Dreaming about all the ways you can turn your house into your dream home? Big renovation projects are a lot of work and money, so if you're considering resale value, make sure you choose the projects that give you the most bang for your buck.
When it comes to resale value, renovations such as waterproofing a basement, getting a new furnace and air, or paying for a new roof are typically a better return on investment than updating the aesthetics of a home. Even if a home has a beautiful kitchen layout and new appliances, it’s still not enough to get most buyers interested if there are issues such as a leaky roof or outdated electrical in the house.
While an updated bathroom or kitchen is a plus, what buyers really want is a home with good bones. There are plenty of things to worry about when a buyer is looking at a home, and they don’t want to purchase with an expectation to pay for a new air conditioning unit or fixing leaky pipes.
Once all of your essentials are in good, or at least decent condition, be strategic in considering your home remodel projects. Keep in mind that typically the lower the cost of the remodel, the higher the return on investment.
So, what’s the home renovation that gives you the highest return on investment? Attic insulation. It costs around $1,350 and adds around $1,450. It’s not nearly as exciting as other home projects, but it’s the best bang for your buck with around 108% return. Some of the other top renovations include replacing your entry door with a steel door, replacing your garage door or a minor kitchen remodel.
As you think about renovating your home, remember these two important tips:
1.Consider the projects that cost the least because they bring the highest ROI.
2.Make sure your home essentials are up to par before you take on any other renovations.
Not all home renovations are done with the sole purpose to increase ROI, some are done to make your house a home. If you’re looking for ways to renovate your living space, check out these ideas on how to Spice Up Your Kitchen.
Lastly, big remodels can feel out of reach because of the cost, but using the equity in your home might be a smart way for you to borrow. Learn more to see if a home equity loan is the right option for you.
What are some home renovation projects you’ve been thinking about tackling lately? Let us know in the comments, we like hearing from you.