Which Interior Design Project Gets the Most ROI?

It’s the question that nearly every homeowner wants the answer to: Which interior design and home improvement projects increase the value of my home the most?

While there’s no one-size-fits-all answer, Owen Gilman, president of ISoldMyHouse.com, says, “Projects geared toward the homeowner’s particular tastes, like the addition of a home music studio, have the least positive effect on asking price. Projects that most anyone can appreciate, such as a revamped bathroom, tend to boost sales price the most.”

According to a survey conducted by the National Association of the Remodeling Industry and Sherwin-Williams, more than 35% of homeowners consider remodeling to be the most productive way to increase a home’s value. Which home improvements make the biggest difference?

Which Interior Design Project is Right for You?

1. Replacement siding

Although one of the less “sexy” projects, a $9,000 replacement vinyl siding project can increase the value of your home by $8,000, boosting your ROI by as much as 89%.

2. Major bathroom renovation

Among participants in the NARI and Sherwin-Williams survey, the bathroom is the number one choice for a renovation. If you put $13,000 into your bathroom remodel, for example, you can add as much as $11,000 to your your asking price – an 85% ROI.

3. Replacement vinyl windows

While not one of the first things a buyer might look at, windows are increasingly valued for improving a home’s energy efficiency. According to ISoldMyHouse.com, homeowners can gain an 85% ROI if they invest $10,000 into a replacement window job.

Another study in Remodeling Magazine found that homeowners are less likely to recoup their investment in a major bathroom or kitchen remodel than they are to get back what you spend on basic home maintenance like new siding. Data suggested that siding replacement recouped 92.8% of its cost, and replacing windows and roofs were also high on the list – returning 80% or more at resale.

Design Can Make or Break Your Project

If your house is designed well, it will appeal to buyers. Unless you’re looking to sell your home fully furnished, decor and furniture won’t increase the value of your home. Instead, invest in surfaces that are neutral and speak to a broader audience, incorporate custom built-ins in spaces that are lacking storage and hire an interior designer to help plan the interior layout and flow of your home.