How to Increase Home Value: 7 Best Projects
With the housing market drawing so much attention these days, you might be thinking of giving your home a polish. Renovation projects can of course be expensive. On average, homeowners spend about $ 15,000, and a kitchen or bathroom remodel can cost significantly more. If you are curious about how to add value to your home, keep in mind that certain projects will pay off better than others. Your return on investment can depend on the type of changes made, your location, and competition in the housing market. Here’s what you need to know.
The central theses
- Homeowners spend an average of $ 15,000 on renovation projects.
- Very few projects pay back 100% of their costs when you sell the home.
- However, some renovations can make your home more attractive to buyers and help it sell faster.
- Renovations can also make your home more energy efficient, save money and simply live more comfortably.
How to add value to your home for $ 15,000 or less
If you’re making a relatively modest investment in renovations and at the same time want to get some of that money back through increasing the value of your home, here are seven projects to consider. The first four are based on the new “2021 Cost vs. Value Report” by Remodeling magazine, the last three on the “2019 Remodeling Impact Report” by the National Association of Realtors (NAR):
1. Replace your garage door
One of the most effective ways to improve the attractiveness of your home is to replace your existing garage door with a modern steel door. According to Remodeling magazine’s “2021 Cost vs. Value Report,” the new garage door will cost an average of $ 3,907 and amortize 94% of its value or $ 3,662.
2. Add a stone veneer
If the front of your house has old brickwork or nondescript siding, consider covering some of it with engineered stone veneer. It will make the house look more stately and you will likely get 92% of the cost back if you sell the house. A manufactured stone veneer costs an average of $ 10,386.
3. Update the front door
If you have an older front door, it can make your house look drab and it may not be as safe or energy efficient as today’s models. A new steel door would cost around $ 2,080, but you would get around $ 1,350, or 65%, back at the time of sale.
4. Create a grand entrance
A more ambitious (and costly) front door project is to widen the entrance while adding new fiberglass cladding and lighting. The average cost to install a so-called grand entrance is $ 10,044, and you get 61% off your investment.
5. Lay a new wooden floor
If your home has carpets or older tiles, a new hardwood floor will add to the appeal of the interior. The benefits can be substantial; Homes with new hardwood floors are easier to sell, and you can actually make money from this renovation unlike virtually any other project. The average cost of a new flooring is $ 4,700, according to the NAR’s 2019 Remodeling Impact Report, while the estimated cost was $ 5,000, or 106% of the investment.
6. Update or replace the HVAC system
Upgrading or replacing your heating, ventilation, and air conditioning (HVAC) system can add both saleability and value to your home. The typical cost of an HVAC replacement is $ 8,200, and the estimated cost is about 85% of that, or $ 7,000.
7. Improve your insulation
Insulating your home is important for your comfort and budget. Upgrading your home can improve the energy efficiency of your home while helping to keep unwanted noise out of traffic or neighbors. The average cost of upgrading insulation is $ 2,400, and you will likely get 83% of the cost, or $ 2,000, back.
The bottom line
Renovating your home can improve the quality of life and increase your chances of selling quickly for your asking price or more that day. However, some projects offer a better return on investment than others. If you have any plans to put your home up for sale anytime soon, consider consulting a knowledgeable local real estate agent to find out which projects (if any) would make a difference to potential buyers.