What 2018 Home Improvement Projects Provide the Greatest Return on My Investment?
You know the expression, “get your house in order?” Well, as it turns out, ensuring that the foundation of your home is in great working order is one of the best investments you can make when it comes to increasing your home’s value. Sure, you may dream of granite countertops and a luxury jacuzzi tub, and while a prospective buyer isn’t likely to turn their nose up at those features, they’ll be much more concerned about the quality of the roof and plumbing.
That’s not to say that big remodeling projects don’t pay off. Remodeling Magazine’s annual Cost vs. Value report consistently demonstrates an increasing rate of return on investment (ROI) for major remodeling projects in the kitchen (61.9% ROI) and in the bathroom (59.1% ROI). It’s important to keep in mind though that those types of projects are subject to personal taste and what is in style today may feel dated by the time you’re ready to sell your home.
With that in mind, read on to learn about three home improvement projects that can increase your comfort (and your cost-savings) in your home. Each of these projects will also make your home attractive to prospective buyers to ensure you get the best return on your investment when you’re ready to sell.
Start by Increasing Your Curb Appeal
Curb appeal is often taken for granted. You would think that a prospective buyer isn’t going to be turned off by something as minimal as dead grass, some oil stains in the driveway, or a loose gutter, right? Wrong. Nine out of ten (87%) homebuyers, across all generations, use an online resource to search for homes. This makes first-impressions more important than ever. You can’t rely on a realtor to showcase all the truly special interior elements of your home if prospective buyers are just doing quick drive-by’s of your neighborhood or clicking through hundreds of available homes online. Instead, those “small” problems can make your home look like it’s not maintained well, which signals potentially greater maintenance problems.
Fortunately, increasing your curb appeal is one of the most budget-friendly ways to improve your home’s value and desirability. You can spend a few hundred dollars to paint your front door (if you can afford it, replace your front door with a steel alternative for a 91% ROI). For lawn care, mow the grass and add some color with flowering annuals, or make a more significant investment to include a stone walkway, a backyard deck, or a water feature. The Washington Post reports that an investment in curb appeal can yield anywhere from a 100% to a 1,000% return on your investment. And while an exact number is hard to pin down, what is clear is that the investment is definitely worthwhile.
Make Your Home More Energy Efficient
It’s not just Millennials who are interested in eco-friendly housing. Most Americans (85%) want to live in more environmentally sustainable homes and they are willing to pay a premium for it.
For instance, just improving your attic insulation can yield a 107% ROI. Additionally, 94% of homebuyers want Energy Star rated appliances, so why not upgrade now? In addition to attracting prospective homebuyers, you’ll enjoy reduced monthly energy bills while you’re in your home and could potentially earn a tax credit, as well.
Other options to explore include energy efficient windows, solar panels, and water heaters. You may also want to consider making your home more “smart.” A Nest Thermostat may cost you around $250, but it will also allow you to figure out how to make your home increasingly energy efficient. As you make headway and your energy use declines, you’ll be able to use that data to market your home to homebuyers.
Solar panels or energy efficient windows may seem like a huge investment, but advances in technology, as well as increased consumer demand and environmentally-friendly tax incentives, have made these features much more budget-friendly and accessible than they were even five years ago.
Your state, and even your local community may also provide incentives to get you to “go green,” so it’s definitely worth investigating!
Maximize Your Living Space
If you can make renovations within your home to increase your living space—changes that don’t require building an addition or expanding the roof or foundation of your home—you can expect to yield an 84% ROI. Converting your attic to a bedroom or office is a great way to do this as the floor and ceiling already exist and the quirky sloping roof is often seen as a charming addition.
And while adding a bathroom might increase the overall cost of your remodel, it does create a great living space for out-of-town guests, grandparents, or teenagers looking for a little additional privacy. You may even create an additional revenue stream (for you or the future owners of your home) by creating a space that can be rented out on site like Airbnb.
Additionally, if you live in a city where the housing market is especially challenging—like San Francisco, Miami, Washington DC, or Los Angeles—your ROI will only increase as access to square footage is at a premium.
Always Keep the Neighborhood in Mind
Whichever renovations you chose to take on, be careful not to price your home out of the neighborhood. For instance, if you live in a neighborhood where homes are selling for $250,000 it probably won’t matter if have Italian marble for your kitchen counters or solar panels that have helped move your home effectively “off the grid.” Despite those stunning upgrades, you’re still not likely to sell for the $500,000 that you think your home is worth. So unless your remodeling choices are solely motivated by what will make you most comfortable in your home for the long-term, don’t spend more than the going rate in your neighborhood. You can definitely be at the upper end of home values in your neighborhood, but it’s not wise to be leading it.
About the Author:
Danielle Hegedus is an Atlanta based writer. She is a regular contributor to the roof experts at Modernize Roofing Leads, as well as a variety of green lifestyle and home design websites.
If you are thinking about selling your home, now would a great time to start with some of these home improvements that give a good return on your investments, Then call Jerry at 210-789-4216 once you are ready to place your home on the market to sell.