Remodeling can be an exciting — and daunting — adventure for homeowners. The thrill of shopping for new appliances and paint swatches is a dream many new homeowners can’t pass up.
However, not every renovation is worth the effort. How are you to know which home remodels or renovations are the most valuable? Often times the value isn’t apparent until it’s time to resell your home, but research on millions of homes sold across the United States could help you make the decision of where to start.
Ratio of Return on Renovations
When it comes to renovations, many people are lured by the idea of a shiny new kitchen, or a classy new bathroom. After all, it is true that a newly renovated kitchen or bathroom can net a reasonable increase in home value. However, the real renovations that matter are the less flashy, more practical ones, as US News notes.
According to the most recent version of an annual study done by Remodeling Magazine, the top five renovations in the New York area that bring the greatest percentage return on investment are:
- Bath remodel: 57% ROI
- Garage door replacement: 90% ROI
- Entry door replacement: 69% ROI
- Minor kitchen remodel: 75% ROI
- Siding replacement: 73% ROI
- Vinyl window replacement: 70% ROI
These remodels might not seem especially exciting, but for prospective home buyers and appraisers, they show that the home is not just aesthetically pleasing but functional. Especially in older homes, where weatherization is outdated and the infrastructure is aging, these remodels can increase the value of a home dramatically.
The Value of Renovating and Remodeling
For prospective remodelers, there are other factors to take into consideration as well. You’ll need to ultimately determine if the renovation is worth the home you’re living in. If it’s a small, dated home that barely cracks the $100,000 mark, putting in a $40,000 kitchen remodel is extremely impractical, as it won’t raise the value of the house by $40,000.
Instead, consider the renovations that will bring the home into the twenty-first century. New windows, siding, doors, and insulation, not to mention updated electrical equipment and pipes, will help the home’s overall appeal. These renovations, although not obvious and flashy, can end up saving homeowners thousands of dollars in maintenance and energy costs. Appraisers are sure to note that when it comes time to determine the value of your home.
As US News also notes, keeping up with these chores, and improving the infrastructure of the house can really help in avoiding larger bills down the road. When considering what to remodel, always factor in the amount of money you will be saving by renovating now, versus how much not fixing these areas could cost you over time.
For example: not sure if you want to replace the front door? Consider how much the cracks in the frame are costing you in energy bills. Are they big enough to let in some pests, water, or cold air? When you consider all the potential money wasters of putting off the renovation, the price-tag of a new installation and the time to do it really doesn’t seem so inconvenient.
Remodeling projects can be fun and exciting, but don’t forget to update and consider the oft-forgot portions of your home. Your home’s value and any future buyers will see the value in your thoughtful remodeling decisions!