Most families don’t start thinking about renovations until they’re personally tired of how the guest bathroom looks or how hard it is to clean the kitchen floor. While it’s definitely fine to replace carpeting or hire a tile installer just because you’re ready for a new look, you can get more out of the renovation by considering how much it will improve your home’s value. Choosing renovations with a high return on the investment (ROI) will help you recoup part or most of what you spent when you choose to sell your home. Even if you’re planning to spend many more happy years in your current house, keep in mind that these four home renovations offer the best ROI.
Remodeling magazine, a trade journal for renovation professionals, places exterior updates at the top of the list for value. Of course, these kinds of remodeling projects only offer a healthy ROI if there’s an existing issue with the curb appeal of your exterior. For example, refinishing a dinged and peeling front door is going to pay off, while painting a perfectly good door won’t necessarily change the home’s value. These exterior upgrades include cleaning dirty siding, improving landscaping features, resurfacing cracked driveways, and fixing hanging gutters and other obvious issues. Depending on the exact type of exterior renovation, you could get anywhere from 50% to 92% back.
If you’re tired of looking at cracked linoleum and stained counter tops, a potential buyer is likely to feel the same way. You can get up to 83% of what you spend on kitchen remodeling back when selling your home. Aside from increasing the asking price you can put on the home during a sale, an updated kitchen also keeps buyers interested during an open house tour. The kitchen is the first room most buyers want to see, so if they are turned off by an outdated layout or design, they’re not likely to continue to the rest of the home no matter how nice it looks.
Looking for an easy renovation that doesn’t take very long, is relatively inexpensive, offers long-term energy savings while you’re still in the home, and is likely to give you back more than you spent on it? Add more or better insulation to your attic and you could end up earning an 116% ROI when you sell the home. Most insulation jobs cost under $1500 if there’s no need for roof or ceiling repairs, and you’ll also save money on heating and cooling thanks to the increased R-values.
Finally, consider the age and condition of your roof before putting your home on the market. While it costs between $10,000 and $20,000 to replace the roof on an average home, you can expect to get about 70% of those costs back in increased home value. You may not want to lose out on that 30% when you’re about to move out, but it’s likely that you’ll have to discount the home by the full cost of the replacement if you don’t update it before putting it on the market. It’s better to lose $3,000 to $6,000 by paying for the roof work yourself than discounting your home by $20,000 to please a picky buyer.
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