Matt Weber
Home Improvement & Repairs magazine based in Birmingham, Alabama.
Find more at www.homeimprovementandrepairs.com.
Now that the weather is warming, we begin the season of home improvements. What should you focus on? It makes sense to begin with what is broken or needs repaired. Next, consider what areas should function better. Drafty windows, for example, contribute to higher energy bills.
As far as optional enhancements, if you plan to stick around the house for a long time then focus on whatever makes the home more comfortable, convenient and enjoyable. On the other hand, homeowners who are considering a move in the near future may want to focus on renovations that provide the most return on investment.
Return on Investment (ROI) refers to how much of the remodeling cost you’re likely to recoup when selling your home. Projects with high ROI generally improve functionality or enhance curb appeal, making your home more attractive to buyers.
In competitive real estate areas, modest renovations can boost a home’s sale price. Appearance certainly matters to potential buyers, and upgrades to curb appeal such as new siding and garage doors offer outsized value for relatively low cost.
In fact, garage door replacement is reported to provide the best bang for your buck when it comes to home renovations. Each year, various real estate and remodeling companies publish research on renovation ROIs, and garage door replacement seems to always reign supreme. According to Hippo Home Insurance, replacing your garage door could achieve the ROI of 193.9 percent. The report pegs the average cost of replacement at $4,513 and the average resale value at $8,751.
Second place in the ROI contest typically goes to replacement of an entry door if it’s made of steel, featuring an ROI of 188 percent. However, upgrading to a “grand entryway” (fiberglass) achieves the ROI of roughly 97 percent, because the door is more expensive.
Additional upgrades that achieve substantial ROI include stone veneer installation (153%), siding replacement (80-88%), and minor kitchen remodels (96%). In this case, “minor” refers to refacing cabinets, replacing countertops and upgrading appliances. (Stick to classic styles and neutral colors to appeal to future buyers.)
Deck additions recoup about 83 percent of the cost for wood decking and 68 percent for the pricier composite boards.
Further down the line, a midrange bathroom remodel will get about 74 percent ROI. New vinyl windows return 67 percent, whereas installing wood windows will return 63 percent. It’s important to note, however, that upgrading from leaky windows to new insulated units can achieve significant savings in utility costs, which can make the upfront cost more attractive for homeowners who plan to stay in the house and pay the bills.
If you’re remodeling your home with intent to sell it, consider the current market trends and local buyer preferences. If the budget or time is tight, just focus on the high-impact items.
You can also improve your ROI on certain projects by doing the work yourself. I am currently remodeling my third home and have personally saved thousands with this approach. However, I have a lot of tools and experience. If you’re considering doing the work yourself, be honest about the limitations of your skillset. You should also plan on spending at least twice the amount of time on any given project than you initially estimated. Certain tasks, such as painting or cabinet refacing, can be accomplished by first-timers, but when it comes to installing windows, doors or electrical work, I recommend that inexperienced homeowners hire a pro. You would not want to kill your ROI with mistakes or poor workmanship.