Renovating your home is a serious investment, but smart home improvements add tremendous value to your home and convenience to your life. To ensure a high ROI, avoid unnecessary projects and focus on updates that will allow you to recoup the most money.
Financing Home Improvements
While minor improvements typically won’t break the bank, the cost of a home remodel can become extremely pricey if you don’t go in with a budget. Consider how much you are willing and able to spend ahead of time to ensure you don’t spend beyond your means.
Some people use home equity loans or cash-out refinancing to cover construction costs. Both options allow you to convert your existing home equity into funds that you can use to finance your improvement project. Financing with your equity allows you to avoid high upfront costs and boost initial ROI.
Choosing Home Improvements with High ROI
In addition to financial considerations, consider which projects will add the most value to your home. This includes being deliberate when choosing building materials and contractors to keep within budget.
Whether you want to sell your home soon or simply update your property, these home improvement projects are likely to pay off.
Approximately 80 percent of homebuyers place the kitchen on their list of the top-three most important spaces. You can expect to recoup as much as 77% of your investment on a kitchen remodel.
Kitchen updates may be as simple as repainting cabinets and installing a new backsplash or purchasing new appliances.
Bathrooms have a higher-than-average ROI. If you choose to remodel your bathroom, you may return between 60% and 70% of your initial investment. As with other remodeling projects, avoid overspending. Prioritize functionality and make sure to tend to any plumbing or electrical issues first.
For a greater ROI, consider high-value bathroom upgrades, such as replacing plumbing fixtures, updating your vanity, repainting walls or replacing the flooring.
Laundry Room Renovation
Homeowners are on the lookout for a dedicated, functional area to wash clothing. That said, it’s no surprise that you should expect to recoup up to 91% of your initial investment by improving this space.
There are more than just financial benefits to renovating your laundry room. For instance, proper machine placement and installation by professionals can reduce the likelihood of flooding and electrical issues. You may find it more convenient to build a laundry room on the main floor rather than in the basement since you won’t have to lug baskets up and down stairs.
Garage Door Replacement
Looking for more bang for your buck? Homeowners who update their garage door can expect to recoup as much as 97.5% of their initial investment. They can also enjoy benefits like enhanced home security and a higher resale value.
To determine whether a garage door replacement is worth the investment, consider your location and the condition of your current door. If you live somewhere windy, you’ll want to choose an insulating door that’s suitable for the climate.
No matter what you choose to renovate, make sure the updates align with the market of homebuyers and their needs. Tending to the current market enables you to sell faster and reap the most profit.