Start With The Front Door

Some home renovations bring you more bang for your buck than others.

The top-ranking home improvement? A new front door, which on average adds 96.6 percent of the amount you spent to the value to your home, according to Remodeling magazine’s annual Cost vs. Value Report for 2014.

But "it has to be the right front door," says Steven Aaron, owner of the Steve Aaron Realtor Group at Keller Williams Beverly Hills and one of the protagonists of the HGTV series "Selling LA." Keep in mind that sometimes painting the existing front door provides the same payoff.

Replacing old elements, such as doors, windows and siding, in general yielded a better financial return than bigger remodeling projects, such as additions. But as a real estate agent, I also know updated kitchens and baths still bring a significant payoff at resale time. 

But, like the front door, it’s important to do the right kitchen remodel. Adding a $75,000 kitchen to a $100,000 house is unlikely to yield $75,000 in value, although it may make you a happy chef. 

As a general rule, look to spend about 25% or less of the home’s value on a new kitchen and 12-15 % or an updated bathroom. Converting an attic into a bedroom ranked third of the 35 improvements in the Cost vs. Value report, returning 84.3% of the amount spent.

Replacing windows with French doors that open to the backyard is another popular, and not very expensive, renovation project. It makes a room feel bigger and gives you somewhere to go.

For people who plan to stay in their homes, investing in more energy-efficient heating and air conditioning systems and appliances, saves money all year long.

My advice: Don't look at reno projects as an investment strategy, but as the value of your lifestyle. 

Here are the home renovations that Remodeling’s Cost vs. Value study says will give you the biggest bang for your buck, as well as projects that generate the lowest return.

Renovations that bring the greatest percentage return on investment:

• Entry door replacement: 96.6 percent
• Deck addition (wood): 87.4 percent
• Attic bedroom: 84.3 percent
• Garage door replacement: 83.7 percent
• Minor kitchen remodel: 82.7 percent

Renovations that yield the smallest return:

• Home office remodel: 48.9 percent
• Sunroom addition: 51.7 percent
• Bathroom addition: 60.1 percent
• Backup power generation: 67.5 percent
• Master suite addition: 67.5 percent