One of the most fundamental questions to figuring out what to renovate around your home is this: How much money am I going to get back when I sell my home? The answer is never cut and dry because there are factors that impact return-of-investment (ROI), such as the neighborhood or the current real estate market. Additionally, certain home improvement projects have better ROI than others. Pools, for instance, have the lowest ROI, so unless you want one for yourself, those are best to avoid.
What about the greatest return on investment? Should you get a new roof or a new bathroom? Let’s find out.
Bathroom Remodel
Let’s face it. There are few people who can tolerate a terrible, cramped bathroom with decrepit furnishings. By upgrading your bathroom with basic or mid-grade features, you’re doing yourself and potential buyers a tremendous service. You can replace your tub or shower, light fixtures, storage units, toilet, and sink with basic yet newer models and have great ROI down the road. It’s estimated that a major bathroom remodel costs around $26,000. The average return is around $24,000, or a 93% ROI.
Thinking of adding a bathroom instead? That will serve you well, too. A small bathroom addition costs around $14,200 and has an 81% ROI. Though it’s not as lucrative as a remodel, you can still capitalize on that.
Mid-Range Kitchen Remodel
Minor and mid-range kitchen remodels are some of the best things you can do for your home. Not only are you going to enjoy cooking and entertaining much more in your new kitchen, but you also get a fair share of your investment back once you move. Potential homebuyers are always on the search for the perfect kitchen and bathroom because those are spaces where we spend a lot of our time.
So while kitchens can cost a lot to renovate, they more or less pay for themselves. Luckily, you don’t have to do a lot of work on your kitchen to experience amazing ROI. Minor improvements, such as painting, staining cabinets, upgrading the countertops, or purchasing new appliances, will yield incredible results.
Spend your money wisely. Select your appliances, colors, and design to maximize use and ROI. You won’t regret it.
Mid-Range Window Replacement
What does a mid-range window replacement call for? Take a gander around your home. Some of the windows are probably outdated and crumbling, especially if you own an older home. These windows are sucking your wallet dry by negating insulation. Purchase newer windows solely for the ones that are worse-for-wear. If you spend around $5,000 on window replacement, you’re going to get around $1.15 back for every dollar you spend, meaning $5,750 back in your pocket.
Keep this in mind: you don’t need high-end windows. A mid-grade window looks better, increases functionality, and will help regulate the temperature in your home, too. Your quality of life goes up!
New Roofing
A new—or close to new—roof is always going to be a major selling point in the real estate market. Why? Because the next homeowner doesn’t want to have to deal with the overwhelming cost of a new roof or extensive repairs they weren’t prepared for. So when you renovate the roof, you are not only adding value to the home, you are giving the property more appeal.
In fact, when it comes to buyer appeal, higher home value, and homeowner happiness, a new roof has the highest return of investment out of any home improvement project. Cost recovery alone is 105% of what you originally paid, meaning that you’ll get more in sale after getting a new roof.
Depending on which kind of materials you purchase, the average cost of a new roof is around $7,600-$10,000. If you put $7,600 into a new roof, you’ll potentially make $8,000 on it during a sale.
So while a new roof might not be as glamorous as a brand new kitchen or bathroom, it’s one of the best things you can do for your home and wallet. Plus, you can change the exterior appearance of your home just by altering the color of the shingles. Why not consider investing in a new roof today?
Deck/Patio/Porch Addition
Have some extra room? Then you might want to consider adding a deck, patio, or porch onto your home. Giving your home an external structure increases the perceived value. Even if the overall value of the home doesn’t rise, you still get additional living space. The average cost of a deck, porch, or patio addition is around $11,000, and you get about $10,000 back when the property is sold. That’s a 90.3% ROI.
Basement Remodel
With the average cost of basement remodels going for $51,000, it might not seem like the wisest move but think of the opportunities. If your home is blessed with an unfinished basement, you can create more living space in whatever style you wish. Doing so will very easily generate more value—and a high ROI when it comes time to sell.
In fact, most homes with a remodeled basement have an average return of $46,000, meaning the ROI is 90.1%. That finished basement might even become the biggest selling point of your home!
Looking For A New Roof?
Whether you’re thinking about getting a new roof because it’s necessary or you want to sell your home and increase the value, a new roof is always a good idea. Home improvement projects are all about increasing the beauty of your home, and you can do that easily with a new roof. With plenty of materials and colors to choose from, you can even increase curbside appeal.
Why not give RGB Construction a call and start improving your home today?
