Choosing to make improvements to your house ranks up there with your other brilliant ideas. Home improvements add value to your property while also increasing the function and efficiency of daily operations. Whether or not you have plans to put your home on the market any time soon, investing wisely in your home serves you in a multitude of ways and can garner some pretty impressive returns. While certain upgrades – like cosmetics – might be pushed to the back burner in favor of other, more necessary repairs (plumbing, electrics, gas, and structure/foundation) there’s still lots to consider when choosing which project to tackle first, or at all given your budget. One major factor homeowners consider: return rates. Here’s our list of home improvement projects with the best returns.
First Thing’s First
Let’s just get this out of the way. If there’s something fundamental in your home that needs repair (your roof is old/leaking, the plumbing is backed up, or your HVAC system is working overtime and barely producing the bare minimum) you’re best handling these repairs as soon as you can. Waiting to fix these types of issues usually leads to a higher repair cost the longer you put it off. Just like with your car, if your oil needs to be changed and you just keep driving, the engine will soon be affected and your costs will skyrocket. That being said, onward!
Minor Remodels
If you are in the market for putting your house on the market, you can instantly increase the value and expect a full return on minor kitchen and bathroom remodels. Mostly cosmetics, this type of remodeling project can include new counters and floors or refacing your cabinets, and new fixtures, color palette, and decor. You’re not moving anything around or changing the layout – remember, we’re talking minor upgrades – but you can create a space that is like new for the new homeowner. When picking materials the trick is to choose good quality that doesn’t launch your prices out into the stratosphere, but that are also durable and attractive. For your efforts you’ll land in the 95% to 100% range of return.
Major Renovations
While it’s possible to spend as much on a minor remodel as it is a small scale renovation, you’ll be lighting money on fire with a major renovation. However, if there’s just something off about your kitchen or bathroom that’s always left you wondering ‘Why?’ – for example, the light switched are behind the door – then a good old-fashioned renovation can work all the magic your home needs. Again, the best places to focus this major effort are the bathroom and kitchens. They get the most use and are usually top determining factors for potential buyers. Things to consider when remodeling are plenty of storage space (hidden storage is very appealing because it doesn’t take away from the design appeal) and peak efficiency. You’re likely to gain back 85%-88% of your investment when renovating these two rooms.
New Roof
A good solid roof works in two ways; it shields your house from the elements, and it amps up the curb appeal of your home. There’s a variety of roof choices; you’ll want to pick materials that compliment the outside of your home. High quality roofs will last decades. So even if you plan to stay in your house for a long time, replacing the roof if it’s time is a sound investment. You can even take this opportunity to convert your roof to a green energy source with solar panels or a living roof complete with plants that bring beauty and energy efficiency. With a new roof you can look forward to a recovery of up to 80%.
Outdoor Fixes
This is a very broad topic, but especially if you’re actively trying to sell your house, improvements to your exterior definitely pay off. Think about it this way; the first thing a potential buyer sees is the front yard/exterior of your house. Landscaping fixes, window treatments like awnings or shutters, a new patio/porch, front door, or even garage doors all bring 80% – 100% back of what you initially put down. Never underestimate the power of a good first impression.
What’s Not Worth It?
Brass tax, making fixes to your living and bedrooms are the absolute last thing you should consider. Converting a garage, attic, or basement all bring back a fair sum (average 60% – 75%) but those are renovation projects better left for your forever home where you have specific plans for these rooms. You don’t want to install a home theatre system in your basement for the next person to enjoy before you ever get a chance to. The other down-side to these renovations (for the purpose of increasing value for market competitiveness) is that they’re often times highly personal and unique to you, which could make them harder to sell.
But going back to the living and bedroom options, it’s nice if you can fix it up to have more space, more storage, maybe some cool features. But for the most part, those rooms are large and empty squares and better left to the imagination of the new owner. Focusing your efforts on things that can’t be moved (kitchen and bathroom) is the better move if you’re looking to sell and get a return for your efforts.
