The most important question every homeowner should consider is whether a renovation will pay off and boost the value of their home. Although you may not be planning to sell your home anytime soon, remodeling projects do add value to your home, improve your family’s quality of life and attract future buyers. The payoff varies since some home improvements are determined from neighborhood to neighborhood and regionally as well.
You do not want to have an overblown renovation project that makes your home the most expensive house in the neighborhood. It’s important that the style, size, and quality of the renovation fit the rest of the house. If you plan on selling your home within the next five years, keep potential buyers in mind before you start on any major remodeling job.
So, what are the top-ranking home improvements?
Since the kitchen is the heart of the home, it is the single most important room in the house relating to valuation. According to HGTV, kitchen and bathroom improvements increase the value of your house more than most renovations. It’s essential that you invest in a modern, fresh and desirable kitchen. Modern cabinetry, under cabinet lighting, backsplash tiling, upgraded countertops, modern faucets and new appliances will all significantly increase the value of your home.
ROI is 75-100%
Similarly, bathroom renovations are the second most important room in the home in terms of return on investment. Today’s trends lean toward people remodeling the space into a spa-style bathroom. The bathroom can be one of the most expensive rooms in the house to renovate because the costs depend largely on the design, products, types of additions and accessories you want to add. In addition to the expensive elements involved, such as cabinetry, tile, and fixtures, there is the cost of hiring a professional contractor who is knowledgeable about design, plumbing, tiling and electrical work.
ROI is 75-100%
There are other top-notch home improvements that add to a home’s value, such as replacing old elements like doors, windows, and siding. These improvements, in general, yield a better financial return on investment.
When a buyer or appraiser looks at your house, the first thing that catches their attention and focus is your front door. Upgrading your front entry can give your house the appearance of solidity and quality. This feature has a positive impact on their opinion of the home and increases its value. Adding French doors leading to the back yard or deck can also increase home value.
ROI is 96.6%
Windows are an expensive proposition, but if your windows no longer enhance the facade of your home, shield it from the elements or filter out noise, then it’s time to update them. Today’s windows are energy efficient and can help you save on heating and cooling costs. They can decrease your costs by up to 25% while improving the aesthetics of your home by complementing your home’s theme and design. They are relatively low maintenance and more durable than wood.
ROI is 80%
Although siding may not be glamorous, it is one of the best home improvements for adding value to your home. Here is your chance to make a great first impression by updating your old siding, or adding new, because the exterior look sets the tone of what potential buyers will find inside the house. Vinyl siding is an affordable solution to sprucing up the exterior of a tired looking home.
ROI is 92.8%
In today’s competitive housing market, renovations offer a relatively affordable means to boost the value of a home. Whether the upgrades are do-it-yourself projects or professionally done renovations, remodeling will make a house not only more appealing to buyers but also offer a great return on investment.
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