It’s not right to think of your home solely as a financial investment. Sure, it will appreciate in value. Sure, there are things you can do to help it appreciate in value. But at the end of the day, it is your home – something far more important than a stock portfolio or 401(k) could ever be. So long as a home improvement project brings you joy, it has served its purpose.
With that said, you would very much like to remodel your home in a way that maximizes your net worth. Maybe you’re preparing your home for the market. Or maybe you have no intention of ever selling your home, but would take heart knowing that your heirs will one day inherit a more valuable property. Here are the remodeling projects you should prioritize when your goal is to maximize value!
Some Projects Can Actually MAKE You Money
Don’t commence any remodeling project with the intention of profiting from it. There are no guarantees that you will find a buyer who values a remodel highly enough to pay more for it than you did.
With that said, the average return on investment (ROI) for a few home improvement projects is higher than 100%. Specifically, these are:
- HVAC conversion (electrification) – 103.5%
- Garage door replacement – 102.7%
- Manufactured stone veneer installation – 102.3%
- Entry door replacement (steel) – 100.9%
In other words, if you invest in any of the preceding home improvements, then you can reasonably expect to recoup your investment – and then some – if you sell your home immediately afterward.
Some Projects Have Higher ROIs Than Others
Converting your home’s HVAC to electric or replacing its garage door can be satisfying, although those aren’t the kinds of improvements people typically fantasize about. Here are some of the more exciting remodeling projects that will enhance your home’s value the most!
- Vinyl siding replacement (94.7%) – Exterior remodeling is one of the safest bets when you’re prioritizing “value added” remodeling projects. This is largely due to curb appeal’s inordinate influence over homebuyers’ decision-making. If your home’s siding is in especially poor condition, then you may actually profit by replacing it. (Note that fiber-cement isn’t far behind vinyl siding’s average ROI at 88.5%.)
- Midrange kitchen remodel (85.7%) – You’ve probably already heard how important kitchens are to homebuyers. The housing market certainly reflects this fact. But don’t overlook the value a more functional, aesthetically pleasing and energy-efficient kitchen would create for you. You deserve to enjoy a room that you spend so much time in!
- Midrange bathroom remodel (66.7%) – Bathrooms are second only to kitchens when it comes to most homebuyers’ priorities. When a bathroom is modern, attractive and clean, it makes favorable impressions and reflects positively on the home’s quality as a whole. Take care not to go overboard while remodeling your bathroom (and kitchen, too, for that matter). You are likely to realize a higher return on investment if you invest $10,000 into your bathroom than if you had invested five times as much. People are only mentally equipped to appreciate bathrooms to a certain extent!
- Roof replacement (shingles) (50.4%) – This home improvement project’s potential ROI is much greater when you consider other important factors. For example, if storm damage has compromised your roof’s ability to repel moisture, then the resultant water damage has the potential to cost you tens of thousands of dollars.
Let’s Boost Your Home’s Market Value
Are you looking for a general contractor that will truly maximize the value of your upcoming remodeling project? So long as your home is situated in the greater Twin Cities area, Angell’s Construction Services is at your service. Contact us today to request a FREE consultation!