Good as new: High ROI renovation projects

Home renovations that pay off at resale.

Work and study from home setups continue to be the preferred option for many consumers amid the pandemic that has radically changed the world. The situation has resulted in a growing number of Americans thinking about moving to less densely populated areas and leaving the urban lives they once knew. Market research company Harris Insights and Analytics' poll suggests that nearly a third of Americans are considering uprooting their urban lives in exchange for a quieter home away from sleepless cities, a phenomenon that is also observed in Canada and the UK.

With this in mind, homeowners who have found their new homes and are looking to sell their current one will be looking for ways to spruce up their property before putting it up for sale. While major renovations seems like a step in the right direction toward recouping money spent, some renovations just don't pay off as much as others. Here are some home remodeling projects with the highest potential return value at resale. These are the kinds of project that will drive demand for particular categories of construction and décor products.

Kitchen and bath

Home remodeling channel HGTV's website lists major kitchen and bath investments as having a notably high return value, citing markets in Washington DC, Minneapolis, Chicago, Atlanta, San Francisco and San Diego as having proven to offer triple-digit returns on bathroom remodels. Moreover, Remodeling Magazine's recent study also suggests adding new mid-priced sinks, faucets and installing a new wall coverings. For kitchens, HGTV says it's possible to recoup 98.5 percent of costs for a minor remodeling, suggesting the installation of recessed lights to light countertops.

Entryways and front doors

Media news website Tapinto suggests improving the front landscape of the house to make a great first impression for potential buyers. Low-budget decorations, such as wall borders, planters and shrubs that make the entryway pleasing to the eye should add considerably to the house's resale value. If needed, it's also great idea to repaint or replace the front door.

Overall curb appeal

Low-cost projects that contribute to an improved curb appeal of the property – that is, the general attractiveness of a house or other piece of property from the sidewalk to a prospective buyer – may not be a huge addition to a home's final resale value, but they help grab the attention of potential buyers, which could lead to making a sale faster. Investopedia recommends a well-landscaped lawn, fresh paint inside and out, clean carpets and some new fixtures. Subtly accented walls and minimalist backsplashes should be enough to make an aesthetically pleasing interior design, as their article stresses now is not the time to incorporate bold design choices.

Stone veneer leads

On the subject of exterior aesthetics and curb appeal, Remodeling Magazine's EIC Clayton DeKorne says "I do think there is a whole psychology about that first impression, that you think this is a well-put-together house." This is after stone veneer leads was found to yield 96 percent ROI in resale value in a study conducted by the magazine. In the same study, nine out of ten leading investments are outside, wherein garage doors yielded a 94.5 percent ROI.

Vinyl windows and garage doors

Financial comparison website Supermoney listed vinyl windows and garage doors among renovation projects that offer a good return on investment. Quoted in their article, MB Windows owner Michael Bohm says, "Replacing a home's windows isone of the smartest investments someone can make in what is, for most people, their largest investment–their home. New windows are noticeably more energy-efficient than older, single pane windows with aluminum frames."

"Experts estimate that homeowners can recoup between 70 and 80 percent of the project cost of replacing windows when they sell their home. They can also save hundreds of dollars per year (depending on the climate in which they live) in heating and cooling costs. In that sense, window replacement essentially pays for itself, making it a home improvement project with an excellent ROI," he added.

There's always a reason to renovate. Whether homeowners are looking to sell their property or simply want a better aesthetic and functionality in their properties, the high demand is consistent for the supplies needed to undertake these renovations.