By Maria HinermanOct 15, 2014
Everyone that watches home improvement shows, such as “Flip this House”, “Property Brothers”, or “This Old House”, knows that home improvements can help add value to a home. You see examples where the investor/flipper buys a home for an incredibly low price (because the structure is falling apart, or it needs serious maintenance work, or the house is over 100 years old and everything needs to be updated), they do a 20 minute montage showing the remodels, and suddenly, the house is worth double or triple the price! Sounds amazing, right?
The problem with these shows is that they make viewers think that home improvements will substantially add value to a home, and this is not always the case. Some home improvements may add living space or a special touch, but they may not be budget friendly or increase the value of a home. This is because these improvements often end up costing way more than what the return on investment ends up being (here is a great example by Houselogic).
So which home improvements actually do give you “more bang for your buck”? Here are 6 home improvements that have the highest return of investment.
Replacing Your Front Door
According to Remodel magazine’s 2014 Cost vs. Value Report, a steel entry door replacement has a 96.6% return on investment (based on national averages). This means that this low-cost project not only can help you increase the value of your home, it can also increase dramatically your home’s curve appeal. Check out the designs of these front doors for ideas and inspiration.
With home owners’ ever-increasing love of outdoor living, wood deck additions have and will continue to be a great investment for a home. Having a deck built creates living area in your back yard, and it also helps increase your home’s value with an 87.4% average return on investment. Here are some before and after deck makeovers to get you inspired.
Attic Bedroom Remodel
Remodeling an attic to turn it into a bedroom is a cost-effective way to add livable square footage and another bedroom to a home. This way you can maximize your home’s living space, and feel great since the average return on investment on these remodels are 84.3%. Get some inspirations with these 16 amazing attic remodels.
Minor Kitchen Remodel
The kitchen is one of the most used places in a home, and no one wants to hang out in a cramped or outdated kitchen. A minor kitchen remodel will create a beautiful and custom space, as well as a return on investment on average of 82.7%. Check out this great kitchen remodeling guide for tips and advice.
Replacing old windows can help improve the look and feel of a home, as well as save on heating and cooling costs. Window replacements have a high return on investment of 79.3% for wood windows, and 78.7% for vinyl windows. Here is an article on how to choose the right windows for your home.
Vinyl Siding Replacement
Vinyl siding is the face of your home, and it has a huge impact on your home’s curve appeal and the overall value of a home. Clean and well cared for siding shows that the home is well taken care of and in good shape. And replacing old siding can return 78.2% on the initial investment. Here is a great guide on how to choose siding for your home.
Home improvements are a great way to maintain a home and add your personal touch. But remember, just because the changes you’ve always wanted don’t have a high return on investment, it doesn’t mean that you shouldn’t do the project. If you are looking to stay in your home for several years, home improvements should be made for your own benefit. But if you are looking to sell your home soon and/or for ways to add value to your home, then thinking about what home improvements that have the best return on investment might be beneficial.
If you are looking to sell your home soon, click here to contact one of our Licensed Mortgage Loan Originators today to learn about what mortgage loan is right for you.
These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact us.