Return On Investment: It’s More Than Just Numbers
Home improvement projects beautify your home and create a more pleasant space for your family to live, and some projects also offer a great return on investment (ROI). If you plan to sell your home in the next few years, it’s a good idea to choose remodeling projects that will help you when you put your house on the market. In addition, projects with great ROI help improve the experience your family has while living in the home.
Measuring the ROI of a Home Remodeling Project
The idea of return-on-investment might bring to mind thoughts on budget and home value, but the overall concept requires a look at more than just the numbers. While large projects like remodeling the kitchen or the entire bathroom might require a close look at finances, the decision to undertake many other projects will often depend on several factors.
When considering a remodeling project, ask yourself the following questions:
- Will the project add value to the home during a future sale?
- Is there an expected increase in energy-efficiency?
- Will the project offer a low-maintenance result?
- Are quality materials available at a particular budget level?
If you envision tackling a few different projects, the answers to these questions can help you choose your first project.
Doors: Great ROI & Functionality
If you’re looking for easy projects that don’t require that you take a second mortgage out on your home, door replacement is one of the best projects to consider. It’s not difficult to find a new door that will match your old door frame, so your contractor can often install your new door in just a few hours.
In addition, real estate agents often recommend that the homeowners they work with invest in new doors before putting a home on the market. The front door is one of the most noticeable features from the street and helps make a good first impression for the average buyer.
According to House Logic:
“Your faithful front door works tirelessly — day in and day out — to usher in you and your guests, and to seal your house up tight. But when Old Faithful gets tired and worn out, don’t hesitate to call in a replacement. Year in and year out, replacing your old front door with a new steel door is a project that kicks up curb appeal and yields the best payback.”
As a homeowner today, you have a quite sizeable number of doors from which to choose from sturdy fiberglass to trendy steel. You can choose a traditional wood door that’s identical to your old door, you can get a new door that looks the same but is made of a different material, or you can go in an entirely different direction with a new door style.
Return On Investment is More than Just Cost
You’ve probably read articles that provide various figures about the value of certain home renovation projects, but when it comes to the true value of those projects, one of the most important factors comes from your future buyer’s impression of your home.
U.S. News describes this concept well:
“If you have a dated kitchen … and a buyer walks into that kitchen, they’re going to think that in order to redo that kitchen, they’re going to have to spend $40,000 or $50,000… But the average cost of a minor kitchen remodel – new cabinet doors, appliances, countertops, sink, faucet, paint and hardware – was $18,856 nationwide, according to the Cost vs. Value report. Savvy shoppers can do it for less than the buyer assumes.”
The moral of the story? Your home renovation project doesn’t have to be a complete replacement of a room or feature in your home. Sometimes, a comprehensive “facelift” can have the same effect as a full remodel that guts the space entirely.
Other Home Improvements to Think About
Exterior doors and garage doors usually have the best ROI if you’re just thinking about pure numbers, but there are a variety of other projects you may undertake to improve the appearance and value of your home.
Some of those projects include:
- Building a new deck or patio
- Adding a bedroom (usually through converting an attic)
- Upgrading or renovating the kitchen
- Replacing the siding on the exterior
Even if you’re not looking at putting your home on the market in the next few years, home improvements can have a dramatic impact on the experience you have living in your house.
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