8 Home Renovations that Offer the Best ROI
All homeowners aim for a good return on their investment when spending money on home improvements. Home ownership is a huge investment. Making smart improvements that will add lasting value to your home is important. When determining which projects to focus on when maintaining a home, or getting it ready to sell, not all improvements are equally as valuable. If renovations are prioritized and done well, the return on investment will be well worth the trouble.
What is ROI (Return on Investment)?
ROI measures the performance of your investment. The efficiency of the investment depends on the returns earned on each one. Achieving the most ROI depends on maximizing profits and choosing the home improvements that add the greatest value to your home.
Home renovations make any homeowner happy once completed, but some updates add more value to the home than others when it comes time to refinance or sell a home. Some home improvements are expensive, so it is helpful to understand the ROI before taking on a project. On average, home renovations provide a 70% ROI. The projects with the best ROI are the improvements that add functional space and square footage. The projects that add very little value are luxury upgrades, aesthetic improvements, or projects that are out of the norm from the homes in that neighborhood.
Renovating a home is a valuable way to target potential clients in the resale of your home. It boosts the overall value of your home, while also improving the appearance and functionality of the space. It is important to offer buyers a balance of curb appeal, a warm and inviting layout, and an upgraded look and feel to the home. Let’s take a look at 8 of the best home improvements that will help boost your ROI.
8 Home Improvements That Offer the Best ROI
Landscaping – New landscaping offers curb appeal and can be just what the home needs to boost the aesthetic appeal of the house. The best landscaping designs are simple, trimmed, and clean. It is important to look nice, but it shouldn’t suggest that a great deal of work must be done in order to maintain that look. Curb appeal helps sell homes. A home buyer’s first impressions weigh heavily on their buying decisions. There are some simple improvements that can be done to wow prospective buyers. First, cut back trees and shrubs. Trees and shrubs should accent and enhance your house, not hide it. Keep the lawn manicured and plant a few pops of color. A fresh layer of mulch can completely transform a property’s exterior. To get a full picture of the home’s curb appeal, drive down the street and take note of the first thing that stands out upon pulling up. These items are what others will notice, as well.
Bathroom Remodel – One of the greatest ROI happens when remodeling the bathrooms. Minor or major bathroom remodeling can take place. Major renovations can be very costly, so making minor improvements in every bathroom may make more sense. In most cases, it is not necessary to gut the entire bathroom, but giving each room an updated look can make a huge difference. Start by updating the lighting and making sure that the mirror is in good shape and well lit. A fresh coat of paint that is soothing and in a neutral shade is a cost effective way to add value to the room. Simple changes to the cabinet hardware, towel bars, and switch plates are easy to do and add to the appeal of the bathroom. Clean and replace the grout. Dirty grout is a huge turn off and suggests that the bathroom was not maintained. Leaking faucets and cracked tiles should be replaced as well. Upgrading the bathrooms, especially the master bath, can help convince homebuyers that they are making a good decision.
Kitchen Remodel – Upgrades in the kitchen can make a big difference. Replace old appliances with new models that are energy efficient. Consider appliances that fit your home’s style. Rather than replacing cabinets, try refinishing the existing ones. With a fresh coat of paint or stain and new hardware, they can look brand new. Flooring in the kitchen must be durable. There are lots of great options such as ceramic, stone, or porcelain. However, today laminates look amazing and are easy to install. A fresh coat of paint, that flows with the color scheme in the rest of the house, is crucial. Also, make sure updated lighting is installed in the kitchen. Buyers are looking for an open concept kitchen with a lot of space to host and cook.
Front Door Replacement – The entry door is one of the first things a buyer sees when visiting the home. This is the homeowner’s opportunity to make a great first impression. In addition to the landscaping, the front door is one of the first things a buyer sees. Replacing the door is an easy way to improve the curb appeal of the house. If replacing the door is not an option, then a fresh coat of paint will go a long way to improving the fresh look of the house.
Basement Remodel – Anytime you can increase the usable living space of a home, you will increase your ROI. A dark and dingy basement can hurt the prospects of a sale. Many home buyers expect basements to be functional and livable areas. Adding drywall, flooring and a coat of paint offers more square footage of living space to the home. A dark and dreary space can be transformed into a recreation area, kids play area, organized storage space or retreat for visiting guests. It is an unexpected pleasant bonus to buyers and they love the options that a finished basement provides.
Window Replacement – Nothing can make a home’s exterior look better than a brand new set of windows. They improve the look of the house on both the inside and outside. New windows must be energy efficient. The installation of proper windows has the potential to save homeowners a lot of money on energy bills. Window frames can be made from wood, vinyl, aluminum, or fiberglass. Vinyl offers a number of advantages, such a low cost and low maintenance, and comes in a variety of colors.
Garage door Replacement – When seeking a good ROI, replacing your garage door is high on the list. This is another contributor to the curb appeal of the house. In order to get the biggest bang for your buck, it is important to invest your money wisely by choosing a design that fits the architectural style and price point of the home. Remodeling magazine’s 2018 Cost vs. Value Report finds that replacing a garage door not only improves a home’s curb appeal, it also generates the best return-on-investment (ROI) when it comes to recouping cost at resale. The report indicates that spending $3,470 for an upscale garage door replacement can yield an estimated $3,411 at resale – a 98.3 percent return on investment.
Home Office Space – The recent pandemic drastically changed what homeowners value in their homes. Number one on the priority list is a home office. Carving out a dedicated home office space will add value to any home. Many experts believe that the majority of the workforce in many key sectors will be working from home by the end of the decade. Whether you tend to bring work home once in a while or work from home every day, you just cannot ignore the significance of a home office any longer.
Deep cleaning the inside and outside of a home is an essential. A dirty exterior is something that should not be ignored. Power washing your home does not take long but will have a significant impact. Paint is an easy and inexpensive way to update your home. Stick to neutral colors that appeal to the broadest audience. In order to earn top dollar for your property when selling, it is important to address all of the small issues that could scare away prospective buyers. Little problems like broken doorbells and leaky faucets can make buyers wonder if your property also has bigger issues elsewhere. Inspect all of the major systems of the house, such as heating, plumbing, foundation, roofing, and electrical systems.
The perfect time to buy or sell a house depends on your finances, goals, and personal timeline. The real estate timeline is not definitive. The first step is to get your finances in order. This will set you up for a successful experience. You should never rush into the market at any particular time simply because you think it is the best time. The perfect time to buy or sell a home is when you are ready.
Looking to renovate your home to get it ready to sell? Or looking to buy a home that is fresh and newly renovated? A good agent will set realistic expectations by explaining the availability of listed homes and the level of competition you’ll face with other buyers. He or she will help you stay grounded within your budget and goals. The right agent will have strong market knowledge.
In the competitive market we have today, the right real estate Realtor and Broker makes a huge difference.
Boyle and Kahoe Real Estate was founded in April 2019 by Jessica Boyle Tsottles and Robert Kahoe. The brokerage foundation is based on a strong passion for real estate and helping connect clients to the right properties. Jessica Boyle Tsottles is an experienced Realtor in Harford County, and Robert Kahoe is an experienced attorney focusing on real estate, estates and trusts. Together, the two are blending their vast knowledge bases together to start a brokerage that will be able to handle any real estate transaction. Both with local roots to Harford County for over 100 years, they are the area’s best experts!