Whether you’ve purchased a fixer-upper or are thinking about selling your home in the near future, it’s important to determine which renovations or upgrades can add value to your property.
Not all home projects are equal when it comes to earning you a return on investment (ROI). By consulting a Real Estate Professional, they can help you determine cost-effective upgrades that will help the property sell faster and for more money.
That echoes findings from a report by Remodeling magazine, which lists upgrades in terms of their ROI. Four of the top six projects were exterior projects. Only the minor kitchen remodel — a relatively modest indoor project among those covered — rivaled the return of exterior projects on list.
Top 6 renovations to increase your home’s value
- Stone Veneer: 95.6% ROI
By adding manufactured stone to the lower third of a home’s front facade and extending it over the front entry for an estimated cost of $9,357, you could recoup $8,943 when you sell your home.
- Garage Door: 94.5% ROI
Replacing a garage door with an upscale model costs an estimated $3,695 and could earn you back $3,491.
- Minor Kitchen Remodel: 77.6% ROI
Installing new cabinet fronts and energy efficient appliances costs around $23,452 but adds $18,206 in value.
- Siding: 74.7% ROI
It will cost about $14,359 to replace siding, but you may recoup $10,731 by doing so.
- Windows: 72.3% ROI
By spending an estimated $17,641 on new windows, you may recoup $12,761.
- Wood Deck: 72.1% ROI
Adding a 16’ x 20’ wood deck costs about $14,360 and adds $10,355 in value.
While a typical home improvement project might return .60 -.75 on the dollar, some upgrades like putting in an in-ground swimming pool could return .50 or less – and might even turn off some buyers.
To understand which upgrades are most likely to provide a higher-than-normal ROI in your area, talk to a local real estate agent, contractor or home builder. These pros will know what buyers are looking for and which upgrades will help your house sell more quickly and for top dollar.
Source: My Home by Freddie Mac – Home Improvement Projects with the Best ROI, June 3, 2021
Financing Your Renovation
GMM offers cost-effective options for financing or refinancing home renovations, repairs or improvements. Contact us about the options available to you.
*This article is for general informational purposes only.