Home renovations are expensive and take a lot of time most of the time; that is why many people try to steer away from them.
However, if you do it correctly, home renovations could pay you back in the future in terms of their value because your house will look modern and solid.
According to Ruby home, A home remodeling project’s average return on investment is 56%, but some projects generate double-digit returns.
So in this article, we will talk about some home renovations that will be worth the time and the money that will pay you back in the future.
- By upgrading your kitchen to a modern one, you can greatly increase your home’s value.
- You can change the lighting of your house without spending much and increase the value of your home to a good extent with it.
- Changing the painting can also upgrade your house without much investment.
Home Renovations That Will Pay You Back
Here are some home renovation that will pay you back:
1. Kitchen Remodelling
The very first thing that appraises the value of a home is the kitchen and the design of the kitchen.
If you see a modern and working kitchen in a home or you remodel an old kitchen to a modern one, you can increase the value of a home by a lot, generally double or triple the amount you spend on the entire remodeling work on the kitchen.
Remodeling the kitchen could involve updating the appliances and changing the kitchen’s floors or cabinets.
What is important is to change everything that is at least ten decades old because many real estate agents say that they must be modern-looking to increase the value during the sale of the house.
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2. Lightning Improvements
Good lighting does not just help you to see around the house better; with good lighting, you can also market the apartment in a better way if you ever want to sell your house.
Having good lighting around the house helps you to make the house look better.
The good part about lightning improvements around the house is that you can do most of the work yourself, and changing the lightning does not require a lot of capital like other renovations.
Even though it depends on what kind of lightning improvement you want to make, it will probably be a lot cheaper than most of the renovations but will increase the value of your house by an exceptional amount.
3. Updated Or New Flooring
A good, modern, and updated hardwood floor could make any home look way more expensive than it is because it will look modern.
You can make many different flooring renovations, and updating the hardwood floors is just one of them.
You can also do nice carpeting around the house, which would increase the total value of the apartment depending on the type of carpet you decide to put.
If the inside and the outside of the apartment do not look as sleek as a new home, the value will decrease significantly.
Consider applying a modern color and changing the painting once in a while to make sure that the painting looks new and modern.
The good part about painting is that it is a quick but extremely effective renovation that does not cost a lot of money and time.
You could do it only in the interior, as well, if the exterior does not allow for constant painting from time to time.
5. Replace Garage Door
According to the Remodeling Magazine survey, replacing the garage door with a new one can give you 90% of its cost when selling your house.
The average cost of garage door replacement is $4,041, and the average resale value is $3,769, so as you can see, you get back almost 90% of your investment back.
And the best part is this just makes it easier to sell your home.
Replacing worn-out or damaged windows is a must if you want to increase the chances of selling your house.
Wood and Vinyl both have comparable recoup rates. However, wood has a slightly higher average cost and costs one percent less recoup rate.
Adding new sidings will not make your house look better, but it will reduce furniture maintenance issues in the future.
You can buy modern vinyl siding, which is fade-resistant and lasts for ten years.
On the other hand, fiber cement siding is slightly more expensive but offers a higher quality look that most buyers appreciate.
Changing bathroom tiles, wash basins, etc., will cost you a lot, and it does not guarantee that the buyer would like it or not.
So instead of fixing that, you can get any showerheads, taps, fixtures, and such small things fixed.
This will cost you less and will still help you in transforming the space.
9. Roof Replacement
A home buyer always looks at the roof of the house, and it is an important part of the house that can influence their buying decision.
So make sure you get any leaks or repairs done. Fixing the roof can turn out to be a good investment.
10. Universal Design
Universal design or aging-in-place is gaining a lot of popularity, especially among baby boomers who would like to continue living in the same house rather than move into some other place.
Universal design also includes functions such as wheelchair mobility, grab bars at different places, and more.
Having a universal design can be a great investment that will pay you back.
Factors That Impact The Resale Value of a Home
Here are some factors that impact the resale value of a home:
In which part of the country you live in affects the resale value of a home greatly. For example, labor is usually cheaper in the south as compared to the north. Similarly, fire placing in the north sells better than in the south. So such small details can largely affect the resale value of your home.
You cannot keep the resale value of your home more than the value of the other homes in your locality. The cost of your home and the improvements you make in your home should be at par with your neighborhood.
3. Real estate Market
The present state of the real estate market plays an important role in influencing the resale value of your house. If the real estate market trends are good, then the buyer might agree to pay more for the improvements you have made and vice versa.
7 Home Renovation Mistakes to Avoid
To conclude, home renovations are extremely important because every change you make in your home will affect the value of your house.
You can consider home renovations as some investment for the future when or if you want to sell your home.
Remodeling the kitchen, updating the flooring, getting better lighting, and painting the interior and exterior from time to time are just one of the few renovations you can consider doing.
What type of home improvement gives the best returns?
Here’s how much different types of home improvement can give you different returns:
- Minor Bathroom Remodel: Average return of 102%
- Attic Bedroom Conversion: Average return of 93.5%
- Minor Kitchen Remodel: Average return of 98.5%
- Landscaping: Average return of 100%
- Major Bathroom Remodel: Average return of 93.2%
Are home improvements tax deductable?
Home improvements are not tax deductible in general except for energy-efficient improvements, capital improvements, and medical care related improvements.
What home renovations are not worth adding?
Adding pools, water tubs, hot tubs, etc., might disinterest a buyer as all these things call for a high cost of maintenance.
Amit Gupta is the founder of National Planning Cycles, a company that helps startups, individuals, and small businesses with their financial planning. He has a vast amount of experience in the finance sector, having managed Google Play accounts for some of the world’s most successful unicorns. Amit is an expert in his field, and he uses his knowledge to help others achieve their individual goals.