For homeowners, deciding which home improvement projects are worth the time and money required to complete a renovation can be a difficult task. Weighing the cost of materials, labor and overall outcome are all factors at play, and sometimes remodeling projects don’t deliver the return on investment (ROI) expected.
Ace Handyman Services recently compiled a list of the 25 home improvement projects that offer the highest ROI, helping homeowners choose the best project for them and signaling to professionals where renovation dollars could land.
To calculate ROI, Ace Handyman Services gathered data on average project costs and resale value increases from a number of sources and calculated ROI with the formula of resale value added/average job cost. This calculation allows for comparability across projects, even when individual home upgrade costs vary. Ace’s list focused on smaller projects, keeping things practical for the average homeowner.
Projects with the biggest ROI (by percentage):
- Replace Garage Door (268%)
- Standard Lawn Care Service (217%)
- Replace Entry Door (Steel) (216%)
- Install Manufactured Stone Veneer (208%)
- Sand and Refinish Hardwood Floors (147%)
- Install New Hardwood Floors (118%)
- Replace Siding (Fiber-cement) (114%)
- Paint Interior (107%)
- Landscape Maintenance (104%)
- Upgrade Landscape (Install walkway, planters, shrubs, trees) (100%)
- Replace Siding (Vinyl) (97%)
- Install Backup Power Generator (95%)
- New Wood Deck (95%)
- New Patio (Concrete paver patio over base of compacted gravel and sand) (95%)
- New Composite Deck (89%)
- Smart-Home Upgrades (87%)
- Upgrade to Grand Entrance (Fiberglass) (85%)
- Install Irrigation System (83%)
- Replace Windows (Vinyl) (76%)
- Convert HVAC (Fuel to electric) (72%)
- Replace Windows (Wood) (70%)
- Landscape Lighting (59%)
- Landscape Lighting (59%)
- Add Outdoor Fire Feature (56%)
- Closet Remodel (55%–60%)
- Paint Exterior (55%)
The average cost for the project with the strongest ROI, replacing garage doors, costs around $5,000 on average, but adds an average retail value of over $12,500, bringing this project to the top of the list. Standard lawn care services proved to be the cheapest home improvement with strong ROI. Functional upgrades, like adding backup power generators, and efficiency upgrades, like window replacements or adding irrigation systems, yield ROIs of 75%-95%, producing considerable returns for homeowners in the long run.
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