In the wake of the coronavirus pandemic, homeowners have turned their focus toward the home, embarking on renovations and remodels at an unprecedented rate. But not all projects are created equal. According to the Appraisal Institute, homeowners should prioritize cost-efficient improvement projects that improve their property's value. 

According to Remodeling magazine's most recent Cost vs. Value Report, the projects with the highest expected return on investment (ROI) are:

Garage door replacement - 93.8% of cost recouped
Manufactured stone veneer - 92.1% of cost recouped
Minor kitchen remodel - 72.2% of cost recouped
Siding replacement - 68.3% of cost recouped

Other projects with potential payoffs, according to the report, are window replacements, a deck addition and a steel entry door replacement.

The Appraisal Institute advises homeowners to consider holding off on big renovations if they're unsure how long they will be in their property. The longer a homeowner stays, the greater the opportunity to maximize the potential ROI.

Cost and ROI aside, home improvement projects are usually worth it if they improve the homeowner’s quality of life. For example, with the pandemic sparking an increase in work-from-home situations for many, now could be a great time to create or update home-office space, outdoor entertainment areas or at-home exercise studios.

The Appraisal Institute also encourages owners to upgrade elements of the home that will help ensure that the property meets community standards, reflects neighborhood norms and complies with local housing codes.

In addition to stimulating the building and construction sectors of the economy, which were significantly impacted by the recent economic downturn, home improvement projects can give you an important competitive edge in today’s low-inventory market should you decide to sell. Talk to a real estate professional about the types of improvements that will add the most value in your neighborhood.