When it comes to renovation projects, you should always start by defining your reasons for upgrading, remodeling, or fixing. Is it to increase your enjoyment of the residence, make the home eco-friendly, upgrade the home’s function, or prepare the property for sale?
Here’s the thing―no one wants to invest tens of thousands of dollars on a renovation project and end up with zero monetary return when the time comes to sell their property. On the same token, many homeowners don’t have that kind of cash lying around. According to All Reverse Mortgage, many homeowners need third-party financing in order to move forward with their renovation plans.
Perhaps what most homeowners fail to understand is that not all home improvement projects are created equal. For example, installing lavish lighting fixtures and making high-end kitchen upgrades may not boost your property’s value in the same way that replacing your old windows and fixing your home’s roof would. In fact, some upgrades on your home can end up hurting your home’s value and sale price.
Therefore, if your main goal is to put up your property for sale in a few years, then renovating with a return on investment in mind would be the best approach. And that means making smart upgrades that offer the greatest ROI. Here are some renovation fixes projects that can actually improve your home’s value:
Garage Door Replacement
Anyone who’s ever experienced flooding in their home during a rainstorm knows too well how a faulty and shabby garage door can provide easy passage for water into the home. Also, the impact of a shabby door on a home’s energy efficiency can’t be overstated. On the other hand, an ugly garage door can mar your property’s overall appearance and curb appeal, thereby decreasing its value.
Curb appeal has been shown and proven to be a very important factor when determining a home’s market value. And since a garage door takes up a sizable portion of your home’s visual real estate― and is one of the first things people see― installing a new one will practically pay for itself. With an average cost of $ 3,695 and a resale value of about $3,491, switching out your old garage door will recoup about 94.5 percent of your costs.
A Minor Kitchen Remodel
It’s not uncommon for people to make high-end upgrades in their kitchen with the expectation that it will boost their home’s value. Unfortunately, many luxury upgrades do little to increase the sale price. In fact, a major high-end kitchen remodel could detract value from your property if you don’t make similar upgrades throughout your house. So, instead of focusing on expensive, high-end upgrades in your kitchen, consider a minor kitchen remodel that will give you a return on investment.
With an average cost of $23,452 and a resale value of about $12,206, a cosmetic kitchen makeover will recoup 77.6 percent of your costs, according to the 2020 Cost vs. Value Report. You can give your kitchen a whole new, modern look by simply refacing cabinets, applying a fresh coat of paint to the walls, bringing in new appliances, and replacing old fixtures and hardware. This will not just boost your home’s value but increase your family’s comfort and enjoyment as they cook, share meals, and entertain friends.
Add on a Deck
Homeowners are increasingly installing decks to improve their yards’ aesthetics, increase the livable space on their property, and add functionality to their homes. By accomplishing all these, a deck addition bolsters your home’s resale value. What’s interesting is that you don’t need a huge budget to install a new deck on your residential property. With a budget of about $14,360, you can complete a wood deck addition project and get 72.1 percent ROI. A composite deck addition would give you a 65.9 percent ROI on average.
Replacing Your Siding
You already know the role your siding plays in improving your home’s energy efficiency and maintaining your home’s integrity. As such, you must always take the time to maintain it so it can perform this very important role. However, over time, your siding may become loose, fade, warp or start rotting, thereby affecting your home’s curb appeal and property value. Fortunately, replacing your siding can improve your home’s overall appearance and increase your property’s resale value, giving you a 77.6 percent ROI (fiber cement siding) and 74.7 percent ROI (vinyl siding).
It’s easy to think of your roof as a covering that only protects your family from inclement weather and other elements. In reality, your roof influences curb appeal and your home’s energy efficiency. A 2020 survey by Remodeling Magazine found that installing a new roof can significantly boost a home’s market value. With an average replacement cost of $24, 700 (asphalt shingles) and a resale value of $16, 287, a new roof will give you a 65.9 percent return on your investment. For metal roofing, you can recoup 61.2 percent of the replacement costs.
The National Association of Realtors, on the other hand, indicates that a roof replacement project can recoup up to 107 percent of its costs at resale. So, if there are signs of damage, curling, buckling, or missing shingles, then redoing your roof is a valuable renovation. First impressions matter and a house with a brand-new roof are likely to sell faster― and at a higher value― than one with roof damage or leaks.
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