Home renovations can be a great way to add value to a home, and, when you’re ready to sell your home, adding the right renovations can yield a higher return on your investment – otherwise known as ROI. When deciding which renovations to do, it’s important to consider both the cost of the renovation and how much you can expect your home’s value to increase. Keeping these factors in mind, here are some of the top ten home improvements for maximum ROI.
From new flooring to upgrading to energy-efficent appliances, there are some improvements that stand out among the rest when it comes to their ROI potential. In most cases, you can expect to make back some of the money you’ve invested in your home renovations, and, in some cases, you can recoup the entire cost – and more – when it comes time to sell your home.
So if you’re looking to make some improvements that also make good investment sense, here’s a list of the top home improvement projects that will yield the highest ROI.
1. Upgrade Your Lighting
Upgrading the lighting throughout your home is one of the most cost-effective ways to boost the overall feel and look of your home. From replacing light fixtures to adding new ceiling lights, replacing your lighting choices is an easy way to add value to your home. Plus, upgrading to energy-efficent lighting can lower your electricity bills and help the environment.
Lighting is an easy and often overlooked home renovation that can add a new layer of sophistication to the look of your home, and you can typically expect to recoup up to 80% of the money you put into it.
2. Install Energy-Efficient Windows
Installing energy-efficient windows is an effective way to add both aesthetic and practical value to your home. New energy-efficient windows can reduce both the amount of heat lost or gained, which can be a huge money-saver on your energy bills. Plus, new windows also make your home look and feel like new.
When it comes to ROI, upgrading your windows to energy-efficient models is a win-win situation. According to data from Remodeling Magazine, in most regions of the U.S., you can expect to recoup up to 78% of the cost of the windows upon selling your home.
When selecting a replacement window, consider the cost of the window compared to the savings you can expect. For example, if your home will benefit from a double-pane window, it will likely be worth the added cost.
3. Upgrade Your Front Door
Your front door is one of the first things people notice when arriving at your home, and replacing your old door with a modern one can instantly make your home look brand new. When selecting the new door, look for weather-resistant materials that are likely to last for years. Additionally, the color that you choose for the door will depend largely on the color of your existing facade.
While a new front door may not seem like a big deal, studies show that you can expect to recoup up to 98% of the cost when you sell your home.
4. Upgrade Your Kitchen
- Install new countertops, such as granite or quartz
- Install new kitchen appliances (energy-efficent models)
- Install new kitchen cabinets (modern and high-quality)
- Install a tile or stone backsplash
- Replace flooring with modern tile or hardwood floors
Investing in your kitchen is one of the biggest bangs for your buck when it comes to home renovations. Kitchens are one of the most-used rooms in the house, and modernizing yours can yield a high return when it comes time to sell your home.
According to Remodeling Magazine, kitchen renovations yield an ROI of 70%-80%, depending on the region your home is located in.
Conclusion
When it comes to home improvements that are likely to yield a high return on investment, there are some renovations that stand out. From upgrading to energy-efficient windows to remodeling your kitchen, improvements to your home can result in both a higher home value and lower energy bills. So consider these improvements to bring new life and value to your home.