Last updated on February 2nd, 2024 at 06:47 pm
When it comes to enhancing the value of your real estate investment, smart house remodeling decisions can significantly impact your profit margins. Whether you aim to sell or rent out your properties, selecting renovations that boost home value is a crucial investment strategy.
Understanding the current condition of your property, its Return on Investment (ROI), and its location is essential for practical home improvements. Home flipping enthusiasts often inquire about ROI, highlighting its importance in the renovation decision-making process. Remember, not all expensive renovations guarantee a high resale profit; sometimes, the costs outweigh the benefits.
To ensure you’re making wise investments without straining your finances, here’s a list of the most value-adding home renovations, backed by real estate statistics:
- Garage door fixing
- Architectural stone veneer
- Minor upgrade for your kitchen
- Siding renovation
- Vinyl Window Replacement
Let’s check what renovations increase home value the most.
1. Garage Door (93% Recouped)
A garage door upgrade is not just an enhancement; it’s an investment. Improving your garage door can dramatically boost your appeal and ROI if you plan to sell your property.
Take a look at your current garage. An outdated 16×7 foot door can detrimentally affect your home’s curb appeal. Replacing it with a new four-section door and tracks is an intelligent move, potentially adding substantial value to your home. You could retain the existing motorized opener for added efficiency.
Quality is key here. Opting for a high-tensile-strength steel door ensures durability and longevity. This means that even if it takes a while to sell your property, your garage will continue to impress potential buyers with minimal maintenance.
Many homeowners were surprised to see garage door improvements topping the Cost vs Resale reports. Contrary to common belief, this isn’t a minor fix. A brand-new garage door can swiftly maximize your return on investment, proving its worth far beyond a mere aesthetic upgrade.
2. Architectural Stone Veneer (92% Recouped)
Here comes another bonus point for the house’s aesthetic appeal. Stone veneers with architectural beauty can please any buyer and create a perfect coating.
Your potential buyers will never value old vinyl sidings for the outer facade. Replacing them with manufactured stone veneers boosts the chance of selling your house.
Before diving into the other to-dos, finish the garage door and stone veneers. They are the only remodeling projects that guarantee more than 90% recouping.
3. Kitchen Minor Upgrade (70% Recouped)
We often encounter clients who have over-invested in their kitchen renovations at Diamond Contractors. Expensive cabinets and luxurious countertops have yet to yield the expected buying offers, leading to budgetary strains. Our approach? We recommend strategic, minor kitchen fixes that surprisingly turn things around.
Consider the numbers: The average kitchen remodel costs $28,279, with an average resale value of $20,125. That’s a recovery rate of 70%, significantly higher than the previous average of 53-57%.
Here’s a tip: If you’re remodeling your kitchen, consider investing in new products. This reduces future maintenance costs and appeals to potential buyers with high standards. However, if you’re planning to rent out your property, there’s no need for extravagant upgrades. Renters typically don’t demand high-end appliances for their daily cooking needs.
A practical example is swapping costly countertop stones for high-quality laminate. This choice cuts costs while maintaining aesthetic appeal. Remember, minor kitchen updates often yield a more profitable return on investment than significant overhauls.
4. Siding (68.3% recouped)
Say goodbye to your tumbledown siding with a new fiber-cement one (factory primed and painted). Here are signs that you must replace this coating:
- Cracks and hail decaying (make moisture come into your house)
- Been used for +10 years
- Frequent visits for maintenance
Siding is vital in curb appeal; you don’t want to show your potential buyers a shabby face. The average cost for the siding renovation is $22,093, and the average resale is $15,090 (68.3% cost recovery).
If you pick vinyl material for the remodeling, the recovery deacreases slightly to 67.2%.
Before Diamond Contractors come and do your siding upgrade, remember to clean up the outer area, keep your pet and children away from the construction, and shut down your house’s exterior power.
5. Vinyl Window (67.5% Recouped)
Think about a new face for the window before your potential buyers can see cracks and tiny gray spots (due to humid weather).
Because this part is a big-ticket spending, plan carefully and determine how much you can raise your asking price or rent from the window replacement.
The average value is $13,822, with the average cost revolving around $20,482
If you can’t sell your house for a while, quality windows will save your budget by cutting the energy bill by 7 to 15%.
Finding a timeline and balancing the budget for your next renovation plan is time-consuming, and you always have other projects and deals to handle.
A professional contractor is the wisest solution for all remodeling obstacles. That’s why we’re proud to bring you excellence and meticulous attention to detail.
Now Is the Perfect Time to Boost Your Resale Profit
Diamond Contractors guarantee top-notch construction for your renovation plan with experienced staff.
Clients always visit us for the second time because they have finalized scads of buying deals after our counsels and constructions.
We’re proud to be a national contractor and finish remodeling projects in Kansas City to clients’ satisfaction.
Skyrocket your resale profit now with this free quote.