A guide for sellers to home improvement projects for which buyers will pay top dollar.
The decision to sell one's home is often fraught with emotion - but it is the next decision that usually packs the biggest wallop. Refresh and repair? Remodel? Renovate? What needs to be done and how much will it cost to prep a home for sale? More importantly, which home improvement projects deliver the highest return on investment? Conversely, which home improvement projects will have buyers saying, "Are you nuts? I'm not paying an additional $1,5000 for that!"
According to the 2019 Remodeling Impact Report, a joint study of the National Association of the Remodeling Industry (NARI) and the National Association of REALTORS* (NAR), provides information to guide sellers toward those projects that make the most sense relative to cost.
The study analyzes 12 interior and 10 exterior home improvement projects, combines average project cost with likely buyer appeal, and gives an estimated return on investment (ROI) when homeowners sell their homes.
What Attracts Buyers? (highest to lowest)
1. Complete Kitchen Renovation 7. New Master Suite/Owners' Suite
2. Kitchen Upgrade 8. Add New Bathroom
3. HVAC Replacement 9. Basement Conversion to Living Area
4. New Wood Flooring 10. Attic Conversion to Living Area
5. Hardwood Flooring/Refinishing 11. Closet Renovation
2019 Remodeling Impact Report - Exterior
New Roof - 107% ROI ($7,500 - $8,000)
New Garage Door - 95% ROI ($2,000 - $2,100)
New Fiber-Cement siding - 76% ROI ($15,000 - $19,700)
New Front Door - 74% - 75% ROI (Steel: $2,700 - $2,000; Fiberglass: $1,500 - $2,000)
2019 Remodeling Impact Report - Interior
New Wood Flooring - 106% ROI ($5,000 - $4,700)
Hardwood Flooring Refinish - 100% ROI ($2,600)
HVAC Replacement - 85% ROI ($7,000 - $8,200)
Insulation Upgrade - 83% ROI ($2,000 - $2,400)