Rates of Return: On Your Home Improvement Projects

Home Improvement Rates of Return

When you are living in your home, there are many reasons you will want to make improvements. You may want to replace items that are outdated or damaged. You may want to improve your living experience and the aesthetic of your home or you may want to increase your home’s value.

If you are focused on boosting your home’s value, there are some improvements that will pay off more than others. This article will take a look at some of the improvements that will produce the highest rates of return.

Kitchen and Bathrooms

When it comes to improvements that make your home more sellable, kitchens and bathrooms are the way to go. It’s pretty easy to tell if money has been spent for improvements in a kitchen or bathroom so updated renovations will be obvious to potential buyers. What’s more, repairing kitchens and bathrooms are the places where people spend a good amount of time.

Statistics show that kitchen and bathroom improvements can recoup 150% of what homeowners spent.

Home Improvement

Some homeowners may be so invested in making improvements to their home, they neglect the basics. For instance, there have been homeowners who are focused on remodeling kitchens when their roof needs to be replaced or there is water in the basement.

Neglecting necessary remodels can put homeowners in a position where it is difficult for them to sell their homes at all. On the other hand, investing in a new roof can produce varying profits. Homeowners have recouped anywhere from 7% to 96% of their expenses upon selling.

Curb Appeal

Curb appeal also factors heavily into the whether or not a homeowner is able to make a sale. If potential buyers see a home that doesn’t look good from the outside, they may not even walk inside. A patio and new siding are both improvements that can rank highly when considering the cost to value ratio.

More Space

Homeowners can also update their homes to make them more spacious by adding rooms or even doubling the size of their homes. According to a 2005 study conducted by the National Association of Realtors, every 1000 square feet you add to a home will increase its value by 30%.

When considering what renovations to make when adding space, bathrooms will have the biggest payoff with owners getting returns that average 86%.

Those who add bedrooms, sunrooms and family rooms can expect to see returns of 70- 80%. However, homeowners should be careful not to add on so much space that they price themselves out of their own neighborhoods.

When you own a home, there are several things you can do to improve your living experience while boosting the value of your property.