Wise renovation
HOME IMPROVEMENTS THAT INCREASE HOME VALUE
W hen granite countertops or shiny stainless-steel appliances beckon homeowners from the display areas of home-improvement stores, it’s tempting to gear remodeling thoughts toward the items that will add flair and decorative appeal to a home. Even though most improvements add some measure of value, deciding which are the best investments can be difficult.
A homeowner’s return on investment, often referred to as ROI, varies depending on the project.
Frequently, the projects that seem like the best investments don’t bring the greatest rate of return, while those that seem like smaller projects can bring substantial returns. Real estate professionals routinely weigh in with their expert advice, and homeowners can couple that advice with Remodeling magazine’s annual Cost vs. Value Index to reap the greatest financial impact from their renovations.
The following are some of the projects that garnered the greatest ROI in 2015.
OPEN THE DOOR TO IMPROVEMENT
Region by region across the United States, installation of a new steel door on the front of a home can have a large impact on the resale value of a property. The ROI ranges from 123 percent at the highest to 86 percent at the lowest — which is still a considerable investment return for such a simple project. Match the door’s style with the style of the house for the best value.
“Older doors are more likely to have holes or leaks in them, allowing outside air to get inside and vice versa,” said Kelly Watson, marketing coordinator of Whit Davis Lumber Plus in Jacksonville. “New weatherstripping or adhesive foam will also have an impact on improving your door’s energy efficiency.”
TURN UP THE KITCHEN HEAT
An attractive kitchen can encourage buyers to overlook some of a home’s less attractive components.
In the kitchen, replacement countertops, a fresh paint color on the walls, new cabinetry and updated flooring offer the biggest ROI.
DREAMING OF A NEW BEDROOM
Remodeling magazine also points to creating an attic bedroom to increase home value. The ROI of an attic remodel that adheres to code can garner an 83 percent ROI. Be aware, however, that many cities have strict codes for finished attics.
“There’s a multitude of building and electrical code hurdles to consider before finishing an attic,” Watson said. “There are many restrictions and regulations that must be followed to ensure safety, so yes, it’s very important to follow the codes.”
HOME-MAINTENANCE PROJECTS
It won’t do much good for owners to improve the aesthetic appeal and functionality of a home if there are existing structural or maintenance issues, experts have warned. Siding replacement, HVAC system repair or replacement, a new roof, and basement-dampness-prevention solutions can be smarter investments than other more flashy remodels. Many buyers have a strict budget for a house, and those buyers may be more likely to buy a house that has few or no maintenance issues. Such buyers will then upgrade the kitchen or baths themselves, according to Harvard’s Joint Center for Housing Studies.
WORTHY WINDOW REPLACEMENT
Angie’s List, a home-services review and referral resource, has found that the average ROI of new windows is 77 percent. The cost of installation and energy savings tend to offset at around the 10-year point.
“Whit Davis sells windows that have Smart Glass technology – glass that is smart enough to block what you don’t want and allow what you do want into your home,” Watson said. “Energy Smart glass improves the U-value and condensation resistance of the entire window unit. That means dollar savings through lowering heating and cooling costs, as well as more comfortable conditions in your home.”
U-value measures heat transfer in windows to determine how well windows insulate
If remodeling is on the horizon, homeowners should give strong consideration to ROI before choosing a project.