Home improvements are another way to classify some of the best ways to invest in your home after you’ve bought and moved in. If you’re planning to sell your home for top dollar, you should increase its value before you do, and renovations are the golden ticket to doing just that. If you want to grow your net worth, your goal should be to make improvements without spending more than the net value of the return you’ll get on selling your home.
While it’s not that likely that you could lose a ton of money on a sale, there seems to be a trend homeowners find when it comes to renovation value; not all home renovations are created equal. In this post, we’ll discuss home improvement projects with high ROI so you can rest assured that the renovation is more an appreciative investment than an expense.
What Is A Return On Investment (ROI)?
A return on investment refers to the amount of money you can get when you sell your property after making some improvements. A 100% return means that you recover every dollar used on the project. To calculate the ROI of your home, you should take the current value of the investment, less the cost, and then divide it by the cost of the investment. Now it’s worth taking a look at what renovations grant the most reliable returns, close to or in excess of 100% ROI.
If you’re looking for a sizeable ROI, you can make a kitchen renovation or kitchen remodel your first choice. You can start by upgrading your appliances and furnishing cabinets. A fresh coat of paint combined with new hardware will also provide a surprising improvement. But you can go a lot farther than that. Adding other upgrades like an island, slide-out compartments for pantry or cupboard space, and walk-in pantries or hanging dry racks & pan racks – are all totally transformative for the space. Pendant lights or embedded spotlights can frame the aesthetics of your kitchen in luxurious new ways, and adding bulkheads can give the impression of a fuller space. The return on investment is worth it even if you don’t do a complete kitchen upgrade. A minor kitchen remodel can give you a very high ROI, sometimes even over 100%.
A Fresh Coat Of Paint
The first thing potential buyers see is the colour and texture of your home exterior. You want to give them a fresh impression. Neutral colours make it easier for buyers to imagine living in the space if it goes with just about anything.
Adding a fresh coat of paint is the least expensive investment that can result in big returns. According to home renovation experts, painting the exterior of your home can give a very high ROI given the relatively low cost of the paint. Think about it – many buyers don’t want to spend extra cash to paint after spending so much money and time choosing a house. As long as the colours are complementary, they can perceive the entire colour scheme as more valuable.
For the interior, you might choose warm to neutral colours. You can try using tans, beiges, greys, gold, or greige (a blend of grey and beige).
Small rooms appear larger when painted with pastel colours. If you want to create an illusion of a larger space, you should paint the walls and trim them the same colour. If you want the room to appear smaller, you can paint with warm or dark colours. A more colourful nook will emphasize unique features.
Refinish Hardwood Floors
We can’t deny the fact that beautiful floors give the first impression. Dull or neglected wood floors are a turn-off for many buyers. The primary reason behind refinishing the floors is to replace worn-out materials and surfaces. New flooring is exceptionally high ROI, worth at least 100% of its cost due to the clean and inspiring look it brings. Hardwood floors are durable and beautiful. If the existing floor is beyond repair, you may want to lay down a new one. Hardwood flooring especially has a beautiful, natural aesthetic that buyers seem to love year after year.
If you don’t want to demolish your bathroom, you can replace the toilet tub and sink. Even a simple improvement like replacing a shower head can make a big difference. Things like adding wall coverings or replacing the shower doors can give an illusion of an upgrade. When going through an entire bathroom remodel, you can get up somewhat high ROI, provided the space has amazing new aesthetics and functionality. The return on investment for a bathroom remodel depends on many factors, but bathroom remodels are a great complement to other upstairs or basement renovations.
New Front Door
The front door of your home can make a big difference in the value of your home. It’s the first thing potential buyers see. Homeowners should put their best foot forward to increase curb appeal.
Since the door opens hundreds of times each year, any wear can significantly affect the curb appeal, which in turn affects the ROI whenever you choose to sell your home. That said, the style of the door can be eye-catching or a turn-off for your home. Your return on investment can be as high as 60-70%.
Upgrading Curb Appeal With Exteriors
The curb appeal for your home matters. It’s the first thing potential buyers see even if they don’t get inside. Maybe new landscaping is what your home needs to look fresh and appealing. But you don’t need to go overboard – the best exterior designs are often the simplest.
If you want to get a high ROI, you should create a landscaping or outdoor living room plan that matches the architectural style of your home. The ROI for home renovations is determined by where you live, timing, project type, and the real estate market. On average, the best home renovations can give an ROI of 70-80%. Again, not all home improvement projects are created equal. While things that increase the curb appeal and interior guarantee a high ROI, kitchen renovations tend to provide the best return on investment (ROI).