With a little bit of planning and some strategic purchases, you can not only get a nice ROI, but add more function and style to your property. Such improvements have the net effect of adding real value to your home, which is great when it comes time to sell in the future. Combine these with the fact your home is a great location, and you’ll be able to fetch a very nice price for it at resale.
According to a joint venture by the National Association of Realtors and Realtor Magazine, which looked at 35 of the most popular home improvement projects across 101 cities in the United States, there are five which have a good return on investment and are the most practical for function and style. These six changes have the specific aim to save more monthly while providing added comfort and functional features.
Why Home Improvement is a Smart Investment
Minor to major home improvements have a big impact on your home’s value, practically no matter the location, and that’s a fact. The reasons are both obvious and subtle. First and foremost, the right home improvements add value to your home which help to increase your home’s equity. These improvements are also particularly attractive to buyers, who more often than not, don’t want to take on projects, they just want a move-in ready place.
“Homeowners should pursue projects that add considerable value, such as converting an attic into a bedroom and minor kitchen remodels. Even if you’re not planning to sell your home anytime soon, it’s an inevitable question when you consider remodeling: How much will this improvement add to the value of my home? Surprisingly, much of the time the answer is not as much value as it costs to actually make the improvement. But some home renovations bring you more bang for your buck than others.” —US News and World Report
The more subtle reasons are health related. A better home is less stressful than one that’s a never ending money pit which constantly demands attention. The more comfort a home provides, the better quality of life it gives its homeowners and is more welcoming to guests, providing key elements for entertainment. What you don’t want is to waste money on bad home improvements.
The 5 Best ROI Home Improvements
When you’re ready, you can opt to do one or more of these five home improvements and enjoy a nice investment return, plus more function and style:
- Front door replacement. It probably would surprise you to learn that a sleek-looking steel entry door is one of the best home improvements you can make. Putting a new entry door on your home, which averages in cost about $1,162, brings a whopping 96.6 percent return on investment! It adds more security, plus help to improve your home’s curb appeal.
- Adding or replacing a deck. Since the year 2007, this has not been at the top of the home improvement list; but now, it’s one of the best for ROI. A typical 16 foot by 20 foot wood deck, costs on average, $9,540 but its return on investment is an astounding 87.4 percent. While you’re at it, make that deck more inviting and functional by installing an outdoor firepit, fireplace, wet bar, or kitchen.
- Garage door replacement. This adds to your curb appeal and to the function of your home and costs on average about $1,530 but it too fetches a nice ROI of 83.7 percent. This is a good choice since three out of four homebuyers choose to purchase homes with a garage.
- Minor kitchen remodel. You know this one had to make the list, and it’s predicted to be the number one home improvement of 2014. Refresh the cabinets and countertops, don’t replace them, and upgrade to energy efficient appliances, brush on a new coat of paint and replace the flooring for an average cost of $18,856. That money will bring back 82.7 percent.
- Window replacement. Pop in some insulated wood windows for $10,900 and get an ROI of 79.3 percent or put in vinyl windows at a cost of $9,980 for an ROI of 78.7 percent.