Home sellers and home buyers frequently ask me what home improvements or “upgrades” are worth the investment. I think that any home improvement that the homeowner will enjoy is generally worth the time and expense but there are certain updates that will yield a higher return on investment than others.
According to the 2015 Texas Remodel Valuation Report released by the Texas Association of REALTORS®, the most profitable remodeling projects were dominated by those that boosted a home’s curb appeal.
TOP HOME UPDATE WINNERS IN TEXAS
Steel entry door and garage door replacements ranked among the top five projects in most markets, recouping up to 113.2 percent and 107.6 percent of recoup costs, respectively. Siding, roofing and window replacements – and a new project, stone veneer accents – also frequently yielded higher returns than costs
Big ticket remodels, like sunrooms, tend to be the least profitable updates. Last year, sunrooms only recouped between 29% to 51%.
Siding replacement ranked in the top five most profitable projects nationwide and in Dallas, El Paso, Houston, San Antonio and Midland, recouping up to 108.2 percent of the total project cost.
Stone veneer accents ranked as the most profitable project in the West South- Central U.S., Austin, Houston and McAllen, recouping up to whopping 123.7 percent of the total project cost.
Roofing and window replacements continue to recoup up to 114% of the replacement cost. In addition, outdoor living space such as deck additions also recoup up to 116% in the Southern portion of Texas. Roofing replacements were the most profitable project in the Dallas area, recouping 114.5 percent ($20,909) of the total project cost. This project also had the largest year-over-year gains in recoup costs, increasing 51.8 percent from 2013 to 2014.
The Top Home Update Losers in Texas
Sunrooms, as mentioned before, are one of the top losers in Texas, followed closely by home office remodels and master bedroom remodels regardless of the scale of the update. The less practical and the more costly additions consistently yield the lowest return on their investment.