When you’re making improvements to your home, you’re not just making your life better in the short term, you’re also making an investment in your future. Ideally, the increase in the value of your home will exceed the cost of the improvement. Unfortunately, it doesn’t always work that way, but if you seek relatively low-cost improvements that require little to no maintenance, they should, at least, distinguish your house from similar homes! And, ideally, they also improve the energy efficiency of your house.
Here are four home remodel projects that can improve the resale value of your home. They’re excellent uses for your home equity line of credit (HELOC) and you may be able to save money by doing all or part of them yourself. By the way, don’t forget to consult your tax adviser to determine if those improvements qualify you for tax deductions!
1.) Replace the front door
There’s an old adage in real estate that suggests the features get tours, but the front porch gets sales. People make decisions on home-buying all the time by starting with a gut reaction and finding reasons to support it later. Why not start your home remodeling project with the first thing you interact with on your house: the front door. Upgrading an old, poorly-fitting front door with a newer energy-efficient model is a cheap, quick project that can instantly improve your home’s efficiency and aesthetic appeal. Best of all, hanging a door can be done in an afternoon!
With an average price of just over $1,200, including labor, an energy-efficient front door has an ROI of 98%! It’s also a chance to be creative. A new front door can add a splash of color, and window placements can break up a monotonous front profile.
2.) Do a Minor Kitchen Remodel
Replacing major appliances and installing new flooring is a difficult, time-consuming, and expensive task. The national average for spending here is $57,000, and the ROI for major kitchen remodeling isn’t great, at only 68%. Minor kitchen upgrades like repainting cabinets, installing a new tile backsplash, and energy-efficient cook-tops, are comparatively inexpensive. Just like the front door, these changes are mostly aesthetic, but people perceive a more modern-looking kitchen as being a better fit than the “retro” look.
This is also a chance to customize a place where you spend a remarkable amount of time. Having a kitchen look just the way you like it can make it easier and more enjoyable to cook. This will encourage you to eat more meals in, and energy-efficient appliances can lower your electric bills for the life of the home.
3.) Install or Expand a Wooden deck
Outdoor spaces are the American dream. Where else can a family sit and enjoy a frosty lemonade on a hot summer day? Watch the kids play in the yard while tending the grill? Why, on a beautiful wooden deck, of course!
Wooden deck additions were unpopular for years, as consumers see them as luxuries. During a recession, remodeling dollars tend to focus on needs, like kitchen and bedroom updates. But now that the economy is improving, more people are looking at decks as valuable extensions of their living space. The average cost, based on a 16 foot by 20 foot wooden deck, is $10,000. The average return on investment is just over 80%. This makes for a great way to increase outdoor living space and add value to your home, without spending an arm and a leg.
4.) Convert an Attic Space into a Bedroom
For most houses, the attic is an afterthought. It’s a place where unused craft projects and abandoned hobbies go to die. Consider turning that dead space into living space with a remodeling project! Turning an existing attic space into a spare bedroom or office can really add value. Complete with its own bathroom, which can be done for a slightly steeper price, and you’ve really got a great addition!
Nationally, the average cost is just over $50,000. That includes constructing a room, extending utilities to it (if adding a bathroom space), and adjusting the exterior of the house to accommodate the new space. However, this remodel provides a 77% return on investment in resale value, with the potential for more! If you have adult children or relatives visiting from out of town, an attic room can also be a wonderful guest room. You could even rent it out for additional income!
So what do you think? Will you be tackling any home improvement projects over the long weekend? Comment below!! Need additional ideas or financing? Contact us!