7 Home Improvement Projects With the Highest ROI in 2020
If you’re planning to sell your house within the next couple of years, it's time to start thinking about how to get the most value out of your asset. Investing in home improvement projects is one of the best ways to add value to your home. That said, not all of these projects are created equal.
With that in mind, below is a list of the seven home improvement projects with the best return on investment (ROI) in 2020.
Minor Bathroom Remodel: 102% ROI
Conventional wisdom says that bathrooms and kitchens sell houses. According to recent data from Fortune Builders, it looks like that may be holding true. A minor bathroom remodel took the top spot for home improvement projects with the highest ROI.
In fact, the data suggests that this project has a return on investment of 102%, meaning that if you spend $3,000 on the project, you would earn back a total of $3,060 when it is time for you to sell.
Keep in mind that doing a minor bathroom remodel doesn't mean gutting the place. It simply means replacing certain features such as the bathroom vanity or fixtures. By replacing these items with more modern versions and giving the room a fresh coat of paint, you can ensure you’ll get your money back and then some.
Landscaping: 100% ROI
The improvement project that scored the second spot on the list reminds us that curb appeal matters more than you might think.
Fortune Builders found that the average homeowner spent $4,900 on their landscaping project and received the same amount in return, giving this home improvement an ROI of 100%. If you do this project a few years in advance of when you intend to sell, you’ll get to enjoy a beautifully landscaped lawn for a few years and then get your money back on the sale price.
As far as what to do for landscaping, every yard is different, so it might be a good idea to bring in a professional. However, once the work is finished, it's all about keeping up with maintenance. Do your best to take care of any plants or trees that are part of your landscape, as needed. You should also mow the lawn frequently to ensure that you get your money's worth out of this investment.
Minor Kitchen Remodel: 98.5% ROI
Once again, it's not surprising that two of the top three remodeling projects with the highest ROI involve the bathroom or kitchen. However, in this instance, it is worth noting that your ROI depends on doing a minor remodel rather than a full-scale renovation.
In this case, homeowners spend an average of $15,000 on their minor remodels and receive $14,600 in return.
While every kitchen remodel will look different, a minor project might involve replacing old countertops with granite or quartz, getting a new appliance package, and re-facing the kitchen cabinets.
It's best to save making major changes to the layout or investing in brand new cabinets only if you intend to stay in your home for the foreseeable future.
Attic Bedroom Conversion: 93.5% ROI
If your home has an attic, it may be worth considering converting it into usable space instead of storage. The Fortune Builders data found that this project has an average ROI of 93.5%. Traditionally, homes that have more bedrooms and bathrooms garner a higher sale price, so it makes sense that adding a bedroom will likely add value to your home.
Be prepared, however, to spend some money to make it happen. On average, homeowners pay $39,200 to add this usable square footage to their homes. So, only invest in converting your attic if you plan on staying in your home for a while. If you plan to sell soon, it's not a worthy investment.
Major Bathroom Remodel: 93.2% ROI
The fifth spot on the list is another bathroom project. This time, however, it's for a major bathroom remodel. At 93.2%, this project doesn't have a bad return on investment, especially considering that homeowners only spend an average of $26,000 in order to do the work and receive an average of $24,300 for their efforts.
A major bathroom remodel could include getting rid of your old-fashioned soaking tub in favor of a rainforest shower. It could also mean re-tiling, redoing the floors, and putting in all new fixtures.
While you're at it, you may also want to think about adding a double vanity to the mix, as that has seemed to be a high priority for prospective buyers in recent years.
A major bathroom remodel will not only make your bathroom more livable, but it will almost pay for itself when you do sell.
Major Kitchen Remodel: 91% ROI
Next, Fortune Builders found that a major kitchen remodel has an average return on investment of 91%. Bear in mind, though, that this is another home improvement project with a higher price point. On average, homeowners spend $43,900 to do the work and receive $39,900 in return.
These days, doing a major kitchen remodel is all about creating an open-concept space. Don't be afraid to take down walls in order to open up your kitchen to the rest of your living area.
If working on a design plan is not your specialty, this is one instance where you may want to hire an interior designer to help your final product appeal to the vast majority of buyers.
Entry Door Replacement: 90.7% ROI
The last project on our list is entry door replacement. According to the Fortune Builders data, this project costs homeowners an average of only $1,410. In exchange for doing the work, they receive an increase in their home value of $1,280 on average.
Like landscaping, entry door replacement can be considered part of pumping up your home’s curb appeal. Remember, your front door is one of the first things prospective buyers will see when they pull up to your home for their showings.
With that in mind, you’ll want to do your best to make sure that your home’s entryway makes the best possible first impression.
Improve Your Home for Yourself and Buyers
Home improvement projects make your home a better place to live. If you plan on staying in your home for many more years, investing in some of these projects can make you enjoy your space even more.
When you do decide to sell, the improvement projects will almost pay for themselves from the inevitable increase in sale price, which will help you pay for necessities such as commission and closing costs.