Whether you’re looking to sell, refinance or simply make your home a better place to live, remodeling can be a beneficial process that can also save you money in the long run. However, not all projects are worth the time, money and effort. Some more substantial projects, like remodeling an entire kitchen or bathroom, will add a lot of value to your home, but not nearly as much as the renovation will cost you.
However, it’s important to remember that every house and homeowner is different. If you’re looking to sell and your kitchen is in an extreme state of disrepair, a full kitchen remodel might be the best way to get a buyer and most of your money back. No matter the cost or estimated added value, you should always take your current home and goals into consideration when you’re deciding which remodeling projects are best for you.
The home renovations with the best value are the ones that will help you towards your goals as a homeowner. For the best results, be sure to consult with experts and do plenty of your own research before you make any major decisions.
Tips for the Best ROI Home Improvements
When it’s time to get your house ready for sale, it’s hard to know which renovations will help you sell and which are just a waste of money. You should always consult with a local, trusted real estate agent before you start doing any major renovations, but here is a list of tips to help you get started:
- Make sure you’re adding value: If you’ve decided to remodel your home because you’re looking to sell sometime soon, you should only make improvements that will add value to your home. Any type of remodeling is expensive, so if you’re looking to increase the value of your home, you want to make sure your money is going to good use. To determine the ROI of a project you’re considering, look for information about how that remodeling project increased the value of other homes and consult with a licensed real estate agent.
- Bigger isn’t always better: You might think that a bigger renovation will lead to a bigger reward, but that isn’t always the case. According to a 2019 remodeling cost vs. value report, some of the most expensive remodeling projects, like a master suite addition or major kitchen remodel, had the lowest ROIs. Especially if your home is in relatively good condition, the best way to add value is often with several smaller, less expensive projects rather than one major remodel.
- Appeal to the masses: While it’s tempting to customize your home to the needs and styles of your family, you’ll want to make sure it’s appealing to as many people as possible if you’re going to put it on the market. Avoid any bold decoration choices, like bright wall paint or elaborate landscaping. While you might love how they look in your home, some buyers may not.
- Know your market: If you decide to sell your home through a real estate agent, you can rely on them for essential information about your area’s market. However, you can also do your own research to discover some things your agent might not know. Figure out what types of remodels are common in your area and what buyers like to see in homes. Then, you can use that information to decide which remodeling projects will make your house most desirable to buyers in your area.
- Go energy-efficient: Good insulation and energy-efficient appliances are great assets for any home on the market. As our society gets more energy conscious, buyers want to know that they won’t have astronomical energy bills in the winter or summer months. Energy-efficient appliances will also help give the home a modern and tech-savvy feel.
- Stick with the style and period: If your home was built in a specific era or made in a particular style, make sure your renovations don’t deviate too much from the original look. If you’ve got a Victorian-style home, don’t install modern-looking siding. With some exceptions, maintaining the authentic look, while still making it look new, is the best way to get your home ready for sale.
What Home Renovations Pay Off?
When you’re embarking on a journey to remodel your home to increase its value, it’s hard to know what remodeling projects pay off and what is just a waste of time and money. While most remodels will add value to your home, some are better investments than others. So, how do you determine which is which? The best tool you have is research. Look for information about which remodeling projects yield the most value at resale and cross-reference it with a list of projects you’d like to do around your house.
To help guide your decision-making process, we’ve created a list of remodeling projects that give you the best chance of recouping your money once you sell your home.
Replacing the siding on your home is another remodeling project that will add value. Siding comes in several different materials, but two of the most common are vinyl and fiber cement. Since siding is responsible for protecting the rest of your house from the elements, it’s essential to make sure that your siding is up-to-date and functioning properly if you’re hoping to sell. You can also replace other parts of your home’s exterior, like shutters, house wrap insulation and other accessories, to improve the look of your siding.
Unattractive or outdated siding can be a dealbreaker for many prospective buyers if they’re looking for a move-in ready house. While replacing your siding is a moderately expensive endeavor, you will recoup about 75% of the cost when you sell.
Job Cost: $16,036
Resale Value: $12,119
Cost Recouped: 75.6%
2. Entry Doors
Installing new entry doors, especially those made of steel, is another low-cost renovation that will increase the value of your home. Steel doors are in high demand because of their ability to help insulate your home. However, any new entry door will add to the value of your home. They serve as the “face” of your home, so they massively contribute to curb appeal and first impressions. Doors can be elaborate or simple, a centerpiece or a subtle addition ?— it all depends on the rest of your home and how you want it to look.
