What home improvement should be next? Home sellers who factor ROI into the equation when they ask this question are rewarded with high-value projects that bump up home value, while those who overlook the ROI may not recoup what they spent. Add these high-value projects to the top of the home renovation list to grow home value and make the most of a home.
Front Door and Garage Door Replacement
Homeowners who are looking for a quick win can cross this project off their bucket list. Replacing garage and front doors frequently pays for itself with an 85 to 100 percent ROI, as buyers like to see an updated, fresh door for the garage and the home. Steel doors come with a high return on investment because they are durable, tough, and may even help keep the home safe. While they aren't the most attractive, they can set a home apart from others on the market.
Attic insulation returns 107 percent of its value at the time of sale and it also improves home comfort year round. On average, attic insulation cost $1,733 in 2017 and returned $1,866 at the time of sale. Since insulating decreases energy consumption, homeowners enjoy lower utility bills as long as they're in the home.
Both major and minor kitchen remodels return a fair share of the money spent at the time of resale. A major kitchen remodel—think new counters, cabinets, lighting and appliances—typically returns 65 percent of the money spent. A minor kitchen remodel has a higher ROI, which is usually 70 to 80 percent. Homeowners may wish to remodel an older kitchen before putting the home on the market or renovate a dated kitchen to enjoy it while they're in the home and recoup value at the time of sale.
Homeowners with older properties often put replacement windows at the top of their list, because older windows often lack energy efficiency. Window replacement may improve home comfort, since newer windows block air leaks, and help improve energy efficiency. The project delivers 68-78 percent ROI at the time of home sale, which makes it a top recommended home improvement.
All of this depends on the current condition when a homeowner places their home on the market. If the market is flooded with properties, a Victoria West homeowner may need to lower prices to compete, which reduces the actual return on investment. Conversely, when the market is tight, homes that have been lovingly updated will command even more value for high-dollar upgrades. A real estate agent can suggest what improvements will boost a home's asking price, so that's always the best place to start when putting together a bucket list of home repairs before a sale.
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The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions.