Is Exterior Remodeling a Smart Investment?  

Key Takeaways 

• Home improvement budgeting starts with defining the project scope, goals, and spending limit. 
• Homeowners should prioritize necessary repairs and high-value improvements before optional upgrades. 
• Researching material, labor, and installation costs helps create a more accurate renovation budget. 
• Comparing multiple project estimates can reveal pricing differences and help homeowners evaluate overall value. 
• A complete home improvement budget should account for financing options, payment plans, and available cash. 
• Setting aside contingency funds helps cover unexpected renovation costs discovered after work begins. 
• DIY work, refurbishing existing materials, and careful project planning can help reduce overall home improvement costs. 

Home improvement shows on TV often feature dramatic before/after transformation of interior projects, like a shiny new kitchen or a spa-like bathroom. But what about exterior home remodeling projects, like new windows or siding? These may at first seem to be purely cosmetic upgrades, but they are home improvements that add value to your home—sometimes even more so than interior projects.  

“Exterior home improvement projects are more than just about enhancing curb appeal, although that’s certainly a benefit,” says Josh Ventry of Universal Windows Direct. “Most importantly, they protect the structure of your home and everything inside it. And when you choose energy-efficient doors, windows, and siding, you can also save money with lower utility bills.” 

In this post, we’ll discuss five of the most popular exterior home remodels that add the most value. You’ll have a good idea of what projects to prioritize and which can wait, as well as which ones can enhance your enjoyment of your home now, not just increase value at resale. 

What Cost vs. Value Means for an Exterior Project  

There’s a lot of talk in the home improvement world about cost vs. value, and rightly so. A project’s ROI—return on investment—is an important consideration for homeowners, especially those planning to sell their home in the near future. Here’s how to calculate the ROI of any project:  

Cost recouped at resale ÷ Actual cost of project = ROI 

While the cost of the project can easily be found by looking at the final contractor’s invoice, it’s nearly impossible for a homeowner to determine the cost recouped at resale on their own. That’s why publications like The Journal of Light Construction’s Cost vs. Value Report exist. This annual report analyzes the average costs for over two dozen interior and exterior remodeling projects and compares them with their resale value to determine the ROI in 119 U.S. markets.  

While actual ROI depends on a number of factors that we’ll discuss in a moment, the Cost vs. Value Report and others like it serve as an excellent tool for homeowners to make educated decisions for their home. 

Value Beyond Resale: Comfort, Efficiency, and Curb Appeal  

Of course, if you’ve recently moved into your home, resale is likely far from your mind. In this case, the best ROI home improvements will be based on your own enjoyment. You might not recoup any of the money you spent until you sell your home, but you will be enhancing your home’s comfort and curb appeal, which can add value. And by choosing the most energy-efficient options for windows, doors, and siding, you can save money with lower monthly utility bills. 

Comparing Five Exterior Renovations on Cost and Return  

Let’s take a closer look at the cost and return of five common exterior renovation projects.  

Window Replacement Cost vs. Value 

Vinyl replacement windows regularly top homeowners’ wish lists for enhanced security, energy efficiency, and curb appeal. They’re also a consistent top performer in terms of ROI. The latest Cost vs. Value Report indicates an average replacement window ROI of 76%.  

Entry and Patio Doors Cost vs. Value 

Like new windows, a new entry door not only enhances curb appeal, but it increases home security. According to the JLC’s Cost vs. Value Report, a new steel entry door can result in a whopping 216% ROI, on average. 

According to Angi, sliding glass doors have an ROI of up to 65%. At Universal Windows Direct, we also know well that energy-efficient doors can save you money on heating and cooling costs. Choosing high-quality materials will increase the lifespan of the door so you can continue to save money over time. 

Siding Replacement Cost vs. Value 

Does new siding increase home value? It certainly can. Newly installed siding provides an instant boost in curb appeal, but more importantly, it protects your home’s exterior. It’s a big project that offers big results: vinyl siding offers an average of 97% ROI. Fiber-cement siding is more expensive upfront, but it can result in an 114% ROI, on average. When you work with Universal Windows Direct, we’ll help you consider all options based on your budget and home needs. 

