Ask any homeowner about what home remodeling projects they would like to complete, and most will say, “How much time do you have?”
Home improvements or home remodeling projects can stem from a variety of motivations, like preparing your home to sell, adding space for a growing family, addressing outdated features or aesthetics, or fixing structural or functional issues.
However, when it comes to home remodeling projects, too many people assume their project will proportionally increase the value of their home. Few actually consider the complete scope of return on investment (ROI), taking into account not only potential impact on resale value but also the total costs of time, labor, and materials. Some renovations may provide more quality-of-life ROI by improving comfort and aesthetics without significantly impacting resale value, while others can deliver notable financial returns.
Whether you’re looking to upgrade your living space, increase the equity of your home, or trying to make some quick changes to improve your resale price, here are four home remodeling projects with the highest ROI in the San Diego area and some tips on how to get them done.
Top 4 Home Remodeling Projects with the Highest ROI
Before diving into specific projects, it’s important to understand how the data supporting these ROI estimates was gathered. This article references findings from the 2024 Cost vs. Value Report (www.costvsvalue.com) conducted by Zonda Media, a reputable research firm in the real estate and construction industries. The report’s ROI figures are based on averages for both the cost of materials and labor. Actual remodeling costs will vary based on size or scope, timing, quality of finishes, accessories among other factors. This may lead to variations in actual returns.
1. Garage Door Replacement
- Job Cost: $4,333
- Resale Value: $6,982
- ROI: 161.1%
Replacing an old garage door is one of the simplest ways to dramatically boost your home’s curb appeal. Plus, it happens to deliver the highest ROI of any home remodeling project. The impact is largely due to the prominent visual space a garage door occupies on a home’s exterior. A sleek, modern garage door can make your entire facade look fresher and more attractive to buyers.
Garage doors with the highest ROI include insulated steel doors with modern paneling, custom carriage-style doors, and those featuring windows or decorative hardware. These options not only enhance the home’s exterior aesthetics but also improve functionality and energy efficiency.
2. Steel Entry Door Replacement
- Job Cost: $2,241
- Resale Value: $3,551
- ROI: 158.5%
Upgrading to a steel entry door is a simple yet impactful change that can drastically improve both the look and energy efficiency of your home. Steel doors cost less than wood ones, giving you a cost-effective way to make a big impact on the curb appeal of a home, without sacrificing performance, life span, or durability.
Why It Works:
- Cost-Effective Curb Appeal Steel doors are less expensive than wood but provide a similar aesthetic boost. This makes them a budget-friendly way to enhance a home’s exterior.
- Energy Efficiency: Many steel doors come with insulating cores, which can help keep your home comfortable year-round and lower energy bills.
- Increased Security: Steel doors are harder to break into, providing an added layer of safety that appeals to security-conscious buyers.
3. Manufactured Stone Veneer
- Job Cost:$11,218
- Resale Value:$11,105
- ROI:99.0%
Manufactured stone veneer (MSV) is a high-ROI project because it delivers a striking visual upgrade at a relatively moderate cost. MSV is an artificial cladding material designed to mimic the look of natural stone, making it a cost-effective way to add texture and sophistication to your home’s exterior.
Why It Works:
- Strong Visual Impact: Stone veneers add depth and elegance, creating an upscale appearance that can significantly boost curb appeal.
- Durability and Low Maintenance: Unlike natural stone, MSV is lightweight, easier to install, and resistant to wear and tear.
- Perceived Value: Even though it’s a faux material, MSV adds an air of luxury and craftsmanship that can make your home more appealing to buyers.
Pro Tip:
Use manufactured stone veneer to accentuate specific areas, such as around the entryway or along the lower portion of the facade, for maximum visual impact without overspending.
4. Minor Kitchen Remodel (Midrange)
- Job Cost: $25,898
- Resale Value: $22,719
- ROI: 87.7%
According to Homelight’s “Top Agent Insights End of Year 2024 Report,” “88% of agents say that upgraded kitchens and appliances are one of the bestselling points for homes.” This is a significant increase from the previous year in many parts of the country.
The trick to ROI with a kitchen remodel is the budget, and how you decide to balance what to upgrade, the quality of materials, and how much to work within the existing layout. For example, you can make a big impact with less expense if you keep your current cabinet boxes but upgrade the doors and hardware. If you’re looking to sell, an updated kitchen will appeal to buyers, which can also help your home stand out and sell faster.
Why It Works:
- High Buyer Interest: Kitchens are a focal point for most buyers, so even modest improvements can make a significant impact.
- Affordable Upgrades: By focusing on midrange materials such as quartz countertops, midrange appliances, and refaced cabinets, you can keep costs manageable while still delivering a fresh look. Plus, keeping the existing layout and avoiding costly structural changes, allows you to modernize your kitchen while keeping costs down.
Conclusion
Whether you’re updating your home to sell or simply want to enjoy a more modern space, focusing on high-ROI projects is a smart strategy. From replacing your garage door to enhancing your home’s exterior with stone veneer, these upgrades can boost both your home’s value and appeal.
Curious about what features are popular in your neighborhood? Thinking of moving and wondering what home remodeling projects, if any, you should do before listing? Want recommendations on contractors? I’m happy to help!