Why do we renovate our homes? Is it because we want to keep up with modern trends, or perhaps some of our more functional home areas aren’t that functional anymore? Many people decide to renovate their home because they want to increase their home’s value, so when it comes time to sell, they’re selling it for more than they bought it for. To do this, you have to be strategic on which projects you decide to undertake. You see, each project will have a return on investment or ROI. That ROI is how much you increase your home’s value. So, which renovations will get you the most bang for your buck? Keep reading for the top five renovations that add value to your home.
Install A New Garage Door
On average, a new 16- by 7-foot garage door costs about $3,907 and has a 93.8% ROI. That means you’re increasing the total value of your home by about $3,663. Now, this is dependent on certain circumstances. Is your garage door outdated and/or damaged? Then replacing it could be an excellent move for you. For many people, the garage door is a focal point on the face of the house. By improving the appearance of your garage door, you’re also improving your overall curb appeal. If your door is dented and outdated, it’s going to drag the rest of your home down with it.
Build A Wooden Deck
The average cost of a new wooden deck is about $10,000. Multiple studies have estimated that the ROI for patios and decks can exceed 100% based on the size, materials used, labor costs, and geographic location. Remodeling Magazine’s annual Cost Vs. Value Report from 2007 found that adding a wooden deck is the most cost-effective home improvement project for a mid-range home. As mentioned, geographic location plays a significant role in how high your ROI will be. If your home’s location is in a warmer climate, you’re going to get more out of your investment. You can also drastically increase your ROI by reducing labor costs, and in terms of pure home resale value, wooden decks provide the best ROI. However, you must maintain your wooden deck to keep its high ROI.
Complete A Minor Kitchen Remodel
A kitchen remodel can cost anywhere between $4,500 and $60,000. To save money, you’re going to need to go with some cheaper alternatives and do some of the labor yourself, like painting or demo, but it is possible to keep your kitchen remodel in a reasonable range. The national average cost for a kitchen remodel is $25,500. This investment may be worth it because about 80% of buyers consider a newly updated kitchen an influencing factor in selecting and valuing a property. The standard ROI for a mid-range kitchen remodel is 50% and 60%. If you opt for a minor kitchen upgrade, the estimated ROI increases from 75% to 80%. For example, if you spend around $24,000, your ROI is between $16,800 and $19,200. Your geographic location also plays a role in how high your ROI will be. For instance, if your home is in the Pacific region, your expected ROI is 93%. However, the national average lies around 68%. Important kitchen updates that add value to your home include:
- Cabinet refacing and refinishing
- Update your countertops
- Add a modern tile backsplash
- Invest in new kitchen appliances
- Install new kitchen light fixtures
- Install a new kitchen sink and faucet
This home improvement project can add significant curb appeal, thus, increasing the overall value of your home. Siding has two main jobs: looking beautiful and acting as a protective barrier for your house. Damaged or old siding can lead to deterioration of walls, mold, issues with your home’s structural integrity, and high energy costs. The two main types of siding you can choose from are vinyl and fiber cement.
Vinyl is one of the most common siding options. Many people choose it because it’s cheaper to install and comes in many different colors. The average ROI for vinyl siding replacement is about 75%. However, you should know that vinyl siding is vulnerable to cracking, and once a panel is damaged, it must be replaced, not repaired.
Fiber cement siding is a good choice if you are looking for a durable wood alternative. This is a step up from vinyl. That means it will be more expensive, but it may be worth it with an average ROI of 83%. While this versatile material is fire resistant and protects against pests, remember, it will cost more and tend to hold onto moisture.
Replace Carpet with Hardwood
Hardwood is a clean, classy, and elegant flooring option that, when done right, can help boost your home’s value. When most people see hardwoods, their eyes light up. However, achieving a high ROI when replacing your carpet with hardwood floors depends on how the hardwoods match the rest of the house. You don’t want the floors to make the room look small or narrow, and the décor and other design elements throughout the house should complement the hardwood floors. If done right, you should expect an ROI of about 75%.
Are These Renovations Right for You?
When renovating your home, you should always think about your ROI. These renovations are perfect for people looking to boost their home’s value. However, just because these projects have the potential to yield a high ROI doesn’t mean you have to do them. Maybe your garage door is already in tip-top shape and doesn’t have to be replaced. Or perhaps you already have a wooden deck, in which case you must maintain it to keep the current value of your home. In any case, look at this list of possible avenues you can explore when it comes time to get your home ready to sell.
The Massey Team at Berkshire Hathaway HomeServices Select Properties
Get ready to sell your home with The Massey Team at Berkshire Hathaway HomeServices Select Properties. Real estate agents can help pinpoint which aspects of your home you can upgrade to boost its value. We can provide designers, contractors, and more leads to make your home improvement projects possible. Visit our website to view our listings or call our team members at (618)791-5024 or (618)791-9298 for more information.