ROI)
  • Average Cost: $130,986
  • Average Resale Value: $77,785 
Bathroom Addition (60.6% ROI)
  • Average Cost: $47,427
  • Average Resale Value: $28,726 
Roofing Replacement (Metal) (60.9% ROI)
  • Average Cost: $38,600
  • Average Resale Value: $23,526 
Major Kitchen Remodel (62.1% ROI)
  • Average Cost: $66,196
  • Average Resale Value: $41,133 
And the five projects with the lowest ROI in the upscale cost category are:
 
Master Suite Addition (50.4% ROI)
  • Average Cost: $271,470
  • Average Resale Value: $136,820 
Bathroom Addition (58.1% ROI)
  • Average Cost: $87,704
  • Average Resale Value: $51,000 
Major Kitchen Remodel (59.7% ROI)
  • Average Cost: $131,510
  • Average Resale Value: $78,524 
Bathroom Remodel (60.2% ROI)
  • Average Cost: $64,743
  • Average Resale Value: $38,952 
Window Replacement (Wood) (70.8% ROI)
  • Average Cost: $20,526
  • Average Resale Value: $14,530 
The 2019 Cost vs. Value Report surveyed more than 3,200 real estate professionals about returns for 22 popular renovation projects in 136 different U.S. housing markets—up from 100 markets last year. View the full report, including project descriptions and city-level data, here.
 
This appeared first on RISMedia's Housecall.
 
Jameson Doris is RISMedia's blog and social media editor. Email him your real estate blog ideas at jdoris@rismedia.com

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