Is Home Renovation Worth It? A Guide to Maximizing Your Investment

When it comes to home renovation, it's important to consider the return on investment. According to a study by the National Association of Realtors and the National Remodeling Industry Association, a complete kitchen renovation can recover about 59% of the cost, while a new master suite will generally return 50%. The Remodeling magazine report also states that manufactured stone veneer returns 95.5 percent of labor costs, and replacing a garage door pays 94.5 percent of the cost. Beautifying outdoor space is one of the best investments you can make for your home.

This is what people look at when they buy a home, and it's something everyone can agree on. Don't forget to focus on the exterior of your home as well; peeling paint, loose shutters, and fallen gutters are all immediate discouragements for potential buyers. If your entrance has cracks through it, seal it again; this is generally not prohibitively expensive and will demonstrate that the property is well maintained. Replacing your front door with a new one can also greatly improve the exterior and curb appeal of your home.

Replacing vinyl siding with stone cladding, even in a part of the house such as the entrance, can also be a great investment. The average cost estimate takes into account 36 linear feet of thresholds, 40 linear feet of corners and a steering block, and materials that include two layers of water-resistant barrier and corrosion-resistant slats and fasteners. This project also recovers almost all of its cost (just over 91 percent). When deciding whether or not to renovate your home, it's important to consider your schedule, market, budget, and price intent.

Don't forget to consider the pleasure you enjoy in the house while you're there; there's no reason to renovate for someone else. If the house is in poor condition, you may be able to save more by selling it to an investor at a reduced price. Ultimately, Bryan Sebring, owner of Sebring Design Build in Naperville, Illinois, reminds us that people often decide whether or not to buy a home before they walk through the front door. Home renovation can be an excellent way to maximize your investment and increase your home's value; however, it's important to consider all factors before making any decisions.