Home Improvement Return on Investment
While there is no 100% guarantee when it comes to the return on investment of home improvements, most projects will probably increase the amount of traffic and showings your home receives, which is extremely valuable. If you want to see how much money your improvements will bring in, keep reading to learn about the most common home improvement projects and their ROI. You can also make some of these improvements yourself and have a higher return on investment on your next home improvement project.
Remodeling a kitchen
Adding a new kitchen can increase your home’s resale value. Many buyers place less importance on living rooms and master bedrooms. A renovated kitchen can help your home stand out to buyers, increasing its sale price and speed of closing. Of course, these aren’t the only benefits of remodeling a kitchen. There are several other reasons to upgrade your kitchen, including the fact that buyers are willing to spend more for high-end finishes.
According to a recent study, 91% of homeowners who remodeled their kitchens felt happier after doing so. Another 56% said their new kitchen was the perfect place for entertaining. While all kitchen renovations increase home value, not all upgrades increase the joy scores. The kitchen’s size and location can affect the overall value. Also, major demolition will lower its value. Therefore, it’s important to consider the emotional and aesthetic value of a kitchen before investing in remodeling.
Remodeling a bathroom
Most homeowners choose to remodel their bathrooms in order to increase the enjoyment of their time spent in the shower or bath. Bathroom remodels can also increase the value of a home. It is important to choose bathroom remodels that will give you the most return on investment, but won’t drain your budget. A full bath remodel is usually worth about 5% of the house’s value, while a half bath remodel can bring in around 10%. It’s important to understand that the ROI of a bathroom remodel will vary depending on the size of the project, the materials used, and the layout of the room.
While the resale value of a bathroom remodel won’t increase the overall value of a home, a new bathroom can boost the sale price of a house by as much as 3%. Although remodeling a bathroom doesn’t necessarily increase the resale value of a home, it is a good idea to update the bathroom before listing it. A fresh, updated bathroom can inspire potential buyers to make an offer on the home.
Adding an attic
The most significant factor in the return on investment of adding an attic is the amount of space you gain. The finished space in an attic can add up to 60% of the overall cost of the project. However, this figure does not take into account the cost of installing new plumbing and electrical lines. Many municipalities require licensed professionals to perform these tasks. In fact, you can often complete some tasks yourself and save about 40% of the cost of labor.
The cost to remodel the attic varies, but the return on investment is often high. A typical attic remodel costs anywhere from $8,000 to $80,000. This will vary greatly depending on the level of renovation, the size of the house, and the amount of furniture that needs to be purchased. For example, if you want to add a bedroom, a bathroom, a closet, and built-in storage, the cost will be about $30,000.
Replacing aging windows
Replacing aging windows can increase the value of your house and boost your resale value. Though replacement costs may initially seem expensive, after a few years, the additional value your home receives can make the cost balance out. In fact, some homeowners see their initial investment recover as much as 70 percent of its cost. That means in just a few years, you can get back more than $300 of your investment!
Investing in energy-efficient windows has many benefits. Besides reducing your electric bills, they also increase the resale value of your house. Today, homebuyers are actively looking for homes that are energy efficient. Moreover, replacing outdated windows with modern ones increases the home’s value and sellability. In fact, it’s proven that installing new windows increases the return on investment of home improvement projects by 68.6%.