Many homeowners enjoy improving their property over time. These subtle changes, upgrades and renovations can provide greater style, comfort and resale value. But they can also hurt your bottom line by adding features or attributes buyers do not like. This is why it is so important to consider home renovations carefully before they begin to ensure they increase your property value. Below are some of the best improvements that provide a real return on your investment.
Note: Project costs as well as return on investment will vary depending on where your home is located.
Manufactured Stone Veneer
Curb appeal is critical for selling your home. An excellent way to enhance your property’s appeal and draw buyers in is to improve its exterior condition. This can prove costly unless you are smart in your choice of finish. Manufactured stone veneer typically costs about $9,357 to install but provides a 95.6 percent return on investment (ROI). When you recoup $8,943 of your renovation costs, you will not regret the work. Before selling, you also get to enjoy pulling into your driveway, like your home is brand new.
Garage Door Replacement
A simple garage door replacement can really improve curb appeal, too. A quality garage door attracts buyers and takes years off of your home’s facade. When you make the switch, ensure you choose one with heavy-duty galvanized steel tracks with a motorized opener. By doing so, you can expect to pay $3,695, but recover 94.5 percent of that value upon sale, at $3,491. That is an excellent ROI.
Minor Kitchen Upgrades
A major kitchen renovation feels like a nightmare to most people. It can cost a fortune, too. But some minor upgrades in this critical living space really enhances your home’s interior and provides excellent return upon resale.
Choose design options that modernize and add functionality for the best results. Focus on replacing older appliances with energy-efficient and WiFi-connected ones. Also consider refacing cabinets, installing new counter surfaces, replacing hardware, changing faucets, upgrading your flooring and painting walls. Those changes will cost around $23,452. But you will recover 77.6 percent of that amount, at $18,206 on resale. Meanwhile, you really upgrade your enjoyment of everyday life, cooking and dining in your beautiful kitchen.
If a manufactured stone veneer is not your preferred choice for exterior improvement, consider siding replacement using fibre-cement siding. This change for the average home costs about $17,008 and returns around $13,195, for a 77.6 percent ROI. If you prefer vinyl siding, this replacement will cost you around $14,359 and yields a 74.7 ROI for $10,731 in value at resale.
Windows are the eyes of your home, inviting guests in and bringing the outdoors inside. If you replace your existing ones with energy-saving low-E vinyl windows, you can expect to spend about $17,000. But the replacement costs and energy savings on your utility bills prove worthwhile when you recoup 72.3 percent from a buyer who pays the value of $12,761.
The Overall Value of Home Remodeling
Home renovations provide great value in terms of your enjoyment of your living space and the return you receive through resale value. When a property appraiser assesses your home, they take improvements into account. This raises the current market value and equity in your home. At the same time, it lowers your loan-to-value ratio. Sometimes such upgrades enable earlier cancellation of private mortgage insurance payments.
Buyers are on the lookout for well-kept, clean and modern homes that appear ready for move-in. In markets where home sale competition is tough, having recent remodelling completed gives you a leg up against other properties. Whichever renovations you choose, just ensure they add to your home’s quality, energy efficiency and visual appeal. Consult with designers and construction professionals as needed before making upgrade decisions. Also, choose to have experts complete the work for you, whenever possible. DIY projects often have the opposite of the desired effect, downgrading home value and appeal.