6 Renovation Projects that Deliver the Highest ROI
Every homeowner wants a perfect house that is updated, comfortable, and welcoming every time. Keeping your home up to date on the current home design trends can force you to dig more into your savings pocket, and these renovations may seem never-ending.
When you are analyzing the improvements and repairs that you plan to make on an investment property, you certainly want to get the best return on investment (ROI) for each project.
Below are several renovation projects that you can include to deliver the highest ROI when you are ready to market your property.
1. Garage Door Replacement
The latest garage doors with their innovative styles and materials can provide a focal point for your property and really impact the curb appeal. Now you aren’t limited to the old-style metal and aluminum garage doors. There are also rustic wood options that come in a variety of styles. Consider how garage doors can elevate your property’s architectural style and attract more buyers. An upscale new garage door costs around $3,140 but has a return on investment of about 90.1%. On the other hand, a mid-range new garage door that costs about $1,650 has an ROI of approximately 91.5%.
Apart from delivering the highest ROI, replacing the rustic garage doors in your home will provide a dramatic and immediate enhancement to your home’s exterior. And when selling homes, the first impression is vital to potential buyers—and a new garage increases their desire to buy.
2. Kitchen Remodel
The kitchen can make or break the sale of your property. Updating the kitchen in your house can really make your home difficult to walk away from to potential buyers. Renovating the kitchen can be expensive, but you can start with the following projects:
- 64% return on floor update.
- 67% return on cabinet update.
- 70% return on wallpaper or paint update.
- 74% return on countertops update.
3. Hardwood Flooring
Another home renovation project that comes with a higher ROI is installing faux hardwood flooring in your property. According to the National Association of Realtors (NAR) report, homeowners have reported a 106% return on investment from installing wood floorings.
On average, the cost of installing a new hardwood flooring is about $4,700, and homeowners can recover around $5,000 when they sell their homes. Apart from having the highest ROI, hardwood floorings increase a sense of enjoyment and accomplishment in your home.
Typically, hardwood floorings last longer when properly cared for. It‘s always best advised to tackle the living room space with new faux hardwood flooring, if not all the rooms in your home. Since hardwood floors may occasionally scrape, scratch or dent, you need to refinish them every three to four years to maintain their value.
4. Entry Door Replacement
Although simple, replacing the front door of your property will hugely improve the value as soon as it gets installed. However, ensure that the style you choose fits perfectly with the style of your home. This is because if the style does not match that of your home, the return on investment may reduce.
Grand entrance fiberglass doors have a return on investment of about 67.6%, fiberglass entry doors have an ROI of about 72%, and steel doors come with a higher ROI of approximately 101.8%.
5. Siding Replacement
Replacing the siding on your property can create a massive appeal to potential buyers by giving it a beautiful and fresh look. The return on investment for metal lap siding varies across the USA. The two different types of metals used for making siding are steel and aluminum. They are an alternative for vinyl, wood, and other materials as they are more durable, resistant to fire, and lower in maintenance for potential buyers.
Aluminum and steel siding will not blister, rust or rot, and they are also impenetrable to termites and resistant to fire. They come with a wide range of textures and colors to choose from. Maintaining aluminum and steel siding involves annual housing, refinishing using manufacturer-recommended paint, and using non-abrasive detergents to remove any stains.
Metal siding can last between 40 years up to the lifetime of the house when adequately maintained.
6. Turning the Attic into a Bedroom
With less and less appeal, an attic space on a property can be used for so much more than just storage space. Consider turning that unused space into a bedroom. On average, the cost of remodeling the attic into a bedroom is about $75,000, but you will recover around 53% of this cost when you sell the home.
You will need to get estimates for the changes you will do to the attic to bring the bedroom idea to life. These changes include adding a dormer, adding a bathroom, creating stair access, and strengthening the insulate, floor and finish.
Choose Renovation Projects that Add Value
Whether you want to increase your property value or interest, the main ROI avenue is renovating your property. However, before making any considerable changes to remodeling your entire home, it is worth comparing your budget with the current renovation trends to ensure you get the highest return on investment.
The renovations explained above, including garage door replacement, changing the attic into a bedroom, remodeling the kitchen, siding replacement, installing hardwood floorings, and replacing the entry door, will give you the highest ROI.
Andrea Erickson is a contributor to Innovative Building Materials. She is a blogger and content writer for the real estate industry. Andrea is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that increase property value, maximize energy savings, and turn houses into homes.