Home renovations are almost always rewarding, whether it’s an old, traditional house or a modern, stylish one. Adding customized, outstanding features to different rooms and structures in your home can improve its aesthetics while boosting its market value significantly.
However, not all renovation projects attract the same returns on investments (ROI), which is why you need to understand where to spend your renovation money. Below, we’ll look at five main renovation projects that drive the highest ROI so you can determine which to focus on in your next upgrade project.
Kitchen Renovations
Your home’s kitchen is one of the important rooms that sell a home. Buyers often check the condition of a home’s kitchen and bathroom before deciding to buy. Even minor but strategic kitchen improvements can significantly boost your home’s value, giving you an impressive ROI above 95% when you choose to sell. Minor kitchen renovations should cost around $28,000 to reface a 30-foot square space, giving you a $26,600 return value.
If you’re working on a strict budget, you need the right team to help you leverage the available resources for a perfect outcome. For instance, an experienced renovation company can focus on multiple kitchen touch-ups, such as installing a new energy-efficient cooktop and refrigerator and getting a new sink and fixtures, kitchen countertops, and flooring. The more experienced a team is, the more touch-ups they can complete perfectly within the budget you’re working with.
Bathroom Renovations
As the other important room buyers consider when buying a home, your bathroom is a top candidate for renovation, especially when working with a strict budget. Slight bathroom renovations can significantly improve your home’s interior aesthetics and boost its value during a resale. To get the most from your bathroom renovation, focus on strategic features like the tub, toilet, floor, sink, and vanity.
Replace outdated shower doors or remove them altogether to create more space. To give your bathroom a new look, replace old wall coverings with a fresh coat of paint. A slight improvement on each feature can turn your bathroom into an oasis of relaxation and peace, capturing a buyer’s attention when it’s time to sell.
Garage Door Replacement
While it might not be the fanciest or most exciting home renovation project, replacing a garage door can yield some of the highest returns when reselling your home. Garage doors are among the most prominent parts of your home and stand out as a significant consideration for buyers looking for exterior aesthetic appeal and improved security. Depending on its features and functionalities, a well-maintained garage door’s resale value can earn almost double when selling your home.
The resale value can vary depending on the cost of installing a replacement door. If a conventional garage door is replaced with a modern, smart door, the resale value can be much higher than when simply replacing old parts. A perfectly executed garage door upgrade is one of the few home remodeling projects that gives you back more than you spent on it when you sell your home.
Entry Door Upgrade
Just like the garage door, the entry door is one of the first features potential buyers see when entering your home. To make the most of it during a sale, you must ensure it’s in perfect shape, whether by painting it, adding features, or replacing it entirely. The cost of replacing a front door may vary depending on the door material and additional features you want to include. However, the returns from a door upgrade can be as high as double the upgrade cost.
Since an entry door promises high returns, it’s best to give your best shot at your design preferences. Don’t shy away from personalizing the upgrade, but remember not to go too bold, as this can alienate some potential buyers. Go with color and feature upgrades that cohesively align with the rest of your home’s exterior to leverage the returns on your investment.
Siding Upgrade
Your house’s siding isn’t just one of the largest exterior features of your home; it’s also one of the most noticed. While upgrading your home’s siding may not attract double values at resales like entry and garage doors, it still attracts significant ROI.
Fiber cement gives the highest returns on investment, fetching almost 90% of the investment cost. This is because, while fiber cement is costlier, it lasts longer and offers a high value for money. If fiber cement is too costly for your budget, you might consider vinyl, a more budget-friendly option with a return value of about 80%.
Since renovations are additional costs after the initial building costs, it’s important to be strategic with every renovation project you undertake. The important renovation projects to consider first when preparing your home for sale are the ones with the highest ROI, such as the five listed above. Once you’ve attended to these, you can then think of additional touchups to put your home in its best shape during listing.
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