10 Best ROI Home Improvements
Do you wonder what the best 10 ROI home improvements are? Will the home improvement projects add value to your home?
It doesn’t matter if you flip and sell houses, plan to sell your property soon or if you want to enjoy some upgrades. These are some questions every home seller will ask themselves before embarking on any home improvement projects.
There’s no doubt that are several ways to boost your home improvements ROI. However, it’s only with the right home upgrades because not all home improvements are created equal. For example, a dream of a spa and swimming pools won’t always pay for itself. However, other jobs like fixing leaky roofs and gutter replacement may not sound luxurious but will increase your home value.
To make it pocket-friendly you must focus on projects that deliver the highest return on investment. So to give you an idea of where your renovation money should go, here are ten home remodeling projects real estate agents recommend with the highest return on investment.
1. Major or minor kitchen remodel
A kitchen remodel comes with the highest return on investment. Though expensive, you get back anywhere between 50-75% of the expenses. Even if you don’t want or can’t afford a complete kitchen remodel now, there are other ways to get your ROI while selling.
For example, you can consider minor kitchen upgrades like:
- Refacing old cabinetry
- Replacing old kitchen countertops with new granite or quartz ones
- Adding a fresh coat of paint
- Changing the hardware, plumbing, and electrical fixtures
- Buying new stainless steel appliances.
2. Bathroom remodel
You have the option of a minor or major bathroom remodel. A minor bathroom remodel involves minor changes which give your bathroom an updated look. It includes projects like replacing the showerhead or vanity and updating lighting that makes things brighter.
A major bathroom remodel involves a complete overhaul and not just replacing amenities.
It means you upgrade everything from the flooring to plumbing to lighting. Upgrading the bathroom completely, especially the master bathroom, can convince most potential buyers that they are making a good investment.
3. Enhanced outdoor living spaces
The pandemic, and the need for fresh air, have increased the need and demand for outdoor space. So it’s not surprising that outdoor living areas are pretty prominent in many buyers’ wish lists today.
If you have the space and are looking for home improvement projects with ROI, consider adding some outdoor areas and increasing your yard’s usable living space. While selecting the deck materials, remember that potential buyers prefer composite decking to wood as it requires ongoing maintenance.
4. Garden landscaping
Modest backyard landscaping ideas, also offer an average ROI of 100%. When you speak of modest projects, it includes upgrades that are easily maintained where your buyer needn’t do much gardening.
It includes a general tidy-up, adding a few low-maintenance plants, and perhaps having a neat driveway. Remember, new landscaping could be just what you want to make your home fresh and appealing. Besides, aesthetic curb appeal goes a long way at selling houses because it creates the right first impression for buyers who see your home for the first time.
5. Upgrades that make the home feel spacious
A home buyer will always look for more value for their money. So an upgrade that makes your existing space look and feels spacious will indeed add value for them. There are multiple ways to increase your home’s median square feet.
You could, for example, add a bedroom, a family room, bathroom, or even have a two-parking lot garage. With most households having two cars, this will be a value-added resource for your home.
6. Attic bedroom conversion
As mentioned above, increasing your available space is one of the best ways to improve your house value. As increasing the number of available rooms helps, it’s worth converting your attic into an extra room if you have a convertible attic.
7. Fresh coat of paint
Giving your walls a fresh coat of paint is one of the most impactful ways to improve the looks of your home. With the right colors, just repainting your home interiors gives you a 107% ROI. A fresh coat of light colors like light grays, creams, or whites to any room creates a feeling of a larger and warmer space.
8. Small details
Don’t worry if you aren’t up to a massive DIY project. You can make a minor remodel of average costs that give you a good return on investment while selling. The trick lies in going through your home to identify the strategic and other improvements you need to make.
For example, you could consider:
a. Exterior vinyl siding replacement
As your home’s exterior creates the buyer’s first impression., replacing your home’s siding with something durable will increase your curb appeal and give you a higher ROI. As vinyl is durable and easy to maintain, it’s the perfect choice for homes with extreme temperatures.
In addition to exterior siding replacement, your choice of manufactured stone veneer will also help increase your curb appeal.
b. Fiber cement siding replacement
Fiber cement is a popular choice for most homeowners, thanks to its features. It looks so much like wood but doesn’t require extensive maintenance. Besides, as it’s not actual wood, there’s no worry about it rotting or warping with time.
c. Vinyl window replacement
Upgrading windows not only provide an aesthetic appeal but also helps improve insulation. Vinyl is no doubt a popular choice because of its looks and durability. However, according to Remodeling magazine, wood window replacement also enhances homes’ attractive looks. The ROI of new windows is so good it can help recover 63% of your expenses.
d. Front door and garage door replacement
Though a simple project, front door replacement is very impactful as it’s one of the first things buyers see. Homeowners will thus strive to put their best foot forward and increase curb appeal by replacing their entry doors. Steel doors are a good choice as they offer a more secure mechanism, with excellent thermal insulation for homes exposed to high temperatures.
You can similarly also opt for a garage door replacement to improve the appearance and function of your home. New garage doors can provide an overall ROI of 94%.
9. Refinished hardwood floors
With most buyers preferring homes with hardwood floors to carpets, installing new hardwood will give you optimal returns on investment. Of course, you can skip this project if your carpet is in good condition.
If not, or if you have pets, then it’s worth installing new hardwood. Paint and refinishing hardwood floors go a long way in making your home feel and look new again.
10. Basement remodel
Not all homes have the luxury of the basement, but you should consider remodeling it if you do have one. There are so many things you can redo the basement into, like an extra bedroom, guest room, man cave, games room, or any usable living space for you and your family.
In short, the USP lies in converting your dark and dingy basement into a room that turns into your home’s selling point.
Consider Your Area’s Trends
If you ask your real estate agent, they will recommend considering your area’s trends while figuring out your home improvement best ROI. It doesn’t have to be home design trends but includes factors that make a big difference to your area’s real estate market.
For example, as people are more environmentally conscious these days, it’s worth investing in energy-efficient appliances and innovative home features. They save on utility costs, come with increased features, and have a high ROI.
Besides, there’s no point spending as much, or nearly as much as your home is worth, on your remodeling project to increase your resale value.
The general rule of thumb to follow is to spend only about 10% of your home’s value to remodel your kitchen. And if you want to remodel your master bedroom, spend only 5% of your home’s value on it.
In short, if you are looking for optimal ROI, there’s no fixed rule to determine the best remodeling projects for your home. While the ten suggestions made here offer maximum ROI, the final decision depends on your area and neighborhood expectations.
For example, you will only lose money if you add luxury updates to your home if it’s not in a luxurious area. The best way to find out what finishes sell in your neighborhood is by monitoring recent sales in your neighborhood and the real estate market. It’s also always better to consult with a local realtor before starting your project.
Which home improvements add the most value?
If you ask any real estate agent, the home improvements that add the most value to your home improve your home aesthetics and add functional space and square footage to your home. They include:
- Garage door, window, or siding replacement
- Fabricated stone veneer exteriors
- Wood deck addition
- Kitchen renovation
- Bathroom remodeling
- Converting the attic or basement into a room
What is a good ROI on home improvements?
Suitable home renovation projects can deliver as much as 70% ROI per year. It’s no wonder home renovations are considered in real estate markets to be a good investment that can improve the quality of your living space while increasing your home value.
Contact Ed Cook today for all your real estate needs in South Florida.