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A home is often the largest investment a person will make in their lifetime?but it’s not a hands-off investment. Failing to make improvements to your home could cost you when it comes time to sell. Zonda Media’s 36th annual Cost vs. Value report polled over 6,000 Realtors to determine the total value renovations add to the sale price of a home.

Here are the top five most worthwhile home remodeling projects:

HVAC Conversion Takes the Lead
The most profitable renovation with a 103.5% return on investment is HVAC conversion and electrification. Electric heat pumps are growing popular as they provide heating and cooling. Electricity has surpassed natural gas as the largest residential energy source, making HVAC conversion a smart investment for buyers looking to save money on energy bills.

Curb Appeal Projects Are a Win
The four remaining home renovation projects have one thing in common: They are all exterior projects. Garage door replacement recouped 102.7% of its initial investment. Installation of manufactured stone veneer recouped 102.3%. Replacing an entry door recouped 100.9% of its initial investment. Vinyl siding replacement almost recovered the initial investment, recouping 94.7%.

The common trend here is easily explained: First impressions count. If the exterior of a home is unkept, buyers tend to view the rest of the property negatively, no matter how beautiful the interior. If, however, the outside of a home looks well cared for, buyers enter the home with a positive mindset, increasing the chances of a sale and a higher price.

Spend Renovation Dollars Wisely
When looking to increase the value of your home, prioritize spending. An HVAC conversion can be upward of $17,000. Adding manufactured stone veneer to the exterior of a home can cost over $10,000, and replacing older siding with new vinyl can run over $16,000.

There are two cost-effective renovations in the top five from the “Cost vs. Value” report: Replacing a garage door can cost around $4,000, and a new steel front-entry door can be installed for as little as $2,200, proving you don’t need to spend a fortune to see a return on your investment.

To find out more about the 2023 “Cost vs. Value” report, visit www.costvsvalue.com.

High ROI Projects