So you have your wish list ready for your home renovation? What projects bring the best return on investments from home improvements?
The items on your list might not necessarily be your best bet in terms of ROI when reselling your home. You might argue that you’d never want to sell your home because it is invaluable and has sentimental value, but a time will come when you would want to or have to move to a new neighborhood or just sell your home due to any personal reasons. You cannot speculate a lot at this point, but realtors and professionals in the real estate business say that it is always a smart idea to plan your home improvements and renovations considering the ROI.
We get that you want to have the luxury of a pool, but most homebuyers look at it as an extra maintenance cost rather than something of value. Something that is expensive won’t necessarily have great returns. Most of the times, it’s the smaller improvements that up the resale value.
1. Replace your Front Doorfront-door
According to the Remodeling Magazine’s Cost vs. Value Index, replacing your front door greatly increases the resale value of your home. The ROI for different doors is as follows
Steel door – 101.8%
Fiberglass door – 72%
Grand Entrance Fiberglass – 67.6%
Tip: Just make sure that your door matches the style of your home and does not stand out; otherwise, the ROI would fall.
2. Install a New Fireplacefireplace
When asked for the three amenities that buyers want in their homes, fireplaces ranked first. Homeowners can recoup 91% of the cost of installing a good quality fireplace when they sell their home.
3. Remodel your Kitchen
Buyers pay the most attention to kitchens and bathrooms. You don’t have to invest huge sums on renovating; a minor kitchen remodel would do the job. Upgrading appliances, refinishing surfaces and painting will cost less, but improve the resale value of your home. The trick is to spend less and wisely, not spending more.
Tip: Just pay attention to the design and selection of products when renovating your kitchen.
4. Turn your Attic into a Bedroom
Converting the attic into a bedroom adds great value to your home, with an ROI of 83%. Without having to alter the structure and layout of your home, you will gain living space and up your resale value.
Tip: Follow the rule of sevens when doing this – the half of a finished attic should be 7 feet high at least, 7 feet wide, spanning an area of 70 square feet.
5. Replace your Sidings
Replace old sidings with new ones; it could be vinyl, fiber cement, or foam-backed vinyl. There is only a little difference on the effect the type of siding has on the ROI, which is 80.7% on average.
6. Outdoor Living Space
You can expand your living space by adding an outdoor patio or deck – the trend is becoming quite popular here in the US. They offer a cost-effective way to expand your living space.
If you had any of the above on your wish list, bravo! But if you wish to invest in renovations and improvements that require a heavy wallet, consider the hefty expenses twice before making a decision that might not be fruitful in the long run.