Do Renovations Generate ROI?
Did you know that not all home renovations affect your home’s value? In other words, your ROI could be next to nothing on some renovations. Even if you do see a return on your investment, it’s sometimes less than half of what you paid.
Was it worth it?
Fortunately, many home renovations provide an exceptional return on your investment. Knowing what they are and how much of a return you’ll get can help you decide.
Why Home Renovations Affect your Home Value
Before we get into the list of renovations you should consider, let’s look at why home renovations affect your value.
When you improve your home, you improve its features or its quality, both of which affect the home’s value. Buyers are more likely to pay more for a home that’s recently renovated than one that needs repairs and/or is outdated.
But which home renovations should you do?
The Top Home Renovations to Consider
Focus on the areas of your home that need major improvement, especially if safety or stability is an issue. Other than that, consider these renovations to improve your home’s value.
You may not think of the garage door when renovating your home, but it can provide almost a 95% ROI. With an average expense of $3,500, you can improve your home’s value by almost $3,300 with this change. Think of it as improving your home’s curb appeal.
Minor Kitchen Remodel
The kitchen is the heart of the home. Renovating it doesn’t have to mean tearing down walls and reinventing your kitchen. Painting the cabinets, switching out appliances, and updating the faucets or light fixtures may provide an ROI of 77% or more.
Windows are another great way to improve your home’s curb appeal, but they also affect the home’s energy efficiency. They can be a hefty investment, but you’ll typically recoup almost 75% of your investment. As a bonus, you’ll likely reduce your energy usage in the home which may further increase the return on your investment.
New siding is another exterior project that can increase your home’s value. This is especially true if your siding is damaged or you have vinyl siding and replace it with something more stable.
Most siding investments provide a 75% ROI, plus it increases the curb appeal of your home if you choose a color that’s trending right now.
Before you make any home renovations, talk to a professional (like myself) to see how much of an ROI you’ll receive from the renovations.
Some homeowners renovate their home just to make the home look how they want or to give it features they want. But, you should always have your ROI in mind so you get the most out of your investment. You probably won’t be in your home forever, so why not get the most out of it by improving its value with the renovations you choose?