5 Upgrades that Generate the Best ROI for Your Home
So you want to add on that nice home office huh? Well before you make the plunge you may want to consider what upgrades give you the best Return On Investment (ROI), even if you are not planning to sell in the near future.
Believe it or not, the best ROI is a new front door. Now we are not talking about so lavishly ornate entry way. No, we are talking about a new Steel Door. Nice and simple install with the bonus of added security. These doors come in a variety of colors and styles which you can match to your preference.
What you may be thinking Real Life
I was quite surprised to find the steel door yielded the best ROI. But the research does not lie and the value increase can land anywhere between 100% to 123%. Thant is a massive ROI for an upgrade that can be done in a day. Also, a quick tip: Remember to match the décor of you home with the style of the door, otherwise the ROI will fall short of the desired yield.
This is one of my favorites; A new Fireplace (in my best “Price is Right” voice). There is something magical about a fireplace, a book, and an adult beverage. I knew I was not alone in this sentiment but it seems to be a theme for builders who are building new homes. In 2013, 54% of all new homes built had more than one fireplace. Installing a fireplace will net you a cool 91% ROI. That’s not bad for something you wanted to install anyway. Right?
Everybody’s favorite part of the house is the kitchen! Being in the real estate business I've learn the importance of a nice kitchen. The kitchen can turn someone away from a house they were otherwise in love with. This is why when you are looking at houses the listing will say in the first two lines something to the effect of “New Updated Kitchen.”
Holidays, parties, and family meals make the kitchen the most used space in any house. When homeowners remodel their kitchen there are two key factors that drive their motivation: outdated (this includes the appliances, counters, paint, cabinets, and flooring) and inefficient layout. Strangely, these are the key things any homebuyer is looking for. If you feel your kitchen is not what it should be, it may be time for a remodel. And if this is the path you are considering the best ROI comes from a remodel that is equal to 6%-10% of the home’s value.
This one is every kids dream. Every child wants an attic bedroom. I blame it on “The Brady Bunch” for making it look so cool (Refer to the image Above). This is one of those projects that is purely optional. Not every house needs an attic bedroom. But with an ROI of around 85%-90% it may be worth looking into. Depending on the size of the attic space, the price of the improvement can vary. So you will need to do some measuring and I would also recommend looking into the building codes in your local area. Most (not all) codes will go by the “Rule of 7’s”, which state 7’ high by 7’ wide with 70 square feet.
This is the boring (and expensive) upgrade that has to be done eventually. The exterior is equally as important as the inside. So let’s boost the curb appeal of your home with a new siding upgrade. There are two main options when considering siding replacement: Vinyl or Fiber Cement (Hardiplank). Vinyl siding has a lower price point and a decent ROI at a little above 80%. While this is not a bad ROI, if you are thinking about a siding replacement look into the Hardiplank fiber cement. The cost is great than vinyl but there are a few advantages of this product. The primary advantage is perception. The fiber cement siding has cemented itself (I know I’m sorry, I couldn’t resist) as the “Best Quality” option for consumers. Homebuyers are now adding this to their wish list when looking for homes and they are willing to pay extra for it. If you are able to drop some coin on this upgrade you will get an 85%~ ROI when you sell,
Added bonus: There are quite a few style variations on fiber cement with something to fit every home. Here are a couple styles:
I hope this information was helpful to you! Whether you are remodeling for your own enjoyment or to prepare for the sale of your home, these five tips are sure to help you get the best return on your investment. New flooring, new paint, stainless steel appliances, and granite in the kitchen and bathrooms are always going to be the most popular renovation items that buyers want, and we recommend you address those items first if you are planning to sell. However, these five additional items to address will help you reach that full price offer when selling as well as help you reach maximum home enjoyment. For more tips and tricks, please check out our Facebook Page or the Blog on our website.
We'll see you around town!