Monday, January 18, 2016

Which home remodeling projects will pay the best returns? The 2016 Cost vs. Value report is in!

Are you planning to do a few improvements around the house in 2016, or even embark on a larger remodel or addition? While everyone loves a fresh new paint job, new bathroom, or kitchen upgrade, most of us keep an eye on the budget as well, expecting a reasonable rate of return on the work once we go to sell or refinance the house. So which remodels will actually pay the most dividends, offering the highest Return on Investment (ROI)? 

Luckily, we can turn to a trusted resource for answers. Each year, Remodeling Magazine publishes their Cost vs. Value Report, tracking the average cost and ROI for common household fixes. The results may surprise you!

And the award for renovation project that yields the highest ROI is….the envelope, please…installing attic insulation.

Not exactly the kind of dazzling remodel you brag to neighbors about, right? But in fact, installing fiberglass insulation in the attic offered a super return of about 117%, or $1.17 for every dollar invested. The report found that the average cost to lay insulation in the attic was $1,268 nationwide, while it increased a home’s value by about $1,482 when it came time to sell or appraise, by far the highest on the list of 30 renovation projects evaluated.

Number two on the list was installing manufactured stone veneer to the exterior of a home, which offered a 92.9% ROI.

Next on the list for top returns was replacing a mid-priced garage door (91.5% ROI), replacing a steel entry door (91.1%), and replacing an upscale garage door (90.1%).

It’s interesting to note that 12 of the 15 highest ranked renovation projects were all on the outside of the house, reinforcing the notion that giving your home a face lift and improving curb appeal pay the biggest dividends.

The Cost vs. Value report also found that renovations with high price tags yielded some of the lowest ROIs and almost never paid for themselves.

For instance, even a basic kitchen remodel costs an average of $20,122 but increases the value by only 83.1% for each dollar spent. Larger projects, like adding a family room addition, cost an average of $86,615 but only increase the home’s value by 67.9% of that dollar figure.

Those paltry returns are no fluke, as the report shows a trend of the highest price projects not making dollars and sense when it comes time to sell. A midrange bathroom addition offered only a 56.2% ROI, an upscale bathroom addition 56.7%, upscale master suite remodel 57.2% ROI, and a high-end bathroom remodel yielded only 57.5% of the cost.

Four out of the five projects that cost less than $5,000 for a professional contractor to handle ranked in the top for cost recoup, but no project with a price tag of $25,000 or more ranked better than 15 out of 30 on the list.

In summary, think about simple, low-cost projects to the exterior of the house for maximum return on investment. If you are fixing up your home with the thought of improving the value with a sale or refinance in mind, concentrate on DIY renovations that spend hundreds, not thousands of dollars, as well as tangible improvements that will actually save money (attic insulation) or smaller, low-price renovations to kitchens and bathrooms.

Here is the complete list, including job cost, resale value and cost recouped – or ROI.


  1. For a great number of years, we’ve got been functioning for uncountable prospects and operating all more than the town and its nearby areas. Garage Door Repair Manhattan Beach CA only need you to inform us the specific garage door trouble and we’ll go to your spot and verify the garage door.

    Garage Door Repair Manhattan Beach CA
    Garage Door Service In Manhattan Beach CA
    Garage Door Spring Replacement In Manhattan
    Garage Door Off Track Repair  In Manhattan
    Emergency Garage Door Service In Manhattan

  2. That's kind of interesting. You would think that during a rough economy more people would be trying to tackle DIY home improvement projects more often to save money.

  3. This site is for individuals to offer/ask for advice on home improvement projects. Also feel free to post the story and pictures of projects that you're working. read more

  4. You share informative post I hope you will share another good post.
    Bathroom Repair

  5. Explore millions of home design ideas and home improvement pictures. Browse interior design ideas, exterior design ideas & project estimates by room window coverings

  6. Really great news!!! this information is well worth looking everyone. Good tips. I will be sharing this with all of my friends! Thank you for sharing valuable information.
    Kitchen remodeling Contractors San Diego

  7. My favorite parts of this project this year have been the conversations it has sparked. I had a ton of kids look at the floor plan and immediately start discussing which walls they would take down and how they would want to combine rooms.
    Bathroom remodeler Austin

