Home Renovations with the Best ROI
Do you have some home renovation projects on your list of 2020 goals? Before you get to buying the materials and contracting a team to get to work, make sure you’ve weighed the cost of the renovation to the value that update will add to your home’s market value. We’ve put together a list of renovations that offer the best ROI for their buck and offer some advice on other factors to consider before you get started.
TIMING IS EVERYTHING
How soon you plan on selling your home is another important factor to consider. If you plan to sell your home in six months or less, a major kitchen remodel or a master suite addition may not be the best idea since you won’t be able to enjoy these updates for long and the ROI may not justify the cost of the investment. It’s best to stick to renovations with a smaller budget, updates that improve curb appeal, and vital repairs to plumbing and electric if you plan to sell soon.
It is vital that you talk to an experienced real estate agent that is familiar with your local housing market. An experienced agent can help you understand what homes in your area are selling for and can help guide you when it comes to renovations. They may even suggest that you get a home inspection or that you declutter your home and get a storage unit before listing your home. Every market is different when it comes to ROI, so be sure to speak to an experienced agent before choosing a project.
Here’s our list of the best home renovations for your home!
- Fresh Paint
A fresh coat of paint is the easiest and most cost-effective update to make to your home, especially if you plan to sell soon. Warm, neutral colors are your best bet since they brighten up your space and make it easy for buyers to imagine their own things in the room. Be sure to paint trim and ceilings and make sure you fill and smooth holes out, too!
- New Front Door
A new front door goes a long way when it comes to curb appeal. If your home’s door is looking worn or is outdated, consider updating to a steel entry door with a color that suits your exterior. A bold color is becoming more and more common in homes and is great for curb appeal.
- Attic Conversion
An attic conversion adds usable square footage to your home without adding to your property tax costs, like an addition would. This extra space could be a new master bedroom suite, office, or open living area for your family to enjoy. If your attic space is considerable, it can even be something you rent out for rental income, which would come with some additional property tax costs, but the income long-term should recoup these additional costs. Be sure to work with a certified architect and contractor to ensure all updates meet coding regulations.
- Wood Deck
Decks are always a plus for potential home buyers and the ROI tends to be on the high end, even here in Chicago where snow days cover up their use. Most Chicago homes and apartments have at least a small back deck, so if your home doesn’t have one, it may be something you want to get down the line to make the home easier to sell and to add a nice outdoor space for your family to enjoy the good Chicago weather days.
- Window Replacement
Windows are such an underrated part of a home. They let in the sun, keep out the cold, and add to the curb appeal to your home. Outdated windows can easily make your home look less appealing and definitely less efficient when it comes to heating and air conditioning. If your home needs new windows, make it a priority to update them. This long-term investment will surely have a great return and you will see the savings in your gas and electricity bills right away.
- Simple Kitchen Remodel
Kitchen remodels can be a huge undertaking both budget-wise and time-wise. Planning a kitchen remodel is important to ensure your family is ready to function without its kitchen and to make sure your budget is ready for the costs. A kitchen remodel’s cost can vary greatly, especially depending on your personal taste. If you are selling soon, a simple kitchen remodel is your best bet. Update the necessities, like counters, appliances, and paint. If your cabinets are in good shape, you may just need a coat of paint on them. Keep in mind that design preferences vary greatly from person to person, so if you plan to sell soon, it’s best to stick to neutral colors to make it easier for others to envision themselves in the space.
Investing in your home seems like a no-brainer, but keeping in mind your long-term plans, timeline for sale, and local housing market trends are vital pieces to ensuring your updates don’t end up costing more than they’re worth. Be sure to talk to one of our experienced agents if you plan on updating your home for a near-future sale and make sure your investment is a good one!