You might be under the impression that completing a home improvement project will suddenly make your home worth more money. But that’s not necessarily the case. Experts in the industry have reported that while some projects will certainly do that, many will hardly move the needle on your home’s value at all. If you are looking to do a project that will add great value to your property without spending more out of pocket than it’s worth, read ahead and see what ones you might consider.
A bathroom remodel is your best bet
The best return on investment for home improvement usually involves one of your bathrooms. New fixtures and tile, new vanities, and a fresh coat of paint on the walls will go far in securing you a solid rate of return.
The amount you will get as a return will usually exceed 102%, meaning that for every hundred dollars you invest in the project, the value of your home will increase by $102.
These bathroom projects, like most of the others the experts have listed, will yield a higher rate of return if you do the work yourself rather than pay for the labor. But be certain that you pull all proper permits and know how to competently do the work. Otherwise, you’ll find yourself pouring more money into the projects than anticipated, and have a substantially lower ROI.
Landscaping is also a solid choice
Curb appeal goes a long way in selling your home. After all, the exterior of the house is the first impression that a buyer will get of it in person, and the better it looks the more interested parties you’ll have after the listing goes live. But great curb appeal will do more than just sell your home quicker. It can also add good value to it.
Experts report that patios and decks, carefully manicured shrubbery and trees, and even the addition of koi ponds will go a long way in making your home worth more. Conservative estimates are that you’ll have a 100% ROI on landscaping projects. This means that for every dollar you spend on these projects, you’ll have a home that is worth a dollar more.
Kitchen remodeling will usually break even
The kitchen is usually the most expensive room in the house to remodel. New cabinets and fixtures fetch hefty prices at the home improvement stores, and the new appliances that typically go with a kitchen remodel can keep it from being the best return on investment for home improvement.
But even if you only achieve the expected 92% ROI for the remodeling, a new kitchen and appliances will go a long way in getting your home sold faster. Many home buyers report that updated kitchens and bathrooms are among the top things they look for when seeking a new home.
You can increase the ROI if you do not need to replace any of the existing appliances, of course. But if they are older, or will clash with the aesthetics of the remodel, then you are perhaps better off replacing them.
Converting an attic into a bedroom will almost recoup the initial investment
That space above your main floors that you’ve been using for storage might be better served as an additional bedroom or two. If the attic has the proper dimensions, you could remodel it into sleeping quarters and increase the value of your home.
The ROI for this particular project is a little more tricky to determine, however. If the attic is already connected to the HVAC system, the ROI will certainly be higher. Running additional ductwork and possibly replacing your existing units to increase their output can cost a great deal of money.
But even if you need to make certain improvements to make the attic a bedroom, your home will certainly be worth more money. Part of what determines a home’s value when it’s appraised is the number of bedrooms it has. Though you might not see an increase in the home’s value above and beyond your investment into this remodeling project, you’re still sure to make it worth more money and more appealing to prospective buyers.
Other exterior projects will have an ROI that come close to breaking even, but fall short of the mark
Landscaping aside, you will not see a ROI that goes beyond the initial investment for most exterior projects. Adding a deck or patio will not come close under most circumstances, although these additions will go a long way in making your home more appealing to buyers.
Roof replacements and new siding serve both aesthetic and practical functions. They both make your home look a lot better from the sidewalk, perhaps luring in more interested buyers. But these also go a long way in protecting your home from the elements, keeping out moisture. They will certainly save you a good amount of money on heating and cooling, too. A well-insulated home uses less heat in the winter and a lot less air conditioning in the summertime. These energy cost savings, coupled with the added value to your home, make these projects a great runner-up for being the best return on investment home improvement projects.
Your next moves
If you are considering putting your home on the market, the guidance of a real estate professional can lead you in the right direction. An agent will be able to tell you what projects will make your home sell faster, add more curb appeal, and which ones will increase your home’s value. An agent like William Weeks has years of experience assisting sellers in the market, helping them get the most possible out of their homes at closing. Consider a consultation with William before you make the move to list the property yourself. You’ll find that his expertise will lead to a seamless and stress free sale.
