When you’re thinking about selling your home, one of the biggest questions is: How do I get the most money from the sale? Sometimes, the answer leads to home remodeling projects. But what type of remodeling will actually help you make more money? I’m going to share five remodeling projects that can increase your home’s resale value based on data I found. Additionally, there are several other remodels that might surprise you because, despite what HGTV may tell you, many can actually cause you to lose money.
I came across this data on a site called Remodeling.hw.net, created by Remodeling by JLC. Although I’m not affiliated with them, I wanted to share their valuable insights, specifically for homeowners in Portland, Oregon, looking for ways to maximize their home’s sale price.
1. Garage Door Replacement: 180% Return on Investment
The top project for recouping your investment? A garage door replacement. I was surprised by this, too! According to the data, you can expect to get 180% of your investment back. The average job cost is around $4,900, but the resale value goes up by $8,800. That’s almost double your money back. A new garage door can dramatically improve curb appeal, which explains why it’s such a profitable investment.
2. Manufactured Stone Veneer: 167.5% ROI
The next big moneymaker is manufactured stone veneer, which refers to adding a stone façade to the exterior of your home, typically around the entryway. It’s a popular aesthetic choice that adds a luxurious feel to any home. The average cost is about $10,892, but you can expect to see an increase in resale value by around $18,242, giving you a 167.5% return.
3. Steel Entry Door Replacement: 144% ROI
Replacing your entry door with a steel door can also provide a significant return on investment. For around $2,338, you can increase your resale value by $3,372, a 144% return. A steel door adds a sense of security and durability, which many buyers appreciate. Plus, the front door is one of the first things potential buyers see, so a secure, attractive entry is key to a good first impression.
4. Minor Kitchen Remodel: 23% Profit
A minor kitchen remodel—think cabinet resurfacing, updated hardware, and new countertops—costs around $27,615 on average. But you can expect to get about $33,971 back, earning you around 23% profit. While the return isn’t as high as the projects above, kitchens are a focal point for many buyers, making this a worthwhile investment if done right.
5. Grand Entrance (Fiberglass): 17% Profit
Another project with a decent return is creating a grand entrance using fiberglass materials. For about $11,600, you’ll see a resale value increase of $13,600, earning you a 17% profit. While not a huge return, a striking entrance can make your home feel more upscale, contributing to better offers.
Remodeling Projects That Can Cost You
Now, not all remodeling projects are worth your time or money, especially if your goal is to sell soon. Let’s look at a few that might surprise you:
- Siding Replacement (Fiber Cement): You might expect to make money, but you’ll actually lose around 10% on this project.
- Deck Addition (Wood): Depending on your home, a small deck can add value, but on average, you’ll lose 11% on this project.
- Bathroom Remodel (Mid-Range): A bathroom remodel costs around $29,000, but you’ll only get about $22,000 back, resulting in a 24% loss.
Projects That Don’t Pay Off (But Might Be Necessary)
For many homeowners, it’s tempting to undertake large projects like kitchen or bathroom remodels before selling, but data shows that major remodels often lose money:
- Major Kitchen Remodel (Mid-Range): Spending $81,000 on a major kitchen overhaul will only get you about half of that back. So, unless you plan to enjoy that kitchen for several years, it’s not worth it.
- Roof Replacement (Asphalt Shingles): The data suggests you’ll lose 42% of your investment. However, in areas like Portland, I believe this number should be closer to an 80% return, especially for first-time buyers who can’t afford major repairs like roof replacements.
I know a great roofing contractor who can do the job for around $18,000, well below the $30,000 many roofing companies charge. So, while roofing might not seem like a moneymaker according to the data, in some markets, like Portland, it can offer buyers peace of mind and potentially a higher sale price.
Remodeling Myths: Kitchen and Bathroom Overhauls
Thanks to TV shows, we’re often led to believe that major kitchen and bathroom remodels are the key to selling a house fast and for top dollar. But, in reality, you’ll lose money on these projects if you do them just to sell. The only time these big-ticket remodels make sense is if you plan to enjoy them yourself for several years before selling.
Final Thoughts: First Impressions Matter
One takeaway from this data is that first impressions matter. Projects that improve curb appeal, like garage doors, entry doors, and stone veneer, provide the best returns. If buyers love what they see when they pull up to your house, you’re more likely to get top-dollar offers. A great first impression can make all the difference, while expensive kitchen and bathroom remodels may not provide the return you expect.
If you’re thinking about selling your home in Portland, Oregon, and want guidance on which remodeling projects make sense, feel free to reach out. I’d be happy to help you make informed decisions to maximize your home’s value.
Thanks for reading, and I hope this was helpful. If you liked this blog, please share it, and good luck with your home sale!
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Disclaimer: The content in any of Shawn Yu (Shawn Realty) Youtube videos or this website shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other & may be outdated or inaccurate. Shawn Yu/Shawn Realty is a licensed principal real estate broker/brokerage doing business in Oregon. To contact Shawn Realty for selling, buying investing in Oregon, please email shawn@shawn-realty.com or call 503-515-4499.
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