If your Christmas present to yourself this year is a home renovation of some sort, as your local real estate team, allow us to fill you in on the home renovations that yield the best return on investment, or ROI! Not all home improvement projects are created equal, and some can actually hurt your home value more than help. When you decide to sell your home, you’ll be glad you chose the renovations that help a home value rather than hurt it.
Currently, these are the home renovations that yield the best ROI for homeowners:
Replacing the front door – 101.8% ROI. This is the only home renovation to be proved to return 100 percent of what you put into it, and then some! A steel door has the most ROI, followed by a fiberglass door.
Installing a fireplace – 91% ROI. Buyers rank fireplaces as one of the top three amenities they’d like to have, so it’s smart to add one if you don’t have one, and to make it more energy-efficient by having an insert professionally installed to counteract air gaps.
Remodeling the kitchen – 85% ROI. Houston homebuyers love a remodeled kitchen, as this is typically where the most foot traffic takes place. Kitchen projects budgeted at 6-10 percent of the total home value will see the highest ROI. Spend too much and you most likely won’t see that money again.
Converting attic into bedroom – 83% ROI. It’s a hefty renovation cost, averaging around $5,000, to strengthen the floor, add insulation and complete all the finishes. But creating an attic bedroom could increase your home value by as much as $40,000!
Replacing exterior siding/cladding – 80.7% ROI. The exterior of your home is the first area that potential homebuyers see, so don’t underestimate its value! Options for siding replacement include vinyl, fiber cement, foam-backed vinyl and more.
If you are planning a holiday home renovation, or an improvement project for the New Year, these are some great ideas for you to consider! When you go to sell your home, you’ll be glad you considered the ROI value of your renovation.
When you are ready to sell, there are many inexpensive options for you to consider as well. These include fixing windows or doors that creak or are hard to open, washing and repainting walls in neutral colors, updating lighting fixtures and ditching old carpeting.
For more information on these tips and ideas, check out this RISMedia article. Good luck with your projects, and when you are ready to sell your home, contact us for help! We are your go-to real estate team, here and ready to help you with all of your home-selling and home-buying needs now and in the New Year to come. Don’t hesitate to give us a call!