Owning a home means investing in its maintenance and upkeep. While some repairs and renovations are simply done out of necessity, others can actually boost the value of your home, which can come in handy either when you’re ready to sell or if you ever need to access some of your equity. It’s important to note, however, that certain projects are worth more than others. If you’re looking for a way to beautify your living space that will also pay off financially in the long run, here are the top five projects that will allow you to recoup some of what you spend.
Kitchen Remodel – ROI of up to 85%
Whether you go all out and rehab the entire room or are working with a smaller budget that only allows for a few minor changes, modifying your kitchen is one of the most profitable home renovation projects. For a basic, cosmetic update that won’t break the bank, try re-facing your existing cabinets and drawers, changing out the fixtures, updating your countertops and redoing your floor. If you’ve got more to spend, feel free to upgrade any of these options to something more extravagant.
Replacement Windows – ROI of up to around 72%
Modern home buyers list energy efficiency near the top of their must-have features when comparing homes. One of the easiest ways to make your home more eco-friendly (and thereby more marketable to buyers) is to install new energy-efficient replacement windows. Not ready to sell just yet? No problem. You’ll enjoy more money in your pocket on an ongoing basis thanks to the savings you’ll realize in heating and cooling costs (potentially hundreds or even thousands a year). That’s a great short term and long term payoff.
Siding Replacement – ROI of around 70%
There are a number of valid reasons why replacing your home’s siding can produce such a substantial return on investment. Firstly, modern siding is designed to be more energy efficient, which will save you money each month in your utility bills. On the flip side, new siding provides an added level of curb appeal, which is particularly helpful when you’re trying to market your home to prospective buyers. In fact, if you choose high quality materials, you may even be able to increase your asking price.
Bathroom Remodel – ROI of up to 70%
When asked what features and amenities they desired most, along with kitchens, 81% of new home buyers listed updated bathrooms. If your bathroom is outdated, it could cost you in the long run. The good news is, you don’t need a six-figure budget to modernize things. A few simple and affordable changes, such as a new sink and vanity, a fresh coat of paint, updated lighting and a frameless shower enclosure can dramatically improve the look and feel of the room, which can lead to more offers and at a higher selling price.
Roof Replacement – ROI of nearly 60%
Your roof is probably the last thing you think about – unless and until there’s a problem, of course. And while replacing a roof isn’t necessarily something you’d do unless warranted, when the time does come to consider new roofing, rest assured that it’s an investment that will pay off. Newer roofs are built to last, which is an attractive benefit to potential home buyers. And, like replacement windows and siding, the energy efficiency of a new roof will keep more money in your pocket until you’re ready to sell or refinance.
Whether you’re ready to put your home on the market or not, investing in a remodel project can provide both short term and long term benefits. Unless you’ve got a bottomless budget, however, it’s wise to consider which projects might provide the biggest return. The five jobs listed above should give you the most bang for your buck.