At some point, you will be faced with a decision. You've saved money for home improvements, but which ones do you do that will add to your quality of life AND to the value of your home if you decide to sell it down the road? Research has answered some of those questions for you, but in the end, YOU decide where and how that money is spent. Let's look at 7 Home Improvements that add the most value.
THE LIST:
Redo your kitchen.
Redo your bathroom(s).
Install new flooring.
Get new roofing.
Upgrade insulation.
Replace garage door.
Install new windows.
Kitchen: You will hear time and time again that the kitchen is the heart of the home. So it wouldn't be a surprise that the kitchen has been found to be the the number one place to add value. Research shows that 10.2 million kitchens -- roughly one in 10 of all households are updated each year. What percentage of your house value should you spend on a kitchen? Experts suggest that homeowners should spend 6 to 10% of the home's value on a kitchen renovation. If your home is worth $500,000, spending between $30,000 - $50,000 will provide you with a 92.9 percent return. Not only do you get to enjoy your new kitchen, but you'll get most of the investment back when you sell!
Bathroom(s): Whether you remodel the primary bathroom or the guest bathroom or both, money spent here would be well spent. It doesn't have to be a total remodel. Sometimes replacing the fixtures, painting the existing cabinets, or installing a new shower door can improve your overall experience and still add value. According to Remodeling's “Cost vs. Value” 2022 report, a bathroom remodel can recoup around 53% to 58% of the cost put into the project. The biggest factors of a bathroom remodel that can increase a home's value include updating worn-out items, modernizing fixtures, and creating a more functional space. The study reports the average full bathroom remodel costs $26,574, for which homeowners can expect a return on investment upon resale of roughly 60 percent — about $15,944. In all 50 states, an average bathroom makeover increased a home's resale value by more than enough to pay for the renovation
New Flooring: Flooring can help add value to your home, but the added value varies as much as the types of floorings that are on the market. Some homeowners prefer carpet in bedrooms which give sleeping spaces a warm, cozy and quiet feeling. The disadvantages of carpet, in general, is that it stains, wears, can collect odors and holds onto dust and dirt. If you install brand new carpeting right before you sell your home, you can expect about 65% of a return on your investment. Other popular options for flooring are tile, hardwood, laminate, vinyl and concrete. All of these options are easier to clean and maintain and decrease problems with allergies. Buyers prefer consistent flooring throughout a home. Today the trend is leaning towards luxury vinyl flooring. It is extremely durable, can look very much like wood, if that is the look you are wanting, is water resistant, pet and child friendly, difficult to stain or scratch and looks luxurious. Not only does LVP often help homes sell faster, but it can also lead to a higher sale price.
New Roof: Is a new roof a good investment? Only if it needs to be replaced. While many buyers appreciate a new roof, if a roof is less than 10 years old and is functioning correctly (no leaks, no loose shingles) than you can leave it be. If your roof shows lots of wear and tear, then investing in a new high quality roof can increase the value of your home by improving functionality, energy efficiency, stability, and curb appeal for your property. Reports show that the average American homeowner spends $22,636 on a new asphalt shingle roof of midrange quality. That new roof will increase the home's value by $15,427, on average.
Upgrade Insulation: Sometimes adding value to your property isn't something that can easily be seen. Homeowners and buyers alike typically like to be able to "see" where their money is going. Upgrading insulation in a home is one of those value added items, but the benefits can easily be seen when the utility bills come in. The impact that the added insulation has on property value will vary based on the size of the home and the type of insulation that is installed, but some reports indicate that homeowners will enjoy a 2 to 6 percent increase in their overall property value. According to the EPA, homeowners who have quality insulation in their homes can expect to see an average of 15 percent savings on their heating and cooling costs. That adds up over time, saving you hundreds of dollars per year.
Replace Garage Door: New garage doors are a low expense solution with a high positive impact. With so many garage doors to choose from, replacing an old, worn-out garage door is like giving your home a facelift without spending too much money. A new upscale garage door replacement will cost around $3900 and will provide a return of around $3600. That's a 97.5% return rate! With this great added value, you can enjoy this investment for years.
Install New Windows: There are several reasons that people decide to get new windows for their home which can include updating the appearance of the home, wanting to improve energy efficiency, in response to damage after a storm or accident, or due to normal wear and tear. Although replacing windows on a house can be costly, the great news is that new windows have a high return rate, and you can increase that return by choosing windows with better energy efficiency. Minor upgrades don’t have as high of a return. An upscale window replacement has a return rate of about 70 percent. Enjoying the new look of your home and staying cooler or warmer can provide current and future value.
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