6 Residential Remodeling Trends That Deliver the Highest Returns

As the housing market continues to be unpredictable, the homeowners in 2020 are still focusing more on home remodeling than taking another step up the housing ladder. The millennials are proving particularly keen on doing home renovation personally, and they are even known as the renovation generation. So, what are the trends that are emerging as favorites in 2020? a combination of both the latest technology and use of every inch of property are clear winners of 2020 remodeling trends. 

Have you been prompted to take a fresh look at some mess in your home? You might be wondering about replacing your window or remodeling your home in the best possible way to add value. However, jumping into residential remodeling is not for fun, especially when you want to make sure you can get the highest returns from your investment when it comes time to sell. To help you pinpoint the right remodeling projects, Remodeling magazine has introduced its annual cost vs. This report highlights how much several projects cost and their return on investment. 

The Remodeling magazine report compared the average cost of 22 remodeling projects and determine which retains its value at resale, based on a survey of over 3000 firms and real estate agents. Here are the top six residential remodeling projects in 2020 that deliver the highest returns. 

Manufactured Stone Veneer

Replacing vinyl siding with stone veneer on various parts of the home, such as the entryway, can be a huge curb-appeal upgrade. However, the average cost estimate is based on certain factors, such as installing 36 linear feet of sills, 40 linear feet of the corner, and one address block. It also includes the materials, including two different layers of a corrosion-resistant lath and fasteners and water-resistant barrier. This remodeling is a cosmetic improvement, and the accent design element is more likely to catch your potential buyers' eyes. Moreover, it allows you to recoup more than 95% of your renovation costs.

• Average Cost: $9357
• Average Resale Value: $8943
• Cost Recouped: 95.6%

Garage Door Replacement

A great-looking garage door is on the top of the list when it comes to getting cashback on your investment. The cost estimate for this type of residential remodeling is based on the removing and disposing cost of an existing sixteen-by-seven-foot garage door and replacing it with a new garage door with high-quality galvanized steel tracks and assumes you are reusing your motorized garage door opener. Besides, this garage door replacement will help you get back around 94.5% of what you have spent on it. It is one of the best remodeling trends to get the highest returns. 

• Average Cost: $3695
• Average Resale Value: $3491
• Cost Recouped: 94.5%

Minor Kitchen Remodeling

Everyone wants their kitchen to be remodeled after a certain time. Creating a modern-looking and more functional kitchen can add more than just value to your home; it can even enhance your enjoyment level of everyday activities like cooking, sharing meals with your family, and entertaining your friends. 

Moreover, the potential buyers also look for this kind of renovation. At the time of sale, you will recover a little more than 77% of the cost of a kitchen remodeling, on average. You might replace appliances with new, higher energy-efficient models during this remodeling, replace the old cabinets with the new shaker-style wood panels, replace hardware, install a new sink and faucet. Besides, you can also add new flooring and repaint the kitchen walls. 

• Average Cost: $23452
• Average Resale Value: $18206
• Cost Recouped: 77.6%

Siding Replacement (Fiber Cement)

Old siding can make even the nicest home look worn-out and old. Homebuyers usually look for the homes with new siding. For an average home, replacing 1250 square feet with a unique fiber cement siding will cost over $17000. You will get back a little more than three-quarters of the investment at the time or resale. Besides, this remodeling includes all 5/4 and 4/4 trim. 

• Average Cost: $17008
• Average Resale Value: $13195
• Cost Recouped: 77.6%

Siding Replacement (Vinyl)

Vinyl siding can be a better option to freshen up a home's exterior and provide an aesthetic appeal. Besides, it is also a budget-friendly solution as compared to fiber cement siding replacement. The average cost of replacing 1250 square feet siding with the new one will be $14359. You will be able to recoup more than 74% of your investment upon resale.

• Average Cost: $23452
• Average Resale Value: $18206
• Cost Recouped: 77.6%

Window Replacement (Vinyl)

When it comes to old window replacement with new vinyl windows, you can recoup a little more 72% of your invested cost.  You will get this if you install low-E, simulated-divided-light vinyl windows that feature a customized color exterior finish. Low-E means low emissivity; you will be able to save energy. 

While replacing the windows, you need to make sure that the exterior trim matches the existing ones, and the interior trim is not touched at all. However, this type of renovation is usually a top priority of the home buyers. You need to make sure you provide them with this. The average cost of this type of residential remodeling will set back around $17000. 

• Average Cost: $17641
• Average Resale Value: $12761
• Cost Recouped: 72.3%

Why are remodeling costs higher and values down?

The Remodeling magazine report has also indicated an overall uptick in the costs for all the projects and the downturn in the perceived value. However, by comparing the report with last year’s report, it revealed that the homeowners would recoup 66.1% of the money they invested for the remodeling project, but in 2020, the overall average amount dropped to 63.7%. It is believed that this difference over the past year may be related to the customer's confidence.

If you wonder which remodeling project sites in the last place on the 2020's list, it is the same as the year 2019—an expensive master suite addition, which costs $282062, while its resale value is only $145486. The cost recouped is 51.6%. 

According to the cost/value report editor, the people might be confused about buying the property due to the less-than-steady world markets and the future trade wars that could unfold.  Besides, the editor Clay DeKorne also notes that the personalized home remodeling projects like kitchen and bathroom are not appealing to most people. One person’s tile obsession could be another's worst nightmare. Your potential buyer may end up ripping out all or your carefully curated work. 

Why is it essential for homeowners to consider home remodeling?

Residential remodeling not only provides the home with a fresh look, but it can also boost the home's resale value. When you sell your home, the buyers will want a clean and well-kept home with all the modern updates ready to move in. Besides, if you live in a competitive market, your house might be competing with other upgraded homes to grab the buyer's attention. 

Moreover, when you refinance the home, remodeling will be considered when a property inspector will evaluate your home's current market value. Having a higher home value means you will have a lower loan-to-value ratio and more equity. That is why it is essential for a homeowner to consider home remodeling before selling it.