Home Improvements are a form of investment. It’s always a smart move to remodel your home with the return on investment in mind. Whether you’re selling your home now, in six months or in a few years, any investment you make on repairs and improvements, will pay off at the time of selling.
Not all home remodeling projects are created equal — especially when you’re trying to get the biggest bang for your buck when it comes time to selling your property. So before you spend thousands of dollars on that home remodeling project you’ve been dreaming about, make sure that you’re armed with the facts first.
We’re going to tell you which of the most common home renovation projects are worth the investment, and which ones you’re better off doing without. The answers may surprise you.
Roofs and New Siding: Not Very Glamorous but Quite Impactful
Remodeling Magazine reports that you’re more likely to recoup your investment on such features as your roof or your siding than you are on bathroom or kitchen remodels.
In fact, siding replacement recouped 92.8 percent of its investment while roof replacements recouped 90 percent or more at resale. Roofs are one of the most important factors for homebuyers in the NYC Metropolitan area.
What’s more, a recently replaced roof or new siding tells buyers that their maintenance costs are going to be low to non-existent for the first few years. And it’s impossible to understate how important that is to buyers.
Kitchens: A Sound Investment or Not?
The consensus is unanimous: Kitchen remodels are an excellent way to spend your home renovation dollars — but only if you don’t spend too much out the gate.
As per Remodeling Magazine, minor kitchen remodels (in the ballpark of $15,000 or less) returned 92.9 percent of the investment. That number dropped off on bigger remodeling projects in the kitchen.
Some features to focus on in the kitchen include all wood cabinets, commercial-looking appliances, stone floors and granite countertops.
How About Bathrooms?
Bathrooms are also a fantastic place to invest your home remodeling dollars. Often, home owners are pleasantly surprised to discover that they get a 100 percent plus return on their investment. According to Remodeling Magazine, midrange bathroom remodeling projects have around 90% ROI, also known as a return on investment.
Some features that you may want to focus on during a bathroom remodel include floor-to-ceiling steam showers and walk-in showers. And if you only have one bathroom in your home, spend your money on adding a second bathroom instead of remodeling the only bathroom you have.
Smart Home Technology
The Zillow Group Report found that 42% of Generation Z buyers and 37% of millennials rate smart home technology as highly important in their home search. These smart technologies come in many forms like smart light controls, music system in the shower, colored light control via smartphone app and much more.
Smart thermostats are a popular and relatively easy addition.Buyers also look for things like voice-assistant-controlled light bulbs. They can help your home compete against new construction homes, which often come packed with smart home features.
Give Buyers Extra Room to Grow
Finally, consider adding another room to your home during a remodeling project.
We’ve already talked about the benefits of adding a bathroom. But the same principles hold true for other room additions as well.
In fact, for every 1,000 square feet added to a home, your sales price will increase by more than 30 percent, according to a 2005 National Association of Realtors study.
One caveat to this rule: Don’t add so much extra space that your home becomes the most expensive home in the neighborhood. That’s a sure way to turn off home buyers.
Just a Few More General Notes About Home Remodels
Regardless of what type of project you select, remember that the following factors will also help determine your return on investment:
- The Value of Your Home
- The Value of the Homes in Your Neighborhood
- The Housing Market You’re Located In
- How Soon You Sell Your Home After the Home Improvement Project
- The Quality of the Home Improvement Project
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Hopefully you learned something today about home remodeling projects and how much they really benefit you as a prospective home seller.
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