Your Home is Your Family’s Biggest Asset—Invest In It

There’s no denying the value of owning your own home. Real estate is the world’s largest asset class, with its value comprising almost 60% of the total value of all global assets. As such, it’s not surprising that for many people, their home is their family’s biggest asset. What is surprising, though, is that in spite of this reality, many of us are not doing all that we can to maximize the value of our property—and this translates to wasted money.

By taking on home improvement projects that make a real difference to the value of a home, you can build on your existing investment and increase your odds of seeing a good return. However, not all projects will increase the value of your home by more than the cost of the project itself in the long term. A specific change might make your home more attractive or live-able to you, but the next owner may not agree, so it’s important to focus on improvements that will matter to prospective buyers as well.

Which Home Improvement Projects Give You the Most Bang for Your Buck?

What are the improvement projects that will offer the best return? There are obviously a lot of variables involved—not the least of which is the tendency for remodeling projects to take longer and cost more than expected—but you can still place the odds in your favor. Each year, Remodeling Magazine publishes its Cost vs. Value report, which compares the average cost of the 21 most popular remodeling projects against the value retained at resale.

Looking at the data for the Middle Atlantic region, which includes Pennsylvania, here are the top five home improvement projects that recouped the most value from their cost. Do note, of course, that trends tend to change every year, and in 2018 the report found that mid-range home improvement projects delivered the most value.

1. Manufactured stone veneer: Replacing the wooden facade of your house with one of manufactured stone can recoup 90% to over a 100% of its cost in terms of value.
2. Garage door replacement: Simply upgrading your garage door to a heavy-duty steel one is another great investment, again recouping 90% or more of its cost.
3. Entry door replacement with steel: Replacing your wooden entry door with a steel unit returns about 80% of its cost in terms of value, most likely due to the security aspect.
4. Additional wood deck: Adding a wooden deck is no minor project, but in addition to the additional space, it could return about 75% of its cost in value.
5. Minor kitchen remodel: The most expensive project on this list, and the one that many people jump to when they think of the words ‘home improvement’. It is still a worthwhile project, with the data showing that it may recoup about three quarters of its cost in value.