You didn’t buy a house so you could get rich. You bought one because it’s a very useful thing to have. In addition to keeping your family and pets warm, it prevents your stuff from getting wet in the rain.
Your home may not be the kind of investment that helps you retire early, but it’s an investment nevertheless. You want to maintain it so it doesn’t depreciate in value. And if you pay for renovations, you want ones that will increase your home’s market value to the greatest degree possible.
Building an addition to your garage, bathroom, family room or master suite may make sense for your own personal reasons. If it improves your quality of life, so much the better! Ironically, none of those additions would add very much to your home’s market value. They have low returns on investment (ROI), which is also true of sunrooms, in-ground pools, home theaters and outdoor kitchens.
If you want a home improvement project that promises an ROI of at least 95%, then check these out!
New Garage Door – 103% ROI
Garage door replacement is one of the few home improvement projects that are usually profitable. That’s partly because homebuyers really like the prospect of easily parking their cars. If you have a two-car garage, its door accounts for about 360 square feet of your home’s exterior. That makes a huge contribution toward curb appeal!
Bathroom Remodel – 102% ROI
Do you know what else homebuyers like to see? Nice. Bathrooms. You enjoy them as well, which makes a bathroom remodel a great use of your money. Take care that not all bathroom remodels are created equal. A minor bathroom remodel is likely to have the greatest ROI – about 102% – whereas a major one can have an ROI of less than 90%.
Manufactured Stone Veneer – 102% ROI
Are you tired of having the same old vinyl siding as every other homeowner in your neighborhood? Thanks to the magic of manufactured stone, you can make your home pop with a tasteful veneer – as well as increase your home value by more than the sum of your upfront investment. Stone veneer also has staying power, and still delivers a respectable ROI of 94% if you decide to sell nine years following installation.
Entry Door Replacement – 101% ROI
It’s not as big as a garage door, but the front door still contributes a lot to a home’s curb appeal. It’s often the very first thing homebuyers notice. So long as your new entry door is (A) secure, and (B) a reasonably attractive color, you’re not losing any equity by buying it.
Landscaping – 100% ROI
By now you have noticed a theme: if an improvement project enhances your home’s curb appeal, then you can realistically expect to break even. Landscaping could be as simple as planting a few trees and flowerbeds, but a snazzy new patio and retaining wall won’t have the wrong kind of effect on your home value, either!
Kitchen Remodel – 99% ROI
If it’s thoughtfully designed and not extravagantly expensive, a minor kitchen remodel can ultimately break even. As with bathrooms, expect a diminishing ROI the more you invest into your kitchen. At worst, you may realize an ROI of less than half your initial investment. Even so, a home’s kitchen and bathrooms have so much influence over homebuyers that you can never go truly wrong remodeling them.
Vinyl Siding Replacement – 95% ROI
Vinyl siding may not be the most exciting exterior on the market, but it’s popular for a lot of good reasons. The financial benefits of installing new siding aren’t limited to higher market value, either. New siding can improve your home’s energy efficiency, promote greater structural integrity, and reduce your ongoing maintenance costs. It’s certainly something to consider if your current siding is over 30 years old.
Securing the highest possible ROI out of your next home improvement project isn’t as easy as snapping your fingers. You’ll need an experienced and honest contractor if you want to create true value. Fortunately, finding one in Central Minnesota is as simple as contacting Wensmann Contractors. We’re here to improve your home – and increase your equity while we’re at it!