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By Josh Garskof
February 11, 2015
Robert A. Di Ieso, Jr.

Q: I’m hoping to sell my house in the spring, and I’m told the place could use some freshening before I put it on the market. I don’t have the budget to fix everything, so which are the best projects to invest in if I want to get some of that money back when I sell?

A: The good news is that after years of sluggish performance, in many places the housing market has started picking up steam again. But that doesn’t mean you can expect every home improvement project to increase your home value when it comes time to sell. Remodeling magazine’s latest Cost vs. Value report shows that, on average, home improvements paid back 62% of their costs at resale in 2014. That’s up from a low of 58% in 2011, but still well below the 87% paybacks of 2005.

Each year, the magazine surveys contractors about the costs for a host of common projects and asks Realtors to estimate how much each of those projects adds to a house. You can’t exactly take the results to the bank, because there are a host of other factors that will affect your payback, from how badly your house needs the work to how common such updates are in your neighborhood. Still, the numbers are handy to keep in mind if you’re investing in a project and also think you may sell within a few years.

Here’s how the 2014 return on investment looked for some major remodeling projects across the country. As you can see, curb appeal goes a long way, ditto cosmetic upgrades of kitchens and baths. For a regional breakdown to see how much these projects would add in your area, check out the full report.

 

Project Cost ROI
Siding Replacement (upscale fiber cement) $14,014 84.3%
Deck Addition (midrange wood) $10,048 80.5%
Minor kitchen remodel (midrange) $19,226 79.3%
Window Replacement (midrange vinyl) $11,198 72.9%
Finish basement (midrange) $65,442 72.8%
Window Replacement (upscale wood) $17,422 71.9%
Bathroom Remodel (midrange) $16,724 70%
Major Kitchen Remodel (midrange) $56,768 67.8%
Add a two-car garage (midrange) $52,382 64.8%
Family Room Addition (midrange) $84,201 64.1%
Bathroom Remodel (upscale) $54,115 59.8%
Major Kitchen Remodel (upscale) $113,097 59%
Master suite addition (upscale) $236,363 53.7%

Source: 2015 Cost vs. Value Report

Advertiser Disclosure

The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

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