What are the 9 Home Improvements With Great ROI (Returns on Investment)? Well, you probably already know that not all home improvements are created equal. Some give great return on your investment, others not so much. Make the most of the money you have available. Especially, if you’re looking to take out a loan to cover the costs then you want to choose wisely. See the 9 improvements you should consider.
Key Factor:
- Just over 60% of Americans are doing or have done a home renovation project in the last couple years.
- Rule of thumb don’t spend more than 10 to 15 % of your home’s total value on only one room in your home
- If the right improvements are done well then you can see returns of 89 to over 100% ROI. Of course, this depends on the quality of the improvement
Calculate Your ROI
If you want to calculate your ROI or potential ROI, take the amount that you made (your return) on that particular investment and divide it by the cost of the investment. Do that and you end up with a percentage or ratio. That’s your ROI.
Now, the only problem is that it’s difficult to figure out individual ROI on a part of your home. These estimated ROIs are just that, estimates. So, study your home and figure out where your money can have the most impact.
Housing prices have skyrocketed and your house will sell no matter what but some homeowners want to get more from their investment so improvements are part of the plan.
Here are the 9 Home Improvements With Great ROI you’ll want to consider that give the greatest profit on your time and money or ROI.
1. Landscaping for Curb Appeal and High ROI
Nothing grabs a potential buyer’s attention more than great curb appeal. When they pull up in front of your house you want to WOW them. It’s like the gift wrapping on a gift. It’s a promise of what’s to come inside and gets everyone excited.
You can get some traction for under $5,000 and this generally gives 100% ROI. Get some quotes and listen to what is recommended. Maybe your yard just needs tidying or trimming of lines.
2. Your Bathroom Remodel a Top Home Improvement
Bathrooms are personal, so buyers don’t want to feel they are in someone else’s bathroom. Depending on your current bathroom’s appearance, you could update aspects of it that bring the whole bathroom up.
Look at changing out or improving: Lighting, sink, faucet and bathroom cabinet. Try a new lighted mirror and updated shower head. Nothing is less appealing than a mildewed shower so replace the caulk, clean the grout, and replace the shower curtain.
You’ll be amazed at how small updating changes can make a huge difference but it you need more involved changes look at replacing tiles, and installing a new concealed toilet to update the bathroom.
The average cost of minor bathroom remodel is just over $10,000 but give a ROI of 102%. That’s pretty great.
REMEMBER:
Just using the 9 Home Improvements With Great ROI isn’t all you need to do. If you’re selling, de-personlize your home especially the bathroom. Give the appearance of a hotel bathroom that’s just been prepared for visitors! Hide brushes, shampoo and makeup. DO put out clean new fluffy towels and upscale soaps.
3. Complete Bathroom Overhaul
If you choose this one from the 9 Best Home Improvements With Great Returns on Investment, we’re talking gutting the entire bathroom for a complete update and uplift. This can cost over $25,000 but gives you an almost 95% ROI.
4. Kitchen Updates a Home Improvement Booster!
Just like the bathroom buyers want an updated and sparkling clean kitchen. This can make or break a deal so it’s well worth your time, attention and some money. The average spend on a kitchen re-do can be around $15K but again your ROI is almost 100%.
Look at your cabinets. Can they be painted, get new knobs or will you need to replace the doors? Are your oven, stove, dishwasher, and fridge showing their age? Replace them with newer models that sparkle. Under cabinet lighting can be impactful. Also look at removing an upper cabinet or two and adding a floating shelf for an updated look.
Again, you don’t have to go overboard to make a big difference.
5. Attic Renovation is a Top 9 Improvement
Going into the attic can be quite pricey but if your home would be greatly improved with an extra bedroom or a playroom then definitely consider an attic conversion.
Get several quotes from attic conversion companies and listen to the ideas they present. If you’re on a budget, ask them what’s the minimum you can spend to get the extra room. Also, ask if a permit or prior approval is needed and whether they take care of that.
You could spend as much as just under $40K but here again, your ROI is high at over 90%.
6. Complete Kitchen Remodel for Great ROI
This usually means going back to the bare walls and building out with new cabinets, counters and appliances. You get the picture. Sometimes reconfiguring the kitchen brings a new look along with a better more efficient layout and use of space. Look for varied shapes and sizes of cabinets that break up that old sameness across the entire kitchen. Even look at throwing in a piece of furniture instead of a wall of matchy matchy cabinets.
This complete re-do can cost an average of $44,000 but again can entice buyers to buy and give you over a 90% ROI.
7. Change out Your Front Door
Again, this is about curb appeal but it’s also about insulation and security. Choose a new door that fits your exterior look but also keeps your home cool in the summer and warm in the winter. Choose a solid fire-safe door with attractive hardware and sufficient locks. A door that does all this can cost almost $1500 but is well worth it at an ROI of just over 90%.
8. Add/Upgrade A Deck or Terrace as a Fantastic Home Improvement
Comfortable and inviting outdoor space gets folks excited. They love to picture themselves relaxing with family and friends and outdoor space really makes a difference. Also, it improves the interior because it adds to the view. These can cost a bit over $10K but are well worth it at 90% ROI.
9. Go Underground to Improve Your Basement
Just like the attic, you can add useable space. Having said that, it depends on the basement and on the buyer as to how valuable fixing the basement can be. It depends on if you want to just add a workout room you want to add a guest room. Obviously what you’ll need to do differs quite a bit. Think about the amount of natural light because that could affect your decision on the end use. Basement upgrades can be expensive over $50K to add walls, new flooring, improve lighting, and even dampproof it. Having said that the ROI is great at 90%.
Another option is to do the bare minimum so that it’s not a creepy scary place. Think about improving the lighting, adding great storage, and new flooring so it’s a super usable space.
Bonus Improvement:
An Often Overlooked Improvement – Get New Windows
With energy pricing going up and up and up, if your home has outdated windows then you could be at a disadvantage when you go to sell. Buyers want energy efficiency and convenience of easy-to-use windows that look good. You could spend close to $10K and see an ROI of just under 90%.
Financing Your Home Improvements
It’s possible you have saved up money for your home improvements and that’s great. But, if you haven’t got savings for the changes you’re considering and are thinking of borrowing money, consider all your options. Borrow from family and friends, get a loan from your credit union, or take out a home equity loan. If all other options don’t work out you can look at a personal loan or look at how much you can borrow with a payday loan to make your improvements.
Get Professional Advice on Your Home Upgrades
If you don’t know where to start, a seasoned real estate agent can be a big help. They can give you an idea of where to put your time and money. Even if you’re not ready to sell, many would be very happy to give their input perhaps in hopes of getting the listing when you are ready to sell. Remember though you are not obligated to list with that agent.
Bottom Line:
If you decide to go for 1 or 9 of the Best Home Improvements With Great Returns on Investment you now know that different home improvements give different ROIs. Get advice on which, if any, home improvements are necessary for selling your home in today’s market. If you decide to go for minor upgrades or full-scale improvements check out trends and consider less personal preferences for what truly sells.
