Home Renovations and Projects with the Greatest ROIDecember 12, 2016
Your home is a precious investment — it is the protective roof over your family’s head and the place where many memories are made. Unfortunately, it is also an expensive investment — one that will likely continue to require maintenance and more funds as time goes on. While this is a typical concern related to homeownership, there are specific strategies you can do that are more likely to help you recoup a decent percentage of your funds when it comes time to sell.
Whether you plan to move in a few years or a few months (or there is no immediate plan to move at all), certain purchases, maintenances projects, and renovations have a greater return on investment (ROI), thereby helping you recoup more of your hard-earned money when you sell your home. To figure out which projects provide the greatest “bang for your home renovation buck,” Remodeling magazine surveyed various remodeling consultants to estimate the average cost of 27 different home improvement projects. They then asked real estate agents from across the country to estimate the expected resale value of those remodeling projects and renovations. The resulting comparisons help show consumers and homeowners just how much they would likely get back — for each project — in the sale of their home.
The general home improvement consensus is that lower-cost projects generally reap larger returns. In fact, four of the top five projects offering the greatest potential for return on investment cost less than $5,000! Want to see the rest of the list, including the home remodeling projects with the least return on investment? Check out Remodeling magazine’s 2016 Cost vs. Value Report.
Home renovations and maintenance projects with great returns on investment — if not value-boosting potential — can help maximize your ability to sell your home at the price you want and need to re-absorb your costs. Keep in mind that how soon you sell after making improvements, as well as the quality of the project itself, do factor in. Finally, always consider the following when selling your home: the overall value of your home, your location, the value of the homes near you, and the health of the economic market. Do that and follow the above list, and you will be well on your way to [hopefully] selling your home for your asking price — and maybe a little extra.