Roofing Replacement Cost vs. Value 

The roof protects your home’s structure from the elements. While an average ROI of 68% for an asphalt roof is a bit lower than that of doors, windows, or siding, a new roof can save money by lowering your insurance premium. It also provides better insulation for your home, especially when you use energy-efficient materials. 

Gutters Replacement Cost vs. Value 

Gutters aren’t the most exciting exterior project for most homeowners, but don’t underestimate how gutters affect curb appeal and home value. Well-maintained gutters are vital to protecting your home during rain and snowstorms. There’s not much solid data on ROI for this project, but when you consider that a new gutter system can avoid costly water damage down the road, it’s an investment that can pay off. 

See the payoff before you spend a dollar. Browse real exterior projects from Universal Windows Direct to see how new windows, siding, gutters, and roofing change a home’s look and value. It is the easiest way to picture what’s worth it for your house.  

What Impacts the ROI on an Exterior Project? 

As you can see, not every project has the same ROI. And the ROI potential for projects will vary greatly depending on some key factors.  

Material Quality and Lifespan  

The quality of the materials you choose will impact both the upfront cost and the lifespan of the product. Top-quality vinyl windows will cost you more, but they can last upwards of 20 years or more. Choose a less expensive model and you not only risk a shorter lifespan, but also reduce energy efficiency, which will result in higher utility costs over time. 

Warranty Coverage 

The warranty coverage of your new home improvements can significantly affect your ultimate return on investment. If your coverage is weak/not for a long time, you might have to cover some repairs out of pocket—which adds to the cost part of that equation. Some warranties are even transferrable to the next homeowner—which can increase it’s ROI. 

Climate and Region  

A region’s climate can greatly influence what homeowners are looking for in a home. In seasonal climates that see frigid winters and sweltering summers, energy-efficient windows and doors are key. In areas where there are punishing tropical storm seasons, siding and roofing are a priority. When considering potential project ROI, it helps to look at regional data rather than national data to make an informed decision. 

Energy Efficiency and Long-Term Savings  

While energy-efficient upgrades can enhance home value, the real ROI comes from saving money on utility bills while you’re still in the home. For example, ENERGY STAR-rated windows and doors provide optimal insulation—a very good thing whether you’ve got the AC or heat cranking. 

Professional Installation vs. DIY 

Even advanced DIYers will want to leave extensive exterior projects to the pros. For one, it’s a safety issue, especially when it comes to climbing ladders. You might have purchased a top-of-the-line product, but if it’s installed incorrectly, you’ll shorten its lifespan.  But it also has to do with warranties. You may void the warranty of windows and doors with a DIY installation. 

How to Prioritize Exterior Improvements That Add Value  

If you’re like most homeowners, then you’ll want to know how to prioritize home exterior projects according to your budget and timeline of staying in the home. Here are some guidelines as you’re mulling over exterior renovation ideas: 

• Tackle the urgent projects first. If your home exterior is damaged or degraded in a way that puts your personal safety and/or property at risk, then the project is urgent. But if the proposed improvement is something that’s more of a “nice to have” than a “must have,” then the work can wait until you’re ready. 
• Choose the best project order. Regardless of your budget, there are some projects that make sense to go first to avoid damage. For example, don’t do the siding first if you need a new roof and gutter. Leaks or construction work could cause damage to your new siding, harming your investment. 
• Consider how long you plan to own the home. If resale is imminent, then prioritize those projects that will have the best ROI or at least impress buyers to make quicker offers. There are many ways of increasing curb appeal on a budget. If you’re just settling down, then choose the projects that will increase your enjoyment of the home. 

Plan Your Exterior Renovation with Confidence  

Universal Windows Direct is your partner in all things home exterior. Despite our name, we go beyond windows to offer doors, siding, roofing, gutters, and other installations for your home exterior. Whether you’re taking it project by project or are ready for a full exterior overhaul, we’ll guide you through a plan that fits your home’s aesthetic, as well as your budget and timeline. Schedule a free consultation to get started with our expert team and we’ll help you get the most out of your investment. 

Get real numbers when you are ready. When you want to move from dreaming to planning, a free in-home consultation gives you honest costs for your house and the value each project returns. No pressure, no obligation.  

Frequently Asked Questions