Home Improvement Projects With High ROI
Do you have a dream remodel idea on your [neverending] home to-do list? Maybe you have a Pinterest board with design ideas for the perfect master bedroom, with an en suite bathroom and walk-in closet. Whatever the case, before you start working on material lists and getting contractor bids, stop and think about the long term: will this remodel add value to my home when I go to sell? If the answer is no, then put your plans on hold and take a look at some home improvement projects that will give you a return on your investment when you sell your home.
Work from the bottom up
If you have an unfinished basement or one that could use a little TLC, start there. In fact, finishing a basement area is one of the best upgrades that increase home value. Not only will you get to enjoy relaxing in the cozy space, but when you go to sell your home, that basement area becomes additional, liveable square footage in prospective buyers’ eyes.Â
On average, basement remodels cost between $6,500 to $18,500 to complete and will add to your home’s value when you put it on the market; in fact, it can potentially bump your home into another price tier. To put it simply, even if you just focus on putting in drywall, ceiling, and flooring or carpeting — without any bells and whistles — you’ll see a high return on your initial investment.Â
Little tweaks here and there
If full kitchen or bathroom remodels are the things your dreams are made of, you’ll be disappointed to hear that they have a poor return on investment. However, if you opt to forego gutting the area and tackle a minor remodel, you should have no problem recouping your investment.Â
Minor remodels don’t change the overall layout of the room, and typically involve changing counter or sink tops, cabinetry, and fixtures. So, don’t worry if you’ve allocated that extra $50,000 somewhere else. If you spend it on your kitchen, you’ll be lucky to recoup half of that when you go to sell. Yep, you heard correctly. Spending $50,000 on a kitchen will not add $30,000 to your home’s value; if you’re lucky, it will add $25-30,000.Â
Update the fixtures
If you’re working on a more modest budget, you’ll be happy to know that changing out cabinet hardware, light fixtures, and faucets can not only give your home an updated look, but you’ll also receive a return on your investment. The best part is that changing out hardware and fixtures can be done without the help of a professional — in most cases — and save you money on labor at the outset.
Give your interior a facelift
If your walls are in all of the colors of the rainbow, it may be time to freshen things up by going neutral. This is especially important for those of you who are thinking of selling soon. Go ahead and give your home a new look with a fresh coat of paint in neutral tones because this is a home improvement that pays off.Â
When you list your home, potential buyers will be better able to envision their furniture in your home with the blank canvas you’ve provided.Â
Home improvement projects to avoid
Now that you have a few ideas of improvements that offer an excellent return, it’s good to know about home projects with poor ROI. As mentioned earlier, stay away from major kitchen and bathroom renovations, as you’ll be lucky to get half of your investment back. If you’re selling your home shortly, bypass installing a new HVAC system, unless it’s entirely shot.Â
If you spend time researching the potential home improvements on your list, you’ll be able to prioritize accordingly (and even remove some off the list).
