According to Harvard’s Joint Center for Housing Studies, it is estimated that the total amount that is spent by Americans on home remodeling projects in 2018 was approximately $340 billion. This was a 7.5% increase from the year 2017.
While some people think that this meant that homeowners may have found the secret to economic prosperity, this is actually further from the truth, as the average amount actually recouped for these types of projects is decreasing. A survey of real estate professionals found that the average return on 21 popular remodeling projects in 2018 was 56%, which was a decrease from 64% in 2017 and 62% in 2016.
This means that the key is knowing exactly what upgrades can increase home value when the time comes to sell, as return on investment will depend on the type of home that is being sold, as well as who the home is being sold to.
Here are some of the most popular upgrades that can increase your homes value:
- One popular upgrade that can increase home value is replacing your garage door, which is able to recoup approximately 98% of your total costs at resale if you reuse the existing motorized opener. This means that, essentially, a new garage door will be able to practically pay for itself.
- In the event that you may be working on a budget, painting is another great type of project to consider undertaking. Thankfully, repainting your whole home is something that you don’t have to do in order to make it look new again. Instead, simply touch up any chips or flaking areas or repaint your front door in a more bold color in order to help make your entrance way pop. Here are tips to paint like a pro!
- Switching out your fixtures in your bathrooms and kitchen is another great way to increase home value. Newer drawer pulls, knobs, and faucets that match will help give a space a much more modern look, which can result in a bigger impact on potential buyers. It’s a good idea to consult with your real estate agent in terms of trends, as these vary nationwide.
- According to the National Association of Realtors, refinishing hardwood floors will result in recovering 100% of the cost at resale. On the other hand, installing hardwood flooring will recoup approximately 91% of the cost at resale. Despite these facts, the total return on investment on updates flooring will ultimately depend on not just its current condition, but also the price range of the home that’s being sold as well.
- Updating your interior wall colors is another great way to increase home value as well. Ensuring that they are light and neutral will result in a good palette for resale thanks in large part to the fact that buyers will be able to imagine their own belongings being in the space. In the event that you already have neutral wall colors in your home, consider painting the trim, windows, and molding with a durable and washable gloss or satin finish.
- It’s also a good idea to consider replacing your roof as well. By doing this, you will be recovering approximately 105% of its total cost at resale. For instance, according to the National Association of Realtors, a house for sale for $250,000 with a brand new roof will end up bringing more value than one next door to it with the same floor plan, but with a roof that’s about 15-years-old.
- HVAC is also important in terms of increasing home value as well. Potential buyers often ask when this type of system was installed and if a home has a tankless hot water heater. According to the National Association of Realtors, replacing an HVAC system will result in recouping approximately 71% of its total cost after resale.
- Ensuring that the home features energy efficient appliances is another great way to increase home value. In fact, these types of appliances were ranked as being either essential or desirable among approximately 90% of moderate-income home buyers in a recent study.
- Another great way to increase home value is to install a smart thermostat, which is able to adjust the total energy consumption of a home depending on the latest electricity or gas prices. Additionally, you can even phone in instructions, such as turning your furnace on before you even get home.