  8. Thanks for taking the time to discuss this, I feel strongly that love and read more on this topic. If possible, such as gain knowledge, would you mind updating your blog with additional information? It is very useful for me. TV service

  9. We came across implementing clearly show it all for a second time. Highly recommend regardless of what I want to ensure optimism thru coming you could possibly continue when it comes to proving the tremendous deal.
    Seattle artificial turf
    Seattle windows and doors
    Roofers in Monroe, WA
    Kirkland Plumbing Company
    Seattle Roofing Contractor with warranty

  10. Thanks for the nice blog. It was very useful for me. I'm happy I found this blog. Thank you for sharing with us,I too always learn something new from your post.
    Home Remodeling

  11. Thank you for this interesting article. I would never have thought about comparing renovations with ROIs. I typically just assume that the better and more expensive the renovation, the more return it will bring but the data clearly suggests otherwise. I really wouldn't have thought that curb appeal would be more important than interior renovations either and I was definitely intrigued by that statistic.

  12. This was about 6 months ago and I'm sad to say the beautiful light fixtures are still in their boxes waiting to sparkle in our bathroom. heating and cooling

  13. It's better to hire a company that has the proper training,

  14. شركتنا من المتميزون في اعمال الاصلاح بدون هدم او تكسير من خلال شركة ركن البيت التي تقدم الكثير والكثير في عمل اللازم وتصحيح الاخطاء التي تسببها تسريبات المياه فنحن مثلا

    شركة كشف تسربات المياه بجدة تقدم خدمة لعمل الاصلاح بدون اي خراب ونقدم النصيحة للعملاء بالابتعاد عن الاعمال التي تؤدي الي هذا الخراب فتعاملك مع شركة كشف تسربات بجدة لديها الخبرة الكافية تساعدك في الحفاظ علي منزلك كما اننا نتمكن في اننا سوف نرتقي بخدمة لاننا نقوم بالعمل السليم لها كما يوجد لدينا خدمات العوازل التي تمنع التسريبات من الاسقف لكم والحوائط والخزانات من خلال شركة تسمي الاولي في مجالها لذلك نحن نقدم شركة عزل خزانات بالرياض التي تعتبر في عل الخزانات الارضية من الداخل بواسطة مواد متميزة كما نقدم لكم شركة عزل اسطح بالرياض لعمل العوازل التي تمنع جميع التسريبات في الاسقف

  15. بسم الله الرحمن الرحيم عميلنا العزيز نحن نقدم افضل خدمات تنظيف المجالس والشقق بافضل انواع التنظيفات المشهود لها عالميا
    شركة تنظيف شقق بالطائف
    شركة تنظيف مجالس بالطائف
    شركة تنظيف شقق بجازان
    شركة تنظيف مجالس بجازان
    شركة تنظيف شقق بحائل
    شركة تنظيف مجالس بحائل
    ونحن فى خماتكم 24 ساعة على مدار الشهر

  16. This article is extremely good. Really great idea. I highly recommend to other to follow your tips.I also must follow these. This tips are really beneficial for home improvements. Thanks for sharing with us.

  17. It has power tools in all known tool categories such as the following: power saws, drills, hammers, routers, and wet and dry vacuum cleaners. Philip L. Floyd

  18. Residential Building Maintenance Baton Rouge services for condos, apartment buildings and home owner association (HOA) can be developed to fit your requirements both big and small.

  19. Superbly written article,window cleaning companies if only all bloggers offered the same content as you, the internet would be a far better place..

  20. I wish I hadn't waited so long to seal the wasn't as hard as I thought! local roofer


  21. Thank you. I just wanted to know where to ship it since I know now to keep producing it

    Wardrobes & Loft Shutters Chennai

  22. When your website or blog goes live for the first time, it is exciting. That is until you realize no one but you and your.

  23. When your website or blog goes live for the first time, it is exciting. That is until you realize no one but you and your. home improvement windows

  24. What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much.
    Certified Precision Roofing

  25. Especially Ricky and Mike! If you are not happy, they will make it from beginning to end. We simply love our new bathrooms here.remodeler in Columbia

  26. Positive site, where did u come up with the information on this posting? I'm pleased I discovered it though, ill be checking back soon to find out what additional posts you include. Calgary Alberta