4 Home Improvements With the Biggest ROI (And 3 You Can Skip)
We all have things on our home improvement wishlists. Whether it’s an ugly carpet that came with the house or a kitchen pantry that’s just too small, there’s always something we’d like to change. And when it comes to living well, it’s all about wish fulfillment.
But if you’re looking for resale value, then that’s a different ballgame. The ROI on any home project will largely depend on the exact expense and your particular market. But here are four home projects that generally have a positive return on investment if you’re looking to sell. And three projects that might not be with it.
Minor Remodels for Major Rooms
Some of the most important rooms in the house can provide a big benefit for modest improvements. If you can avoid high-cost custom projects some upgrades can return more than 100% on your investment.
For example, the kitchen is a big selling point for a lot of buyers, but the new owners may not want to pay extra for things they didn’t choose. So rather than spending 25% of your budget on brand new cabinets, a new finish is a much more cost-effective way to change the look. It’s also a good idea to replace older appliances with newer, more modern models that are more energy-efficient.
The bathroom is another place where a few changes can go a long way. You might not need a brand new tub, tile, and vanity. Instead, you can re-create the space with a reglaze, a new shower head, some paint, and a few new fixtures that cost a lot less.
Curb Appeal Enhancements
While not all outdoor improvements are worthwhile (we’ll get into that later) the ones that significantly improve your curb appeal can pay off with some improvements averaging a 90%-100% ROI.
When it comes to landscaping, looks matter, but so does practicality. Simple lean lines that don’t appear high maintenance are probably your best bet. Add in a few pops of color and a focal point like a flowering bush or fountain and you’re on your way, plus your local garden center may even offer free design services.
On the more functional end of outdoor improvements, it’s hard to beat a new deck or patio, new siding, or a new entryway for looks and practicality. A front porch makes a home more welcoming, while a back deck creates a relaxing outdoor living space. A new front door is a visually high-impact update that can also improve security. Replacement siding, particularly vinyl, is attractive, low-maintenance, and can improve your home’s energy efficiency.
Do More With What You Have
There’s some benefit to expanding a house or adding new rooms. But It may be more cost-effective to re-work the spaces you already have.
Finishing attics and basements to turn them into new bedrooms, home offices or family rooms can yield a 50%-75% ROI. By increasing the heated, usable living space of a home you may be able to set a higher asking price.
Another option is to remove a wall or two to create an open floor plan. Connecting rooms like a kitchen and dining room or living area creates more space, increases natural light and capitalizes on a growing demand among buyers. But it’s still important to have definition between rooms and to make sure you can remove the wall you want without damaging the structural integrity of your home.
Home Maintenance
The projects that aren’t pretty or luxurious can often be the most important. While it’s nice to have a fresh new kitchen or updated bathroom, those features become less appealing to buyers if the home has more pressing needs.
A roof replacement is far from glamorous but it can come with an ROI of 100% or more. Similarly some HVAC improvements can also add value to a home for new buyers and improve your quality of life while you still live there. An HVAC remodel can ultimately provide an ROI of up to 70%. Other repair and upgrade projects like window replacements, insulation, programmable thermostats, garage door replacements and gutter protection can also add value to your home for a sale and help you save money on utility bills.
Home Improvements That Don’t Pay Off
Major DIY Projects
There’s a big difference between replacing a shower head or drawer handles on your own vs trying to DIY a new floor or bathroom. When it comes to improvements, craftsmanship matters so if you’re not an expert leave the big projects to the pros to make sure you get the full value of the improvements.
A Swimming Pool
Some people see the addition of a pool as an optimal summer spot. But prospective buyers may look at a pool and see it only as an extra expense and a labor burden they don’t really want.
Excessive Landscaping
When it comes to landscaping a little can go a long way, and a lot can become a turn off. Extravagant landscaping may appeal to a few but many buyers may view it as an extra workload and cost they’d rather not maintain.
No matter what home project you’re looking to do you’ll need reliable pros to help. Make sure you look for local specialists, read plenty of reviews and get multiple quotes before starting any project.