Worst, and Best, Home Improvement ‘Investments’

You have a little extra cash and you want to improve the look or livability of your home. How do you evaluate your options?

One way to prioritize home improvements is to eliminate the types of projects that are least likely to get you a return on your investment, in the form of a more valuable home if/when you decide to sell. Recently, the website ‘Garage Living’ offered its take on the lowest remodeling ROIs, based on two factors: whether the renovation appeals to a broad range of buyers, and the cost of the upgrade.

First on the list is a sunroom, where homeowners can accommodate their hobby of growing plants. The website offers expert estimates that you are likely recoup somewhere between 45% and 50% of the cost when it comes time to sell your home. Sunrooms are expensive to build and maintain, particularly those which feature floor-to-ceiling windows. And many potential buyers have no interest in having a sunroom in their new home.

Second the list is a swimming pool—which can cost anywhere from $15,000 to $60,000 to install. The return on investment here is less than 25%, lower if you happen to live in a northern climate where pool use is limited to just a couple of months. If you want to save money by installing an above-ground pool, realtors say that this could actually decrease your home’s market value.

Third? Adding a bathroom (50-60% recouped costs) in part because it requires expensive plumbing and electrical work. Fourth? Converting your garage into a living space. Many buyers believe having a garage is extremely or very important for the parking and extra storage space. Estimate that you’ll only recover 60% of what you spend.

Finally, realtors say that a home theatre offers very niche appeal to prospective homebuyers, and chances are you will recoup 25-35% of your investment at sale.

What are some of the best investments? The Buzzfeed website says that improving the windows improves noise and temperature control, and adds curb appeal. Adding a hot tub, particularly in homes located in colder climates, can improve a home’s value, and if you put in a backyard barbecue with a countertop and mini fridge, it creates what feels like an additional room for entertaining. Finally, new faucets, toilets and a recirculating hot water pump for the bathroom save money and create an impressive appearance to prospective home buyers.