Making improvements to your home can really pay off when you sell your home. Home improvements are the best way to increase your home’s asking and selling price, but they aren’t all equal when it comes to the percentage of return.
The experts at EC Roofing can help you identify the best home improvements to increase your ROI so you can get the best deal possible when selling your home. Why not take advantage of their expertise by calling 410.237.8046 for a complimentary consultation.
What Is ROI?
ROI, if you don’t already know, stands for return on investment. It is the standard way of measuring how much money you will make from a given home improvement project compared to the amount of money you spent. For example, if an improvement project costs $5,000 and has a 100% ROI, it will add $5,000 to the overall value of your home.
It is important to remember that just because an ROI is less than 100% doesn’t mean it is not worth it. While it might not add literal value to your home, it can most certainly add perceived value. Perceived value is the value placed on a specific home improvement by the purchaser. This means that a home improvement with a low ROI can still increase the final selling price of your home and the speed at which it sells.
Best Home Improvements to Increase Your ROI
Bigger isn’t always better when it comes to high ROI home improvements. You want to find a balance between the initial cost and calculatable value. Just because you spend more money on a type of home improvement doesn’t necessarily mean your ROI will increase. So without further ado, let’s get right into it.
Exterior Home Improvements ROI
The outside of your home is the first thing that a potential buyer will see, so you want to make sure it looks good to make an impactful impression on them. Things like landscaping, siding, windows, and doors all have pretty good returns.
Since the beginning of modern times, neighbors have been silently competing against one another for the best lawn on the block. Use this to your advantage by presenting the potential buyer with a perfectly manicured and professionally landscaped property. The average ROI on landscaping is a whopping 100%, meaning you will recoup all of, if not more, money than you put into it.
New siding makes your home look beautiful and has the potential to make that selling price equally so. Of course, different siding materials have separate returns, but on average, you can expect siding installation to return around 80% of the original investment cost.
Replacement windows come with a respectable return of around 85% but tend to have a higher impact on perceived value. Window replacement can be pretty costly, so when a home comes equipped with new energy-efficient windows, the buyer’s perceived value is automatically going to skyrocket.
After installing a high-quality and secure front door, you can expect to see around 90% of your investment back when you decide to sell.
Interior Home Improvements ROI
The inside of the home is equal in importance to the outside. So such things as bathroom and kitchen remodels are massive selling points to potential buyers.
Kitchens are one of the most popular rooms in any home, and so you can count on buyers to heavily weigh the state of yours into their final bid. Kitchen improvements can become extremely costly, so you want to make sure that you don’t overdo it. With the right amount of work, you can expect a minor kitchen remodel to have an average ROI of just under 100%. That said, kitchens have a remarkable impact on the buyer’s perceived value.
As with kitchen remodels, bathroom remodels can be a money pit, so you want to make sure any improvements you make aren’t overdoing it. A minor bathroom improvement has an average ROI of just over 100%, making it one of the few home improvement projects that profit.
The roof is the first thing people look at when viewing your home. Roof replacement can ensure that your roof is structurally sound and appealing to the eye. Having a beautiful, functional roof with a good warranty is likely to increase the selling price of your home in Baltimore County.