Whether or not you are planning to sell your property in the near future, or you just want to enjoy a few simple upgrades, you’ll likely want to fund projects that have a high return on investment. It is important to note that not all home improvement projects are created equal. We are here to help guide you through the home improvement process and recommend the projects that have the best return rates.
Before we get into specific home projects, let’s review some valuable resources for homeowners to reference when researching cost versus value. The Remodeling 2021 Cost vs. Value Report compares average costs for 22 remodeling projects with the value that those projects saw at resale in over 150 major U.S. markets. The report allows you to drill into data for your specific area to understand your city’s job costs, resale value, and cost recouped for popular projects and compare those numbers to national and regional data.
Another helpful resource is SoFi’s Home Improvement ROI Estimator. This calculator compares your project type to regional resale data so you can estimate a likely project return. Simply select your project, enter in some specifics, and see what type of value you could get in return. While these online resources might not be 100 percent accurate for your home and your neighborhood, they provide a good idea of what homeowners can expect for specific projects.
The most certain way to know what a project’s ROI could be is to consult your trusted real estate agent. Our agents at Helen Adams Realty know the local market conditions and buyer expectations and have relationships with vendors around town for every job. They can provide helpful advice on what to tackle first, what will pay off at the closing table, and what to focus on for the best return.
Bathroom Updates
On average, it costs about $10,500 to replace the tub, tile surround, floor, toilet, sink, vanity, and fixtures. You’ll get back an estimated $10,700 at resale, a recoup rate of 102 percent, according to a national report by HGTV.
Easy bathroom fixes like caulking a tub, painting baseboards, or changing out faucets and hardware can be done on a smaller budget with a quick trip to your local home improvement store. Remove dated wall coverings and apply a fresh coat of paint for another quick bathroom facelift. Other good tips for a high ROI would be to update the vanity and lighting. Making a room brighter helps rooms look fresh and up to date. Kitchens and bathrooms are especially prone to looking dated, so consider those rooms first on your to-do list.
Kitchen Remodel
Commonly called the heart of the home, the kitchen is often your home’s focal point and main entertaining space. According to BankRate, the average cost of a minor kitchen remodel is $26,214 with an average resale value of $18,927, resulting in 72.2 percent of your cost recouped. There’s no doubt that buyers see the value in a kitchen upgrade. The room can easily boost your enjoyment of simple everyday activities like cooking, entertaining friends, and sharing meals with family.
With an average recoup of a little more than 72 percent of the cost of a minor kitchen remodel, it’s a solid investment in your home’s future value. For more minor kitchen adjustments, consider replacing appliances with new, more energy-efficient models; refacing cabinets with new shaker-style wood panels; installing new countertops and a new sink and faucet; replacing hardware; adding new flooring, and repainting the walls.
Garage Door Replacement
An investment that is sometimes overlooked is the replacement of your garage door. With many homes featuring garage doors that are readily visible from the street, a good-looking garage door is high on the list when it comes to getting cashback on your investment. Bankrate's average cost for a garage door is $3,907, with an average resale value of $3,663, resulting in 93.8 percent of your cost recouped.
Not only is a well-working garage door extremely functional for your home, but this enhancement to your curb appeal will get you back close to all of what you spent on it when you decide to sell your home. A new garage door is one of the best ways to make the exterior of a home look better than before.
For more insight on the value of home improvement projects, call your preferred Helen Adams Realty agent. If you’re thinking about selling your home, reference our recent blog and tips for how sellers can best prepare for the spring market.
Looking for a real estate agent that will fit your needs? Give us a call. Our Relocation Coordinator, Carrin Smaw, will find the right Helen Adams Realty agent that can best help you and your family. While considering your preferred area of town and your current wants or needs, our Relocation team can help match you with the perfect agent for the job.