Home Improvements that will increase your home value
Whether you are considering selling your house or just want to keep the curb appeal fresh, it’s always a smart idea to keep your home up to date and maintained, which will save you money in the long run. Below are home improvements tips for both inside and outside of your home that have been proven to see the highest rate of return on the investment.
Exterior Home Improvement
- Replacing your Front Door
Replacing your front door can make a big impact on the sale value of your home and it will also improve the cub appeal. Buyer’s first impression when entering your home is vital and creates a sense that the home is well maintained. Steele doors have the highest return on investment. The percent of value recovered from the project is 75%.
- New Garage Door
The surfaces and finishes and mechanical components on the garage door often get worn-out over time. Replacing the garage door will not only boost your curb appeal but also improve functionality. The percent of value recovered from the project is 87%.
- New Vinyl Siding
Old, worn siding not only gives your home truly sad curb appeal, but it can also contribute to a loss of up to 10% of your home’s value. Replacing the vinyl siding will improve the energy efficiency not to mention the durability, low maintenance and low cost. The percent of value recovered from the project is 83%, while fiber-Cement siding has a 79% recovery of value from the project.
- New Roof
Replacing the roof is probably the most cost effective improvement when compared to other home improvements. It has several benefits, including energy efficiency, lower insurance premiums, durable and long-lasting results and improved materials. Replacing the roof will also boost the chances of selling your home faster. It also shows that the basic systems of house is well maintained. The percent of value recovered from the project is 105%.
- New vinyl Windows
Replacing windows is another great home improvement that gives your home a fresh look and is often neglected when it comes to maintenance of your house. The top reason for replacing windows, is to improve energy efficiency, better functionality, improved finishes and materials and livability. Vinyl windows have the highest percent of value recovered from the project, at 80% while wood windows have a 58% recovery of value from the project.
- HVAC Replacement
Replacing the HVAC has many benefits, including energy efficiency, functionality and is another feature that will boost your chances of selling your house faster. The percent of value recovered from the project is 71%.
Interior Home Improvements
- Kitchen Upgrade
The top reason for doing a kitchen upgrade, is to replace worn-out surfaces, finishes, and materials and to give it a modernized look. A minor kitchen remodel can include new flooring, countertops and moderately priced appliances without going over budget. The percent of value recovered from the project is 67%.
- Complete Kitchen Renovation
Doing a complete kitchen renovation is obviously a major project but there are several benefits including, modernizing, functionality, livability, and increase sense of enjoyment when home. The percent of value recovered from the project is identical to the kitchen upgrade, at 67%.
- Bathroom Renovation
The top reason for doing a bathroom renovation, is to replace worn-out surfaces, finishes, and materials and to give it an updated look. Bathroom renovation and Kitchen upgrade are the most popular home improvements and gives an increased sense of enjoyment when home. The percent of value recovered from the project is 58%.
- Add New Bathroom
Adding a new bathroom can be very costly and it should be examined as to whether the improvement will add value to the home. In some instances, adding an additional bathroom may not makes sense if your house is the only house in the neighborhood with the extra bathroom. It’s always prudent to consult with a Realtor prior to any major home improvement, to evaluate the current market conditions and resale ability. The percent of value recovered from the project is 52%.
- Basement Conversion to Living Area
Basement conversion to living area is another major home improvement that should be examined as to whether the improvement will add value to the home. The main reason for doing a basement conversion, is to increase living area, improved functionality and livability. The percent of value recovered from the project is 69%.
- Attic Conversion to Living Area
Attic conversion to living area can potentially increase your home’s value on average of $39,908 and its one of the few home improvements that can be cost effective. Mainly because the floors, walls and ceilings already exist, therefore you will gain living space without having to add on to your home. The percent of value recovered from the project is 61%.
- Insulation Upgrade
Another great home improvement which improves energy efficiency at a relative low cost not to mention high return on investment. This is often overlooked by homeowners and frequently an inspection repair item that is requested by buyer to be remedied. The percent of value recovered from the project is 95%.
- Closet Renovation
Top reason for doing closet renovation is to improve organization, storage and functionality. The percent of value recovered from the project is 57%.
- New Wood Flooring
Installing new hardwood flooring is a terrific way to update your home and improve functionality and livability. It’s also another great home improvement that has a great return on investment. The percent of value recovered from the project is 91%.
- Hardwood Flooring Refinish
Refinishing hardwood floors has several benefits just like paint, it gives your home a fresh look and also one of the home improvements with highest rate of return on the investment. The percent of value recovered from project is 100%.
Generally, “Buyers want to take the basic systems for granted”, “They assume the roof doesn’t leak and the air conditioning and plumbing work. Maintenance can chew up a lot of cash quickly, and people are afraid of that.”
That’s not to say that granite counters and steam showers don’t pay off; kitchen and bathroom remodels continue to be two of the best investments you can make in your house. “They’re always right up there at the top of the list”. “They’re the big, sexy rooms that new home builders splurge on, so when buyers are shopping around that’s what they want in an existing home, too.”
If you’re thinking about sinking some money into home improvement projects this year, keep a few things in mind. What you’ll get back on your investment depends on the value of your house, the value of houses in your immediate neighborhood, the housing market where you live, how soon you sell after making improvements, and the quality of the project itself. Installing a $10,000 stove in a $200,000 house, for example, “just doesn’t compute,” says Ron Phipps. Nor does it make sense to update your kitchen if your house is the only house in the neighborhood with just one bathroom. Here, the scoop on home improvements that will give you the biggest bang for your buck:
Most buyers have a limit on what they can spend for a house. If they know they don’t have to spend money on the upkeep of basic systems, then they’re more likely to buy the house and consider upgrading the kitchen or baths themselves. More than 70 percent of buyers who purchased existing homes knew what they were going to remodel before they even closed on the deal, according to HanleyWood’s Housing Continuum Study, conducted in 2002 in conjunction with Harvard’s Joint Center for Housing Studies. The same study showed that 30 to 40 percent of buyers of existing homes made home improvements within six months after purchase.