Home renovations with the best return on investment are a hot topic. A study by Harvard University has predicted that home improvement spending will increase by 8.6% in the coming year. With more people spending money on their homes and a boom in property, it pays to know the best projects to concentrate on. So which ones will bring you the biggest return on investment?
Below we discuss the home renovations that will provide the best return on investment.
Minor Bathroom Remodel
Minor bathroom remodel is at the top of the list for renovations with the best ROI. The bathroom and kitchen are two focal points that people will go to when buying a house. Improving them will not only increase the sale price but make them more likely to sell. A minor bathroom remodel can cost much less than a kitchen one making it a marginally better return on investment.
There are several modifications you can make at a low cost to make the room look fresh and new:
- Update the shower and head
- Change out cabinets and vanity fittings
- Switch the lighting
All this can be done for well under $10,000 and it can add just as much to the sale price. This return on investment will depend on the quality of the fittings and fixtures you replace them with.
Minor Kitchen Remodel
A minor kitchen remodel serves much the same purpose as a bathroom one. These are the areas people will naturally gravitate to when they want to buy a property. The only caveat is that a kitchen remodel may cost more for home sellers to achieve.
This is generally because of the cost of appliances. Replacing them can make a huge difference. Providing warranties and guarantees to potential buyers is also a large incentive.
After this, replace any worn cabinets and fittings. A coat of paint will finish the kitchen off. All of this should be achievable for under $15,000 and bring a return on investment that is almost 100%.
Curb Appeal and Landscaping
Curb appeal is the term real estate agents give to the first view of a property, which is usually from the curb. It is important as most buyers will decide if they like a property in these first few seconds. Any investment that improves a home’s value and curb appeal work on two levels.
You don’t need to go overboard with landscaping or add anything fancy. Some simple but effective things you can do that will have a huge impact are:
- Trim overgrown plants
- Keep the grass cut
- Put down fresh mulch
- Install flower beds
- Install pathway lights
An average garden will cost under $5000 to get a full landscape done, even if you hire a professional to conduct it for you.
Other remodeling jobs that will contribute to your curb appeal such as:
- Paths, and
- Exterior Facade
These may need attention but may cost more. Whether you should consider updating these areas depends on how much they detract from the overall appearance of your home.
Fiber Cement Siding
Another element that can decrease your curb appeal is worn siding. No matter how much work you do elsewhere, siding can give the building a dilapidated look. This can deter potential buyers.
Fiber cement siding is durable, long-lasting, and requires very little maintenance. It is semi-rigid with some flexibility, meaning it is easy to apply. This will give the home a fresh, finished look to it.
Luckily, replacing it is much cheaper than many people may think. An average-sized home can have the siding replaced and have trims included for under $20,000. However, material costs are quickly rising so this may be one worth doing sooner rather than later.
Vinyl windows not only offer a great return on investment for house sellers, they also provide energy efficiency that saves money. Cutting down costs in a world of rising energy prices is an attractive prospect for many buyers.
Look for windows that are low emissivity and energy efficient. Select a custom exterior finish so that the trim matches existing ones, and leave the interior trim to reduce costs. Around 10 windows can cost under $20,000 and provide over 60% return on investment.
If you live in an area where basements are common, ask yourself if you are utilizing the available space. A basement can often be the footprint of the house, yet people use it to store items and appliances with little thought to much else. When you can show potential buyers that it is a viable living space, then you can expect an increase in the value of your home.
Consider the following as a means of recouping around 70% of your ROI:
- Drywall the basement
- Add flooring, and
An attic conversion is one of the higher-priced projects on the list. Similar to a basement conversion, it adds to the liveable square footage of your home. This can be used as another bedroom, home office, or home theater.
An average conversion will cost around $40,000. Code and fire safety regulations will vary by local county and state, so make sure you check these before embarking on any projects.
Now that you know which home remodeling jobs have the best potential, decide on your future plans. Are you staying in the home or planning to sell? Match this to your budget and work out which improvements will benefit you the most.
Pensacola home sellers should make aDoor Real Estate their first stop. We can help sell or buy the perfect home. Contact us to speak with our expert staff regarding your next sale.