4 Home Improvement Projects Offering High ROI
As with any investment, not all of them will give an equal return on investment (ROI) as others will. Homeowners often want to make some improvements to enjoy for themselves while they reside in the dwelling, but they also want to get a bit back on that investment should selling become a possibility. We've compiled a list of wise upgrades and improvements that offer the best resale value according to Remodeling's Cost vs. Value Report.
Decking Additions That Pay Off
Decking has come a long way in recent decades, and while it's still a traditional favorite, the popularity of PVC and composite decking are taking yards by storm. Wooden decks with railings are generally more affordable than PVC or composite depending on the type of wood selected. However, they tend to recoup almost 83 percent of their value for owners.
Composite decking's primary differences from PVC materials are that it can be stained and requires more maintenance. While PVC materials cost more upfront by as much as 25 percent, it tends to appeal more to today's home buyers. Both materials see about a 90 percent return on value, and they resist fading, warping, cracking, and insects—a huge asset over wood decking.
Kitchen Remodels Are in High Demand With Buyers
Many people are aware the kitchen is the most important room when selling a home. Most buyers are looking for a modern kitchen with a functional workspace, quality tapware, and plenty of cupboard space.
High-end homeowners should give strong consideration to ensuring their kitchen's features live up to those throughout the rest of the abode. In other words, it's not a good idea to do a cheap update that can actually decrease home value. That being said, the average homeowner will see the greatest ROI with a minor kitchen remodel versus a major one.
The Cost vs. Value Report estimates that minor upgrades in the kitchen average just over $20,000 with installations such as:
- Cabinetry Replacement
- Marble or Quartz Countertops
- Sink and Hardware Upgrades
In addition, homeowners should replace any yellowed or peeling laminate countertops with something stylish and easy to clean, like granite slabs. If your cabinetry has an outdated feel, you can make them new again with a few coats of fresh paint and new hardware. Kitchen renovations are almost always worth it as they are routinely responsible for boosting resale values.
These efforts are reported to bring back an average of 80 percent of the investment costs when selling.
Boost Curb Appeal
Improving your curb appeal with an overall landscape upgrade can go a long way towards boosting the marketability of your home. Curb appeal doesn't have to be expensive to be effective. It might be something as simple as a little maintenance, such as scrubbing your driveway, keeping lawns trimmed, and power-washing the exterior walls. However, if you're in a condo, these maintenance tasks should be part of your HOA fees, which vary from state to state.
Installing a brand-new front door is an often overlooked yet inexpensive idea that instantly improves your home's appearance. For a more finished look, you may decide to paint the walls, fix cement cracks, and plant some flowers in the garden.
Exterior Siding Replacement
Adding curb appeal is an easy way to increase home value, and the easiest way to boost the appearance and get an excellent return on investment is new exterior siding. Three of the most popular styles of home siding today are stone veneer, Hardie plank, and vinyl siding, all of which are resilient and low-maintenance options.
Stone veneer offers the beauty of natural stone without the high cost and is comparable in price to Hardie siding at an average of $15,000. Vinyl, tends to be a bit less expensive. In addition to restoring the beauty to the home's exterior, new siding can reap sellers a nearly 77 percent ROI according to the Cost vs. Value Report.
Update Bathrooms with Accessibility Features
Another in-demand upgrade lies within the loo, as more buyers are conscious of having adequate access to bathroom facilities. Accessibility features are highly attractive for buyers seeking a forever home to retire in, those with disabilities and there's no telling when an accident can create temporary physical challenges.
The report estimates that it can cost about $17,000 to make bathroom accessibility upgrades such as:
- Walk-in Curbless Shower
- Adjustable Showerheads
- Walk-in Tubs or Seating
- Adjustable Mirrors
- Low Cabinetry
- Grab Bars
- Wheelchair-height Switches and Outlets
These accessibility upgrades can bring as much as 70 percent ROI when selling, as can a general minor bathroom upgrade.
Add a Second Bathroom
Homes with multiple bathrooms are in high demand and are more appealing to most prospective buyers. In fact, even a small second bathroom with just a toilet and sink can greatly improve a home's resale value. If your home only has one bathroom, adding another can help you recoup a large chunk of the investment, especially if you can find room for an extra bathroom without altering the layout of your plumbing majorly.
Check the original plans for any underused spaces like closets or beneath stairs located close to existing pipes. Like any renovation project, the costs involved with adding a second bathroom will depend largely on the work involved and the accessories chosen.
Transform Your Backyard
For a significant difference in your home's sale price and overall appearance, look to sprucing up the landscaping in the backyard. The exterior of your home is an important area for first impressions. You can decide to choose landscaping with a few subtle and classy changes or go as big as your money will allow making your backyard stand out from the pack.
Not only will adding a wooden deck, backyard patio, or outdoor kitchen likely increase your home's value, but it will also add to your comfort and enjoyment until you decide to sell. It's no wonder that many higher-priced homes have backyard swimming pools and are ready-made for entertaining guests.
Upgrade Your Appliances
Replacing all of the appliances in your home with the latest models is one way to all but guarantee seeing an increased return on your investment—especially modern stainless steel appliances, as they're typically viewed as higher-end products. If you want the best-looking stainless steel appliances at the lowest costs, go for entry-level models or search for floor models at outlet stores. Just make sure that you're upgrading to appliances that are also more energy-efficient, as many buyers will be looking at how green your home is.
Need Advice About High ROI Home Upgrades?
It can be a costly mistake to choose the wrong renovation projects that buyers simply aren't willing to pay more for, or to ensure that projects are done up to code and will pass a home inspection. Contact a local real estate professional for guidance concerning smart updates that you'll enjoy and that buyers want in today's market.