Installing a new steel door is a great way to add value to your home if you’re on a tight budget or just looking for a project that won’t take a long time to complete. A new one will cost about $1,800, recouping about 75% percent of the profits after the sale.
Job Cost: $1,826
Resale Value: $1,368
Cost Recouped: 74.9%
3. Vinyl Windows
Installing new vinyl windows will also increase the value of your home. Windows are an integral part of your house’s design ?— they allow light to come in, you to see out and air to flow freely through your home. If your home has too many windows, you won’t have any privacy ?— and if your home doesn’t have enough windows, you’ll feel gloomy and isolated. Installing the right windows for your home is an essential part of increasing your resale value, so you’ll need to know the various options and styles to make the right decision.
New vinyl windows cost about $16,800 and add about $12,300 to the resale value of your home. With so many styles and colors to choose from, you can pick out the best look for your home to attract potential buyers.
Job Cost: $16,802
Resale Value: $12,332
Cost Recouped: 73.4%
If your roof is more than ten years old, replacing it will add significant value to your home. While some experts disagree on the specifics of when you should replace your roof and how much you’ll recoup after you sell, many agree that the project pays off if your roof is more than a decade old. Replacing your roof is an expensive remodeling project, but you’ll be able to recoup about 68% of the cost after you sell.
Job Cost: $22,636
Resale Value: $15,427
Cost Recouped: 68.2%
What Home Renovations Don’t Pay Off?
If you’re looking to sell or increase the value of your property, it’s best to avoid home renovations that don’t add value. Major home projects can be costly and time-consuming, so you want to be sure you’re getting your money’s worth. Of course, you should always consult with a real estate agent before you commit to any major renovations, but you can still do some of your own research.
Avoiding home renovations that don’t pay off can be a tricky task, so it’s essential to compare the price of the project with the value it will add to your home. To help guide you, we’ve compiled a list of projects to avoid when renovating your home.
1. Hardwood Floors
If you’ve got hardwood floors in your home that are in relatively good shape, there’s no need to refinish or replace them completely. If you’re looking to improve the look and increase the value of your hardwood floors, there’s a simpler way to do it. A good cleaning, some light sanding over problem areas and a layer of polyurethane are enough to breathe new life into your hardwood floors. Even if they don’t look perfect, they won’t take much away from the value of your home. Some buyers like the look of slightly worn, rustic hardwood floors.
Installing wallpaper is an expensive process that offers a minimal payoff. Since wallpaper adds a very personal touch to your home, it doesn’t contribute much to the resale value. It also gives the house a dated feel and can make it look older than it is.
3. Excessive Landscaping
While maintaining the landscape around your home is essential to increasing its curb appeal and value, you should avoid over-landscaping. Too much landscaping can make the home feel too personalized, which decreases the value of the home. To keep your yard trim and polished, hire a professional landscaping company. You should also avoid adding any unusual landscape features, like ponds and statues.
4. Full Kitchen Remodel
If your kitchen is somewhat modern and in good shape, there’s no need to do a full kitchen remodel. Kitchens are extraordinarily expensive to redo because you have to pay for both the new appliances and the labor it takes to complete the remodel. In most cases, a major kitchen remodel can cost anywhere from $66,000 to $131,000, but you’ll only recoup about 60% to 62% percent of the cost back after you sell.
These projects prove that, when it comes to remodeling projects, bigger isn’t always better. While it might be tempting to undergo an extensive remodel like this because it yields a noticeable difference, it’s not always the best route to take for every home. Generally, it’s better to do several smaller projects because they cost less money and add more value to your home.
Carpeting is another example of a renovation that makes your home feel dated, rather than new. While some buyers will like carpeting in the bedroom, carpeting is an undesirable feature in every other room of the house. It gives the room an outdated feel and is very difficult to keep clean and looking nice. If you’ve got carpeting in your home, buyers will probably try to peek under it to see if there is a decent floor underneath.
How to Plan Your Next Renovation Project
To get the best ROI home upgrade, make sure you hire licensed and insured contractors to get the best results possible.
Sunshine Contracting is a professional, family-owned and operated exterior contracting business that can make sure your home gets the most value out of its renovations. We have over 20 years of experience and use the same crew for every installation, unlike other companies that subcontract their installations. Sunshine Contracting’s in-house installers are factory trained and certified in their trade. We stand behind our work with a ten-year Labor and Workmanship Warranty.
We offer a free estimate and in-home consultation, so you know you’re getting the best deal possible. With our lifetime warranties, you’ll never need to remodel the same parts of your house twice.
To get your free estimate, contact Sunshine Contracting today!