Get the most bang for your buck with outdoor home projects
An updated kitchen would be heavenly. A bathroom redo is probably long overdue. And installing new wood floors would add instant class to your interiors. Problem is, these and other indoor remodeling projects don't always offer the best return on your investment these days - particularly if you plan to sell your home soon.
Instead, consider emphasizing your exterior with upgrades that are more likely to recoup a bigger portion of your renovation dollars.
Based on Remodeling Magazine's recent 2020 Cost vs. Value Report, homeowners reaped a greater return on investment, or ROI, on select outdoor/exterior projects. In fact, among the 10 projects promising the highest ROI, nine fit this criteria: manufactured stone veneer (95.6% of costs were recouped nationally, on average); garage door replacement (94.5%); fiber-cement siding replacement (77.6%); vinyl siding replacement (74.7%); vinyl window replacement (72.3%); wood deck addition (72.1%); wood window replacement (68.9%); steel entry door replacement (68.8%); and composite deck addition (66.8%).
By contrast, an upscale kitchen remodel only recouped 53.9% of costs, while an upscale or midrange bathroom remodel recaptured around 54%.
Bill Tierney, Realtor with Coastal Countryside Properties in Cohasset, Massachusetts, says these findings make sense.
"Many of these exterior projects help to make a strong first impression on buyers and visitors, and there's nothing like making a good first impression. It's harder to sell a home that lacks in curb appeal because if a buyer is soured on the house before they set foot in it, the battle turns uphill," he says.
Cristina Miguelez, remodeling specialist for Wilmington, Delaware-based Fixr.com, says many of these projects fall into the increasingly popular "outdoor living" category.
"Outdoor living is the hottest trend right now, and most buyers are looking for properties with such a space. That's why adding a deck or patio is a smart idea," she says. "Also, investing in low-maintenance and energy-efficient materials for the rest of your exterior - like new siding and vinyl windows - can save you over the lifetime of the home and improve its look."
Additionally, "depending on your home's price range, updating its exterior also increases the appeal of your entire neighborhood. Remember that, as your neighbor's home increases in value, so does yours," adds Teris Pantazes, co-founder of Settle Rite Home Services, a Baltimore- and Washington-D.C.-area contractor.
Tierney is especially bullish on energy-efficient window replacements as a worthy exterior project.
"A leaky window leads to higher energy costs," says Tierney, adding that older outdoor windows detract from your home's appearance.
Miguelez says the safest money bet is fiber-cement siding.
"This stuff will last 50 years, won't require painting or a lot of maintenance, and looks fantastic, which can make a big difference at resale," she says.
Outdoor living projects not mentioned in Remodeling Magazine's report, but often talked about by homebuyers and owners, include an outdoor kitchen/living area, aboveground pool, and pool house.
"An outdoor living space, complete with outdoor furniture, grill and a fire pit or fire table, is hot today. It can often cost around $20,000 to start. But you'll probably see an ROI in the 80% or higher range," Miguelez says.
Pools, on the other hand, "are often viewed as a net-zero improvement, with perhaps only half the value being recouped," Pantazes cautions. "Some people love them, but it may turn off others to your home."
A pool house can set you back "anywhere from $4,500 to $30,000, with installation. But I would expect the cost recoup on this to be low," says Caleb Liu, owner of Orange, California-based House Simply Sold.
Before committing to any home improvement project, perform the necessary due diligence.
"Ask yourself," Pantazes suggests, "does it add value in dollars or marketability? Does it preserve what you already have while protecting the value already in place? And is this something the market would broadly accept, or is it a niche product that you would like but most others would not?"