It goes without saying that investing in your home’s appearance increases the overall value of your property. However, a common misconception is that remodeling the interior of your home offers the highest return on investment. While a beautiful new master bedroom with modern furniture might make for better living space, it’s a costly investment that doesn’t offer high ROI.
On the other hand, exterior home remodeling allows you to recoup up to 97.5% of your investment. Since you’re not doing a full-on renovation but only replacing the existing assets of your home, it saves you both money and time. In this article, we’ll only mention the projects that offer the highest ROI, and list them from lowest to highest percentage. So, without further ado, let’s see which replacements allow you to make the most out of your investment.
Roofing Replacement
Replacing your whole roof seems like a lot of work, and it’s something many homeowners often put off. However, a new roof offers a high ROI and will likely end up paying itself off in the future.
A new metal roof will set you back around $38,600 on average, and increase your home’s resale value by about $23,526, according to remodeling.hw.net. This amounts to an ROI of 60.9%, which is higher than that of an upscale kitchen remodel or bathroom addition.
However, if your material of choice are asphalt shingles, you will be able to get a higher increase. The alteration costs around $22,636, and will increase the resale value of your home by $15,427. With an ROI of 68.2%, this roof replacement surpasses the resale value of a major kitchen or a bathroom remodel.
Window Replacement
Windows play an important role in both the functionality and value of your home. Depending on the type of material you opt for, you could get a return of investment of nearly 74%.
For example, a wood window replacement will set you back around $20,526, and yield a return of $20,526 on average. With a 70.8% ROI, the quick alteration surpasses the resale value of an upscale master suite addition.
On the other hand, vinyl windows are the most popular choice for homeowners all over the US. They can dramatically reduce the outdoor noise levels, your cooling and heating costs, and recoup a big chunk of your investment. The price of an upscale vinyl window replacement averages about $16,802 and increases the resale value of your home by $12,332. This means you will be able to enjoy the ROI of around 73.4% — a higher percentage than any alteration we have mentioned so far.
Siding Replacement
Faulty, old siding can drive up your energy bills and drastically decrease the value of your home. However, a siding replacement will both protect your home from the outside elements and offer a high return on investment.
The alteration costs about $16,036 and increases the value of your home by $12,119. With a 75.6% ROI, new siding will recoup more cost than an upscale or a mid-range kitchen remodel.
Door Replacement
Doors are quite important when it comes to making the right first impression. An entry door replacement is by far one of the quickest and cheapest alterations you can make to increase the value of your home. With the average cost of $1,826 and resale value of $1,368, steel door replacements offer a 74.9% return on investment. However, we have saved the best for last.
Remember that crazy 97.5% return of investment we mentioned at the beginning of this article? Believe it or not, it can be achieved by replacing your garage door. On average, the alteration costs $3,611 and adds $3,520 to the resale value of your home, creating a 97.5% ROI. The quick and painless remodel will help drive in potential buyers to your home and give you the highest ROI possible.
Final Thoughts
Let’s face it, we all judge a book by its cover. The curb appeal of your property is a huge factor when it comes to selling it, and the exterior of your home is a big part of it.
While remodeling the interior of your home might make you feel warm and cozy, it often makes for an unpredictable investment. To conclude, exterior home remodeling offers the highest ROI, making it the best investment you could make.
