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Home Renovations That Pack The Most Bang For Your Buck

Posted by Mani Bagga on Thursday, April 22nd, 2021 at 10:56am.

Home Renovations That Pack The Most Bang For Your Buck

Renovating a home can cost hundreds of thousands of dollars, depending on the project. It is not surprising that property owners want to get a good return on their investment. Not all home improvement projects are created equal, however. Some upgrades or updates have a much better return than others. These projects, detailed below, are more likely to recoup the majority of the expense with a higher resale value.

Siding Upgrade

Siding upgrades tend to be some of the most rewarding remodeling projects, in large part because they relate to a home’s curb appeal. The way that a home looks from the outside can affect the way buyers see it for the first time. For most property owners, the type of siding does not significantly affect the benefit. Vinyl or fiber cement siding can provide an ROI of about 75%. Homeowners who add a manufactured stone veneer might get back as much as 95% of that cost in resale value.

 

Minor Kitchen Update

Since the kitchen is such an important part of the home, its condition matters greatly to potential buyers. With the way that trends change, kitchens can appear outdated after only five to 10 years. A minor kitchen renovation minimizes cost while dramatically changing the look, for an ROI around 75% to 80%. This project presumes that the space has a great layout and cabinets in place. The rest of the kitchen gets an update with middle-of-the road finishes such as laminate countertops and resilient flooring.

 

New Windows

Under the categories of curb appeal and energy efficiency, new windows are an obvious choice. Windows change the way that the home looks from the inside and outside. New windows with wood or vinyl frames net property owners about 70% of what they paid. It is worth keeping in mind that window upgrade prices often depend on the number of windows. Homeowners are more likely to get a better ROI by replacing all of them at once.

Deck Addition

Property owners who are looking for a home addition that maximizes living space with a higher return should consider a deck addition. In many parts of the country, decks are useful year-round. They provide a great location for relaxation or entertaining — at the fraction of the cost of a room or floor addition. As such, the return for a deck addition is about 70%, depending on the material. Pressure-treated wood decks tend to cost less, so they have a higher ROI.

 

New Exterior Doors

Replacing exterior doors has the benefit of improving the home’s security, energy efficiency and curb appeal. Old doors may inadvertently date a home, or look out of place with new siding. As a lower-cost project, door replacement has some of the highest ROI for home improvement projects. A new garage door provides an instant update for a significant portion of the home exterior, resulting in an ROI around 95%. Steel entry doors have an ROI of 65% to 70%, but usually cost less than $2,000.

 

Minor Bathroom Remodel

Like the kitchen, bathrooms tend to show their age faster than other parts of the home. Additionally, features of the bathroom often do not last more than 10 to 15 years. A minor bathroom update replaces all surfaces in the bathroom and provides new fixtures. Material choices are current but not particularly high-end. These decisions keep the costs down while giving a new look. For this project, property owners can expect an ROI of about 65% to 70%.

Return on investment should not be the only deciding factor for home renovations, but it is an important one. Property owners must invest in the home, or else it will not be able to maintain its current value. By focusing on these projects, homeowners or investors can increase their resale value by the greatest proportion.

 

Author bio: Eric Krattenstein’s extensive marketing experience began at a boutique marketing agency where he developed dozens of successful innovative marketing strategies for brands ranging from startups to Fortune 500s. Prior to joining Asset Based Lending in 2016, Krattenstein served as U.S. Chief Marketing Officer for a European enterprise software company where he spearheaded the company’s expansion into the United States and Canadian markets. In his current role as Chief Marketing Officer, Krattenstein leads Asset Based Lending’s Sales and Marketing team that helps upward of 40 to 50 real estate investors close hard money loans each month.

 

 

 

 

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