Home Improvements That Pay You Back!

If you’re like most Americans, your home is probably your largest asset. That’s why home maintenance and upkeep is key. And once things start to slide, problems can arise. That’s why we want to help you find the right solutions — along with the right financing.

There are always needs to fulfill.

Perhaps your family is growing, and you need additional room. Maybe it’s the garage, roof, or something else structurally that requires attention. Or it could be you’re tired of your outdated kitchen and bath.

The beauty of homeownership is the ability to make a personal imprint — to make your home unique to you. It may be with décor, your home’s furnishings, the type of yard, as well as the more unique aspects, whether it’s a chef-inspired kitchen, luxurious bath, or the ultimate mancave.

As you prioritize what needs to be done, there are other variables to consider.

For example, some improvements may make more sense than others — and give you a better return on your investment. These are the projects that directly improve the value of your home, so if you resell, you’ll gain more of those dollars back.

Every year, Realtor.com publishes its top 22 (cost vs. value) home renovation projects. It ranks each project, and which are most likely to recoup your expense. These are the improvements that make the most sense as they directly add value to your home.

Top Remodeling Projects:

(Source: Realtor.com)

#1 Manufactured Stone Veneer

Cost Recouped: 96%

#2 Garage Door Replacement

Cost Recouped: 94%

#3 Minor Kitchen Remodel

Cost Recouped: 78%

#4 Siding Replacement (fiber/cement)

Cost Recouped: 78%

#5 Siding Replacement (vinyl)

Cost Recouped: 75%

#6 Window Replacement (vinyl)

Cost Recouped: 72%

#7 Deck Addition (wood)

Cost Recouped: 72%

#8 Window Replacement (wood)

Cost Recouped: 69%

#9 Entry Door Replacement (steel)

Cost Recouped: 69%

#10 Deck Addition (composite)

Cost Recouped: 67%

If your project isn’t listed here, peruse the full list at Realtor.com.

Organize your thoughts.

Another good place to start is listing your projects in writing — try using a downloadable worksheet. You can prioritize your projects, starting with the “must-have” needs (structural needs that prevent deterioration, like replacing a leaky roof) to the “would-love” projects (such as a game room).

If you’re not quite sure, try listing your home projects and ranking them in importance. Calculate your approximate total expenses. Then check to see what impact the project has on your home’s resale value.

Also, realize that you may never recoup much of your cost with certain endeavors, the most common being a pool. And that’s okay—some projects you do just for you.

For an informed decision, NerdWallet offers these additional tips:

  • Consider your timeline. The longer you plan to be in your home, the more latitude you have in choosing your personal preference. But if you plan to sell soon, you may need to consider what appeals to a potential buyer.
  • Consult an expert. Ask a realtor, contractor, or design specialist. They can share insights and five and ten-year trends that could impact.
  • Compare home features in your area. Here, you want to ensure improvements align with the norms for your neighborhood.
  • Get an appraisal. A licensed appraiser can do a feasibility study to estimate your home’s current value and its likely value after the improvements.

Source: Realtor.com, Cost vs. Value Report, https://www.realtor.com/news/trends/remodeling-cost-vs-value-report-2020-most-valuable-remodeling-projects/ and https://www.nerdwallet.com/article/mortgages/renovations-decrease-home-value.

See us for help.

We’re here to assist — and we can explain your best financing options depending on the project you choose. Call us at 616.532.9067, and we can chat about your vision.