CHAPTER 3 Renovations That Cost More Than the ROI When it comes to remodeling, the idea that "bigger is better" doesn’t always hold water. In fact, full-scale renovation projects often fail to deliver the best return on investment (ROI). Instead, a smarter approach to getting the most value for your time, money, and sanity is to refresh or replace existing features like windows and doors with a sensible, mid-range upgrade. Let’s explore the places where your money is best spent for maximum ROI, as well as some of the areas where you might not get your money back when it’s time to sell. We’ll start with some replacement projects before moving on to those larger undertakings, like kitchen and bathroom remodels, where the ROI can be a mixed bag. Replacements: The Safe Bets Replacement projects are relatively simple, low-cost, and within reach for most homeowners. According to Remodeling M agazine, the top four improvement projects in terms of ROI are:
• Garage door replacement: 98.3% • Manufactured stone veneer: 97.1% • Deck addition (wood): 82.8% • Minor kitchen remodel: 81.1%
These aren’t dramatic, headline-grabbing changes, but they’re highly effective. Why? Because every one of these projects impacts the visible exterior of your home, creating a positive first impression that lingers in the minds of potential buyers. And, as we all know, you never get a second chance to make a first impression! 10
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