It's no secret that remodeling a home can be a costly endeavor. However, many homeowners are surprised to find out just how much they can get back in return for their investment. In this blog post, we will take a look at the real value of remodeling and discuss some of the most popular projects that will offer the best return on investment for your clients. So whether they're considering a complete overhaul or just a few small changes, read on to learn more about what they can expect.
4 Home Upgrades With The Highest ROI
Garage Door Replacement
A garage door replacement is a great way to improve the look of a home while also increasing its resale value.
According to the most recent Cost vs. Value report, a garage door replacement has a 93.8% cost recouped, meaning that it will add nearly as much value to the home as it costs to replace. This makes it the most cost-effective home improvement project a homeowner can undertake.
When choosing a new garage door, be sure to recommend one that is made with high-tensile-strength steel and includes two coats of factory-applied paint. Insulated glass windows in the top panel will help keep the garage warm in the winter and cool in the summer, and galvanized steel hardware will ensure the door lasts for years to come.
Manufactured Stone Veneer
Replacing vinyl siding with manufactured stone veneer is a great way to add curb appeal and increase the value of a home.
This project typically has a 92.1% return on investment, so it's a smart choice for homeowners looking to improve their home's resale value. The stone veneer will add a natural look to the home's exterior, and the extra layers of water-resistant barrier will help protect it from the elements.
Minor Kitchen Remodel (midrange)
A minor kitchen remodel is a great way to update your kitchen without breaking the bank. According to the most recent Cost vs Value report from Remodeling Magazine, a minor kitchen remodel has a 72.2% return on investment, making it a highly cost-effective home improvement project.
A minor kitchen remodel typically includes replacing cabinet fronts, countertops, appliances, and flooring as well as painting the walls, trim, and ceiling. By performing all of these updates a homeowner can get a kitchen with a fresh new look without spending a fortune. And with a 72.2% return on investment, a minor kitchen remodel is one of the smartest home improvement projects they can undertake.
Siding Replacement
When it comes to home improvement projects, siding replacement is a great option for those looking to add value to their home. Siding replacement has a 69.4% cost recouped, making it a wise investment.
When choosing to replace a home's siding, be sure to select a high-quality option that will withstand the elements and continue to look great for years to come. Fiber-cement siding is a great choice for those looking for durability, as it is resistant to both rot and termites. Be sure to include a continuous water-resistive barrier (WRB), such as house wrap, beneath the siding in order to protect the home from moisture damage. With proper installation and care, the new siding will help add curb appeal and value to the home for years to come.
How to calculate the ROI on a remodeling project
Any home remodeling project is a significant investment, and it's important to understand the return on that investment (ROI) before proceeding. The ROI is calculated by taking the value of the property after the remodel and subtracting the cost of the project, then dividing that number by the cost of the project.
For example, if a kitchen remodel costs $50,000 and adds $30,000 to the value of the home, the ROI would be 60%.
Remodeling projects with the highest ROI are typically those that improve curb appeal. However, even projects that don't explicitly increase the value of the home can still have a positive ROI if they make the property more attractive to potential buyers or make the home more energy-efficient (future savings for the new homeowner).
Ultimately, the best way for a seller to calculate the ROI on a remodeling project is to consult with you, their trusted real estate agent, or an appraiser who can provide expert guidance on what buyers in your area are willing to pay for.
Tags:
Remodeling
August 8, 2022