When you’re a homeowner, there’s no shortage of home projects. But how do you know which projects are going to net you the best return on investment? Even if you aren’t thinking of selling for a while, it’s still helpful to know which renovations and projects will help you boost your home’s value.
Here’s a quick overview of which projects will help you make the most of your project spend, and a few that don’t usually see a great return.
Update your home’s siding
While it’s not the most exciting project, you could recoup 92.8% of the cost of replacing or updating your siding. Buyers want to know that the home’s basic functions are in great working order, so putting some money into siding could increase your value and help you earn more on a sale. Although it’s not a fun project, it will appeal to buyers since it’s one less thing they need to update on the house!
Minor kitchen upgrades
Investing in your kitchen is a smart decision, but minor remodels actually recoup more of their cost than major remodels. HGTV defines a minor remodel as a project with a cost of around $15,000. Many major kitchen updates include custom features that might not appeal to all buyers, so giving your kitchen a minor refresh might actually earn you more money back. You can start small by replacing cabinet hardware or the faucet, then move on to bigger items like painting or refacing the cabinets.
Give the bathrooms a boost
Homebuyers are typically most focused on the kitchens and bathrooms in a potential home, so identify improvement opportunities in your bathrooms. You can usually expect to recoup between 87% and 93.5% of your investment with a bathroom remodel. But remember - start small! You don’t have to gut the whole bathroom. Consider updating the grout, switching out light fixtures, or replacing the mirror.
Enhance your home’s energy efficiency
Many buyers today are looking for eco-friendly features and fixtures. One of the best ways to improve energy efficiency is with new windows. This is a big investment, but windows can return around 77% of their original cost. You don’t have to replace every single window in your home to realize this benefit, just start by identifying windows with significant issues and replace those.
Home projects that don’t offer a great ROI
Wondering which home projects might not be worth your time and money? Here's a list of some renovations that don’t typically offer a large return on investment.
Swimming pools
Converting a garage to a living space
Custom luxury upgrades
Wallpaper
Wondering what your home is worth? Reach out to me at 8Z Real Estate and I’d be happy to have a conversation about your house!