Is Your Home Remodel a Good Investment?
When you consider your investment opportunities, do you think about your house, too? Many homeowners take on remodeling projects with the goal of increasing the value of their property.
Does every big project necessarily yield an ROI, however? What about smaller upgrades?
Whether you plan to sell soon or in a few years, here’s what to think about if your goal is to boost the resale value of your house.
Fresh landscaping can help any home make a good first impression. Check local nurseries for the best deals on fertilizer, weed control, perennial plants and shrubs. This DIY project should only cost a few hundred dollars.
Another manageable project is interior painting. Budget $100 to $300 per room for paint and supplies and choose a color that’s likely to appeal to buyers. To save time and frustration, splurge on high-quality paint that only requires one or two coats.
Medium and Large Projects
According to many experts, replacing your entry and garage doors can bring a return of over 90 percent of the installation cost when you sell. A steel front door painted black or charcoal is a good bet, while an upscale, four-section, well-insulated steel garage door with windows will also stand out to prospective buyers.
A standard kitchen remodel might run $20,000 to replace cabinet doors, hardware and drawer fronts; buy new, matching, energy-efficient appliances; replace the sink, faucet, countertop and floors; and freshen up the walls with paint and a tile backsplash. Many homeowners are able to eventually recoup about 80 percent of these costs.
When planning renovations as investments, consider the value of similar homes nearby as well as extra costs (like hiring a contractor). Improvements beyond the norm likely won’t pay off.
Have questions? Want to discuss your financial goals? Reach out anytime.