What's the Best Strategy to Get a Great ROI on My Renovation?
Q: What’s the best strategy to get a great return on my investment on my renovation?
A: When it comes to remodeling, some changes that you make to your home are going to net you a big return on your investment. Sometimes this return comes in the form of an increase to the overall value of your property, while sometimes the return is more in the form of your enjoyment and the overall usefulness that your home has for you. Either way, there’s a definite positive side to your remodeling project that you’ll reap the rewards from for years to come.
If you’re considering remodeling your home, it’s important that you think about what you want to do before you start. This will help you avoid projects that just waste money or leave things worse off than they started. So how do you know if a project is going to be worthwhile? Here are a few suggestions that might help.
Improving the Look
One of the best remodeling projects that you can undertake with respect to average cost versus average increase in resale value is adding or replacing garage doors. Homeowners who undertake this sort of a project typically recoup around 94% of their cost in their home’s resale value - even when it’s just a change for cosmetic reasons. Replacing siding with manufactured stone veneer has a similar cost-to-resale-increase relationship, with around 92% of the cost being recouped. This says a lot for how big changes to the look of your home can positively affect your home’s resale value.
While not every remodeling project is going to make your home’s resale value skyrocket, in most cases you’ll recoup most of your money if you’re making improvements to the overall look of your home. Replacing siding, replacing old windows, or replacing your front door or entryway can all make your home look more like you want it to without causing you to lose a ton of cash value in the process. Just make sure that the project is well thought out before you dive in, since you want to make sure that your improvements match other details of your home.
Functionality Improvements
Another big thing to consider when thinking about remodeling is how your remodel will change the functionality of your home. A big example here is remodeling your kitchen; not only will you be able to change the look of your kitchen, but your remodel also gives you a chance to make some changes to how it functions as well. Adding or updating appliances, moving things around, and opening up that kitchen floor plan a bit can not only make the kitchen look better but can make it easier to use as well. The same goes for some other rooms in the home as well, where remodeling can create a big change in functionality.
Depending on the size and type of remodel you do for functionality changes, you can see a nice improvement in your home’s value as well. Going back to that kitchen remodel, minor functionality updates can get you around a 72% return on investment. Even more expensive major remodels can still get you around 57% of your money back in your home’s asking price. Bathroom remodels are similar, netting you 70 - 60% or more of your costs in home value.
(Article courtesy of: HomeKeepr.com)