Top 10 remodeling projects for adding value to your home

A new steel door may not sound like the sexiest addition to your house, but it's one of the financially savviest. According to Remodeling Magazine's 2014 Cost V. Value report, homeowners who install a steel door can expect to recoup nearly 97 percent of the cost when the home sells.

Exterior work on a property, from new siding to replacing windows, dominate the list of projects that offer the biggest bang for your buck. They offer the largest return because a potential home sale can be made or broken on the exterior alone, real estate agents say.

"It's all about first impression, no question about that," said John Kmiecik, regional vice president for the National Association of Realtors and a Chicago-area real estate agent. "When I'm sitting with my buyers in my car and we pull up to a home, if it doesn't look halfway decent, my buyers in many cases say, 'John let's take a pass on this, because I just don't like the outside.' "

Buyers typically assume that if the exterior of the house hasn't been maintained, then the interior hasn't either, Kmiecik said.

So does a steel door really make that big of an impression? Not necessarily, but it improves security and offers energy savings through better insulation. That's the other reason exterior projects also push up the value of a home -- they tend to be practical. Unlike adding luxurious finishes to a kitchen that a new owner may not adore, new siding or new windows generally appeal to any buyer.

Although home exterior projects may deliver a greater return on investment than interior remodeling, all of the 35 home improvement projects listed in the survey returned value this year, thanks to rising home prices that exceeded increasing construction costs

10. Two-story addition

National average cost: $155,365

Return on investment: 71.8 percent

Remodeling Magazine includes a new first-floor family room and a second-floor bedroom with bathroom in this two-story addition, but any addition of square footage will add value, said John Kmiecik, regional vice president for the National Association of Realtors.

9. Bathroom remodel

National average cost: $16,798

Return on investment: 74 percent

Remodeling Magazine's quoted cost includes updating an existing 5-by-7-foot bathroom and replacing all fixtures, including installing a porcelain-on-steel tub with ceramic tile around it, new shower, standard toilet and new tile floor.

8. Basement remodel

National average cost: $62,834

Return on investment: 77.6 percent

Buyers are definitely impressed by finished basements, Kmiecik said. Remodeling Magazine includes in its cost a 20-by-30-foot entertaining area with wet bar and a bathroom. However, finishing your basement may not necessarily add value in an appraiser's eyes, as an appraiser typically counts living space above grade only, Kmiecik said.

7. Wood replacement windows

National average cost for wood: $10,926

Return on investment: 79.3 percent

New windows look sharper, insulate a home better, save on energy and, for buyers, avoid the cost and hassle of doing upgrades. Wood is the preferred trim finish, but other replacement window projects also pay off. A more upscale version costs $16,798 and has an ROI of 74 percent. Vinyl window replacements cost about $9,978 and have an ROI of 78.7 percent, while a more upscale version costs $13,385 and has a 76.6 percent ROI.

6. Minor kitchen remodel

National average cost: $18,856

Return on investment: 82.7 percent

As Remodeling Magazine defines it, a minor kitchen remodel consists of replacing cabinet fronts with raised-panel wood doors and drawers, along with new hardware; replacing wall oven and cooktop with energy-efficient models; replacing laminate countertops; installing a mid-priced sink and faucet; and repainting and replacing flooring.

The kitchen is always a good place to invest money, because it's the heart of the home, Kmiecik said.

A major kitchen remodel, meanwhile, would cost $54,909 and has a 74.2 percent ROI.

5. Garage door replacement

National average cost: $1,534

Return on investment: 83.7 percent

Replacing your garage door is another way to improve the exterior of your home. But while it's typically inexpensive, an upgrade isn't necessary unless your garage door is old, beat-up or a particularly visible part of your home. A more upscale version would cost $2,791 and offers an 83 percent ROI.

4. Attic bedroom conversion

National average cost: $49,438

Return on investment: 84.3 percent

Converting an attic to a bedroom, especially when you can also add a bathroom, adds value in the same way as a two-story addition. While it will not add to the square footage of the overall home, it does add another bedroom. That puts a home in another category, allowing sellers to charge more.

3. Fiber cement siding

National average cost: $13,378

Return on investment: 87 percent

While fiber cement siding is typically tougher and more fire-resistant than vinyl siding, it is significantly more expensive. Other siding replacement projects also came in strong. Vinyl siding replacement costs about $9,978 and has a 78.7 percent ROI; foam-backed vinyl siding replacement costs $14,236 and has a 78.1 percent ROI.

2. Wood deck

National average cost: $9,539

Return on investment: 87.4 percent

Only two years ago, wooden decks recouped about 70 percent of their value, having dropped during the recession. But with the economy improving and outdoor spaces becoming more popular, buyer interest is again piqued by a quality wood deck out back. The cost assumes a 16-by-20-foot deck with built-in bench and planter, stairs and railings.

A composite deck will also pay off, but not quite as much. A composite deck costs about $15,437 nationally and has an ROI of 74.3 percent.

1. Steel entry door

National average cost: $1,162

Return on investment: 96.6 percent

Because of their low cost and durability, adding steel entry doors typically offers the highest return on investment of all home improvement projects, according to Remodeling Magazine.