Whether you plan to sell your home this year or a decade from now, remodeling projects can improve both the resale value and the appearance of your home. But it’s challenging to know which upgrades are worth the investment and which are a waste of time and money.
Here are some home improvement projects to consider that are almost certain to improve your resale value and the look of your home.
1. Minor Kitchen Remodel
Kitchens in older homes were not designed to be as functional as they are today. If you’re still cooking in a kitchen that dates back to before you were born, a minor kitchen remodel may be just the thing to love the culinary arts again, while increasing your home’s value.
Upgrade your appliances with energy-efficient models, replace old cabinetry with newer options, and redo your counters. The average return on investment for a minor kitchen remodel is 81 percent, with an average project cost of about $21,000.
Always over-budget for your project. It doesn’t matter what you decide to replace or upgrade – remodeling projects will cost a lot less than you anticipate. You can choose to save money, but in the end, you will almost always end up spending as much or more than you expected.
2. Installation of a wooden deck
Adding a deck to the back of your home gives you a great place to throw a barbecue, host an outdoor dinner, or even set up a hot tub so you can enjoy the outdoors without getting a mess on your feet. It’s also a great way to add value to your home, as long as you choose a design made of wood rather than one made of plastic or composite. It will cost you an average of $10,500 to build a wood deck, but most homeowners recoup 85.4 percent of that cost – the biggest return on investment you’ll find on this list.
If you choose wood, be sure you’re prepared to sand and refinish it periodically so you can enjoy your deck without worrying about splatters on you or your guests.
Connected: Home Upgrades That Are Seriously Worth Making (Think: ROI!)
3. Garage Door Replacement
When was the last time you replaced your garage door? An old or outdated garage door not only hurts your home’s value—it can be downright dangerous. While they were made safer in 1993 when a law was passed mandating that all garage doors be equipped with an auto-reversing feature, they are still the largest and heaviest moving item in your home.
On average, you’ll spend about $3,600 to replace your garage door and all associated equipment, but you’ll regain almost all of it in your property’s value. In addition to making your home safer and adding curb appeal while improving property value, the ROI for a garage door replacement is an astonishing 97.5 percent—all in one neat package.
4. Update or Add a Bathroom
Older homes may be designed with only a single bathroom, but if you have more than two bedrooms, you’ll be hard-pressed to sell a home that only has one bathroom. Depending on where you live, adding a new bathroom to your home can give you anywhere from a 50 to 70 percent return on investment. It may not sound like much, but for someone who is shopping for a new home, that extra bathroom could mean the difference between choosing your property or passing it on for another option.
You don’t even need to have a full bath—that includes a bathtub, shower, toilet, and sink. A three-quarter bath that includes a shower but not a bathtub can save money while providing the kind of return on investment you’re looking for. As long as you have at least one bathtub in your home, you’re good to go.
Connected: 7 Ways to Spend a $5,000 Renovation Budget for Max ROI
5. Siding Replacement
The exterior of your home has a lot to do with the value of your property. They say you don’t get a second chance at the first impression. And for a potential buyer, the exterior is that first impression. Upgrading or replacing your siding is like giving your home a facelift. Replacing the siding on the entire exterior of your home will typically cost about $14,000, but you’ll typically recover between 77 and 80 percent of that cost in terms of increased property value.
Don’t choose crazy colors or things that will make your house stand out from all the other houses on your block. Part of curb appeal is making sure your home looks like everyone else’s. You can certainly make it stand out in other ways, but don’t choose options that are too bold (like neon green siding). Which will cost you money.
all around win
It doesn’t matter if you plan to sell your home next week, next year, or next decade—or if you’re not planning to sell it at all and are just looking to improve the value of your property. Because you’re going to refinance – these projects can increase the value of your home while making it more comfortable for you in the long run. Enjoy your new upgrade.
What projects are you considering for your personal residence? For your investment properties? Why?
Let’s chat in the comments section below.
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
