Existing home sales are also on an uptrend. This is good news if you are thinking of putting some money into your home with an eye toward resale value down the road. Not all home renovation projects are equal. In fact, few of them even come close to recouping their costs when it is time to sell your home. The average home renovation returns just 65% at sales time—and that is if the sale occurs soon after the project is complete. If you are looking to add value right away, the ideal renovation may not be a new kitchen with granite counters and stainless steel appliances or an in-ground pool. According to experts, like those at Remodeling Magazine, projects that boost curb appeal fare far better than improvements inside the home, with very few exceptions. Below are some home renovation projects with the best return on investment (ROI). Note that the costs cited can vary by locale. Be sure to consult your financial advisor and real estate specialist to determine if these updates are appropriate for your situation.
Install fiberglass insulation in the attic – There is nothing exciting about enhancing your attic insulation, but from a purely cost-benefit point of view, this is the best home improvement that you can make. According to the experts, you will see a 107% return on your attic insulation project, which will cost on average $1,200 to $2,000. Not only that, you will see a difference in your home utility bills in the interim.
Replace your front door – An automatic win when it comes to curb appeal, a new front door will return about 90 percent of its value in sales price. The most popular replacements for 2017 are stately stone veneer models and sensible steel doors. A welcoming and attractive front entrance is a winning feature with potential buyers and real estate professionals alike. The average cost for this update is $1,500 to $2,500.
Install new vinyl siding – This is probably not the project you want to tackle just before you sell your home unless your existing siding is a real eyesore. That is because it only returns about 80 – 84% percent at resale, although that is still excellent compared to a major kitchen remodel at just 65%. Just be sure to give some thought to your color selection—a nice taupe or beige with dark shutters, for example, disguises dirt and still looks elegant. Though costs can vary considerably, the average outlay is $12,000.
Upgrade your garage door – Another curb appeal home improvement, upgrading your garage door to an attractive wood or carriage-style garage door delivers about 80% of its cost when you sell your home. Garage doors with plenty of windows tend to do a little better than those without. Use one of the new remodeling preview apps to get an idea of what different doors will look like before you take the plunge. On average, you can expect to pay $2,300 to $3,000.
Switch to hardwood floors – Depending on where you live and the style of your home, upgrading your carpet or laminate floors to hardwood flooring can return 78 – 91% of the cost when you resell your home. Keep in mind that engineered wood products do not fare nearly as well, so go for the real thing unless you are not planning to sell right away. Look for a universally appealing finish, and keep in mind that oak is a perennial favorite among homebuyers. Your cost, on average will be $5,000 – $6,000.