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Home renovation costs: 5 improvements to boost your home’s value

Whether you’ve found your forever home or just a stepping stone, improving it can be a winning proposition. Smart updates, such as the ones below, can increase your home’s value. By researching home renovation costs1, budgeting wisely and checking out expert tips on how much to renovate a house, you could not only recoup costs but improve your lifestyle as well – for multilevel returns.

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1. PROTECT YOUR MOST VALUABLE ASSETS
New roof (asphalt shingles)
Replacing an aging roof, while pricey, can prevent structural damage, enhance your home’s appearance and win over buyers. New roofing is the most popular exterior project for renovators.2

Average cost: $24,700
Average amount recouped: 66%

2. ADD SOME LUXE APPEAL
Master suite addition
Add grandeur to your life, and impress potential buyers, with a dream suite.

Average cost, midrange remodel: $136,739
Average amount recouped: 59%

3. COOK UP A HIGHER RESALE
Major kitchen remodel
Kitchens are key if you are selling, and they make being home more pleasant if you plan to stay. You can get a remodeled feel at a lower cost by resurfacing cabinets, changing hardware (such as drawer pulls) or replacing appliances.

Average cost, midrange remodel: $68,490
Average amount recouped: 59%

4. INCREASE YOUR CURB APPEAL
New entry door (steel door)
Your front door is one of the first things friends, neighbors and potential buyers see when they approach your house. For a low-cost way to improve this area, add a fresh coat of paint to your existing door and buy a new welcome mat.

Average cost: $1,881
Average amount recouped: 68%

5. RAISE YOUR HOME’S WORTH
New garage door
This update can have multiple benefits, including improving your home’s exterior, bolstering energy efficiency and ratcheting up your home security.

Average cost: $3,695
Average amount recouped: 98%

ESSENTIAL TIPS FOR REMODELING SUCCESS

Know what you can afford
Avoid ballpark figures. Instead, decide on a budget and stick to it. This will help you avoid “scope creep,” a term that describes all of those unplanned extras that can blow your budget.

Research financing options
If you don’t have cash for your renovations, you might need to borrow money. One option is a home equity line of credit. It will allow you to pay your expenses as they come up, and rates may be lower than other types of credit. Other options include a home equity loan or a traditional personal loan.

Get help from the pros
Nearly half of consumers who complete a home project do it themselves.2 But specialized jobs, such as rewiring an electrical outlet, may be best left to the pros. Before hiring an expert, ask for recommendations, check online reviews, have a face-to-face consultation and get a cost estimate in writing.

Consider the neighborhood
A big addition could make your house the most expensive on the block – which could be a problem if you want to recoup the cost when you sell. So if resale value is your No. 1 priority, take care not to overdo it.

  1. For cost/amount recouped data: Remodeling 2019 Cost vs. Value Report, © 2019 Hanley Wood, LLC. Complete data on each project above, as well as data on other renovations, can be downloaded free at www.costvsvalue.com.
  2. National Association of Realtors, 2020 Remodeling Impact Report: D.I.Y.
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The material provided on this website is for informational use only and is not intended for financial, tax or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.

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