Some efforts offer a better potential payoff than others. Some may be necessary for your family and lifestyle. How do you get the biggest bang for the buck? Here are the top factors to consider from consumer expert Jennifer Openshaw, author or The Millionaire Zone and a columnist for The Wall Street Journal.
The cost vs. value ratio is the expected resale return divided by cost of the project. Remodeling return on investment traditionally averages about 58 cents per dollar spent on the project.
The Best Choices
Kitchen and deck remodels have the highest payoff, but your choice may depend on your bank account (see chart).
Replace vs. Refresh
Replacing a roof or furnace returns 10 percent more than the overall average of 58%. Refreshes can do even better, earning more than 100 percent. A front door replacement returns more than it costs (see chart). Paint, cabinet makeovers, and hardware upgrades return the most, because they don't cost much.
Did you ever think that being different might pay off? If yours is the only home in the neighbourhood with a full bathroom on the first floor-highly desirable with an aging population-you might command a higher resale price.
|type of project||average cost||cost vs. value ratio|
|Entry door replacement (steel)||$1,218||102%|
|Deck addition (wood)||$10,973||73%|