What's The ROI of Your Home Improvement Project? The Hollywood Home

December 14th, 2018 by thehollywoodhome

What’s The ROI of Your Home Improvement Project?

Every home needs improvements from time to time, including new builds. Indeed, your home is designed to be lived in. Therefore, the constant use of features, passage of feet, and reliance on appliances and other systems lead to a natural effect of wear and tear.

The main difference between a quick patch-up job and a real home improvement project lies in the way you’re planning to use the property. For instance, if you have no intention of moving out, you might be satisfied with an effortless fix that keeps things together for the time being. On the other hand, if you want to move out and sell the property, you’ll start thinking of home improvements in terms of added value. Each modification and each project has to be carefully weighed to figure out whether it is financially worth the expense. Can it increase the value of your home? If so, you should embrace the prospect of a positive return when you sell. But if it doesn’t change the price tag, you might need to rethink your strategy.

Warm and cozy home: High return, relatively low cost

Energy consumption rates are a major selling point in the real estate market. A house that stays warm without breaking the bank is the Holy Grail of all properties. Consequently, future homeowners pay close attention to structural elements, such as the roof or even the insulation. Getting your roof repaired comes at a relatively low-cost, as more often than not you’ll need only to have portions of it redone. You will notice an immediate difference in heat loss, which will balance the costs out and keep you cozy. Insulation, on the other hand, can be the job of a DIY weekend. You can also add heating maintenance and repairs, such as a typical Rheem AC repair job every few years. Altogether, energy-focused improvements have a high ROI in the sense that they boost the home value.

Beautiful curb appeal: average return

Realtors say that the curb appeal of your property can make or break the deal. In reality, a house that looks attractive from the outside is likely to attract more buyers. But it doesn’t guarantee the purchase! Consequently, you need to keep your efforts to essential elements without overspending. A clean facade and a staged front – with seasonal decorations – can help to maximize the value of your home. But your ROI is likely to be average or just enough to recover your costs.

My fancy bathroom/kitchen: Guaranteed sale but diminished return

The bathroom and the kitchen are the two main areas that show the most signs of wear and tear. Consequently, it can seem like a good idea to renovate one of the other before selling. However, comparatively speaking a brand new kitchen – or bathroom — add less than a third of its total cost to the value of your home. What this means is that your $15,000 new kitchen will add less than $5,000 to the selling price of the property. It encourages buyers but doesn’t generate a positive return.

Which home improvement is right for you depends entirely on the return you’ll get from it. If you intend to live in the property another few years before selling, a new kitchen is a brilliant investment. But if you want to sell soon, you need to focus on budget-friendly returns.

*This is a collaborative post.