A new glistening kitchen countertop, an outdoor fireplace, a luxurious new bathtub… Americans spend billions of dollars each year on home remodeling. According to the National Association of Remodeling Industry (NARI), about half of all homeowners say they are willing to make some sort of change to their living space. Before you tackle a new project, it is important to know that some projects have a greater return on investment (ROI) than others when it comes time to sell.
The following projects are the best long-term remodeling investments you can make:
Replacing Your Front Door:
Your front door is a part of the house that gets the most daily use. Year after year, it is the best bang for your buck in terms of transforming the look of your house and improving your home’s curb appeal. According to the NATIONAL ASSOCIATION OF REALTORS®, a new steel front door can recover 75% of its cost at resale. In addition, an old door can contribute to energy loss. Replacing the front door with a new energy-efficient door can help you save money on heating and cooling.
Adding home insulation to the attic has the highest ROI. Whatever you spend, mostly likely 100-120% of your money spent will be recouped. Plus, it is a relatively inexpensive and easy to project to do. Most homes already have some insulation in the attic space, so the upgrade may just involve adding more to get a desired level of thickness. The standard for insulation changes over time, so be sure to find out the “R” Value before beginning your project. Another positive to upgrading your insulation is that it shows future buyers that you took steps to make your home energy efficient. It’s a win-win!
Worn-out siding and other contributors to low curb appeal can lose you up to 10% of your home’s value, according to some appraisers. New siding, on the other hand, can greatly improve curb appeal and send a message to your future buyers that you took good care of your home. Vinyl siding is a smart choice because it is fairly low-cost and very durable. According to the NATIONAL ASSOCIATION OF REALTORS®, the median cost of a vinyl siding replacement job is $12,000 and 83% of the cost is likely to be returned. Fiber-cement siding is another popular option that yields a high return. It is higher in price, but does have a reputation for being higher quality.
A kitchen upgrade– minor or major– tends to be the most desired and highly satisfying remodeling project. A major kitchen remodel physically changes the design of the room, whereas a minor kitchen remodel might include refacing kitchen cabinets, replacing flooring or countertops, or buying new modestly priced, energy efficient appliances. Though the ROI of a kitchen upgrade is not as high as other projects (67%), the change greatly increases the owner’s enjoyment and happiness with his or her home. It is also a top consideration for what prospective buyers look for when searching for their next home.
New Garage Door:
Similar to replacing the front door, a new garage door greatly boosts your home’s curb appeal. There are many options to choose from that will add character to your home, from exterior contrasting colors to wood-looking embossed steel to glass window insets. An upgrade that replaces an older two-car, embossed steel door can run you around $2,300, but the ROI is estimated at 87%. Wood is considered to be more pleasing to the eye, but may be as much as 5x the cost of a simple steel door. If you want a good middle-of-the-road option, consider wood composite.
Patio or Deck Addition:
If you’re looking to expand your living space and up your enjoyment factor, patios and decks are a great idea. The cost can be as low as $8-$35 per square foot–much lower than the cost of a new addition. It is a great selling point to a potential buyer because it gives the homeowner a way to enjoy the exterior part of the property. Patios are usually made of stone-type materials, which creates a higher ROI since it’s often lower maintenance and longer lasting than a deck (typically made of wood or wood composite). Wood also tends to cost more than stone because of the ability to manipulate and personalize the design to your specific wants and needs. Before beginning the project, just be sure to take into consideration that a future buyer may not have the same taste as you.
Many other projects deserve a mention due to their moderate to high return on investment, including HVAC replacement, converting a basement to living area, converting an attic to bedroom, hardwood floor refinishing, adding a bathroom, replacing windows and new front landscaping. We hope you have enjoyed this list and will take this information into consideration before embarking on a remodeling project. When it comes time to sell, we would appreciate you considering us for your real estate needs. Contact The Southbound Group.