If you are considering updating the living space on your home to get it ready for sale or just to make it nicer for your family, you may question where the investment would make the most sense? Before you get started on an update to your home, look at the projects that may net the highest return-on-investment (ROI) whether in energy savings (if you are staying) or an increase in resale value when you sell.
Home projects that have high return on investment:
- EXTERIOR: According to the 2017 Cost vs. Value Report from Remodeling Magazine, an indoor renovation in 2016 averaged a 63.5 % return, while curb appeal projects paid back an average of 74.9 percent. To take advantage of this higher ROI, look into outdoor improvements like swapping out your front door for a steel one or updating your home’s siding.
- INSULATION: Improving the efficiency of the attic with air sealing and fiberglass insulation continues to sit at the top of the high-value list, boasting an impressive 107.7 % ROI.
- MASTER BEDROOM: As push notifications and email updates blur the line between work and home, there’s a growing emphasis on creating serene, peaceful spaces. A master bedroom addition complete with a walk-in closet and spacious, well-appointed bathroom can bring comfort along with a respectable 64.8 % return.
Home improvement projects that usually have a lower return on investment:
Would you like to make a few changes regardless of the return? You’re not alone. Homeowners continue to invest in kitchen and bathroom projects even when the ROI is low. But keep this in mind: Overall, replacement projects pull in a larger return (74 %) than remodeling jobs (63.7 %)which often focus on personalizing the space, which may explain the popularity.
Looking to ride out rising mortgage rates by staying in your current place? Industry insiders predict that will be common, with many homeowners looking to renovation to spice things up.