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Home Renovation to Boost Your Home’s Value This Year
Recently updated on February 7th, 2024 at 10:06 am
It’s predicted that 2024 will be a scorching year for the housing market. The demand for homes is expected to outpace supply, driving up costs. That means if you’re hoping to sell your home quickly, any repairs you make can have a huge influence on your home’s desirability and resale value. Making general home renovation upgrades can boost your home’s value, for sure. However, the question is, which ones provide the highest rate of return (ROI)? Here are 8 of the top remodeling projects that’ll boost your home’s value, according to Remodeling Magazine.
1. HVAC Conversion (103% ROI)
Converting a furnace that burns fossil fuels to an electric heat pump and installing new wall units and wiring comes in at number one on the list of recent home improvement projects. Not the most stylish upgrade, but it’s on-trend because of the growing demand for environmentally friendly and cost-effective heating, ventilation, & air conditioning (HVAC) systems (heat pumps replace traditional air conditioners and provide both heating and cooling). While the conversion will cost you a pretty penny (on average, homeowners with a 2,000-square-foot home can expect to spend $17,747), the return on investment is sure to impress you at well over 100%.
2. Replace Garage Door (103% ROI)
When it comes to recouping your costs, a garage door’s aesthetic appeal ranks high. This estimate considers the price of labor and materials to remove and dispose of two 16-by-7-foot garage doors and install two 4-section doors on heavy-duty galvanized steel tracks, with the assumption that the existing electric garage door opener will be kept and used. One of the few home renovation projects, this curb appeal booster could earn you a profit when you sell your property.
3. Stone Veneers (102% ROI)
Stone always has a sophisticated air about it. It is possible to significantly improve a home’s exterior and, once again, its curb appeal by switching out its vinyl siding for stone veneer, even if you only intend to do so on a small section of the property, the doorway, for example. An address block, 40 linear feet of corners, 36 linear feet of sills, two water-resistant barrier layers, corrosion-resistant lath, and fasteners are all included in the average cost estimate. This improvement not only raises the wow factor of your property, but it also pays for itself and then some.
4. New Front Door (101% ROI)
Remodeling says that exterior jobs usually have a better return than interior ones. The numbers never lie, as the ROI for replacing the front door with a steel one has jumped from 64 percent in 2022 to nearly 101 percent this year. This could be due to the double benefit of increased curb appeal and lower energy costs brought about by the tighter fit of these doors within door frames. Even though they sound like they belong in a bank vault or jail cell, steel doors (which are made of steel with a polyurethane foam insulation core), you can find steel doors that match any design or color scheme and even the windows.
5. Vinyl Siding (95% ROI)
Even a beautiful, well-maintained house will look rundown if its siding is old and peeling. Vinyl siding may provide a better return on investment while also being less expensive than fiber-cement. The average cost to replace siding on a 1,250-square-foot house is $16,348, and you can expect to recoup about 95% of that amount at resale.
6. Fiber-Cement Siding (89% ROI)
If you have an average-sized house, installing new fiber-cement siding over an area measuring 1,250 square feet would set you back $19,361, but you can anticipate recouping more than three-quarters of that investment when it comes to selling the property. This upgrade contains both 4/4 and 5/4 trim, which are fractions used to measure thickness.
7. Midrange Kitchen Remodel (86% ROI)
Having a sleek and well-equipped kitchen can make even the most mundane tasks, like making dinner or hosting a party, more pleasurable. Also, this is a major selling element for the property. The report highlights what a midrange 200-square-foot kitchen remodel with 30 linear feet of countertops and cabinets would cost. It includes painting the walls, refacing said cabinets, and replacing the countertops. If you intend to upgrade your appliances to energy-efficient appliances, the estimate will be different. Except for the cost of new appliances, most of the return on this investment will come from the aesthetic upgrades you make.
8. Vinyl Windows (69% ROI)
Some people say that windows are the “eyes” of the house. The return on investment (ROI) can change slightly depending on the frame material (wood or vinyl) you choose. If you replace your windows with low-E, simulated, divided-light vinyl ones with a custom-color outside finish, you may recuperate around two-thirds of the initial investment. (Low-E refers to a window’s low emissivity, making it more efficient.) To keep prices down, it’s best to replace only the exterior molding and retain and maintain the interior. The typical price tag for such a remodel, which includes 10 windows, is $20,091.
9. Solar Power Integration (150% ROI)
In a period where sustainability is gaining paramount significance, integrating solar power into your home could be the next big thing for maximizing return on investment. With the rising consciousness about eco-friendly living, solar power installations contribute to a greener environment and significantly enhance your home’s overall value. The initial investment may seem substantial, averaging around $25,000 for a standard residential setup, but the potential return on investment can soar up to an impressive 150%. Given the persistent rise in energy costs, homebuyers are increasingly choosing properties with solar panels, making it a wise and forward-thinking renovation option. Embrace the sun’s power, and watch your home’s value bask in the glow of sustainability.
Keep in mind that these are typical values for the entire country. Costs for labor and material, as well as the standard of service provided, can cause significant price differences between regions. We can’t forget that inflation is an ongoing problem, which is another factor that impacts the overall cost of any project.
That said, the correct home renovation project can still boost the resale value of your home over time. Appraisers factor in home renovation when determining a property’s worth for purposes like refinancing. You’ll benefit more from taking out a loan or line of credit based on your home’s equity because you can increase your house’s worth because you’ll have greater equity and a lower loan-to-value ratio. It’s possible you can get out of paying for PMI (private mortgage insurance) sooner than you thought.
Also, if you plan on flipping your property in the near future, it would benefit you to make sure that it is spotless, updated, and move-in ready.
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