Home renovations are on the rise. According to a Harvard Joint Center for Housing Studies report, home improvements and repairs grew more than 3% in 2021 despite the overall economic downturn.
However, not all home upgrades and renovations are created equal. Whether or not a project is “worth it'' is twofold.
“When my clients ask me if a project is worth the investment, I always advise them to consider two things,” said Kelly Boenzi of the Zimmerman Group. “One, what’s the ROI (return on investment)? How much value is added to your home as a result of the project if you were to sell? And two, does it increase the livability of the space for you and your family?” She continues, “Both factors are important to consider before jumping into a home improvement project.”
Return on investment is a term used to measure the profitability of an investment. To calculate ROI you can divide the cost of the project by the expected return. ROIs are typically expressed as percentages: the higher the percentage, the better your returns.
To make sure you’re getting the most bang for your buck, before you call up the contractor take a look at the Zimmerman Group’s list of home upgrades that offer the best return on investment.
1. Minor Bathroom Upgrades: Nothing kills the vibe of a beautiful home like an outdated bathroom. Potential buyers are likely to see dollar signs in those dated countertops and chipped tiles.
Average ROI: 102%
- Updating countertops.
- Installing modern fixtures.
- Upgrading your lighting.
2. Exterior Improvements: An overgrown yard, chipping paint, or dated siding can ruin your home’s first impression. It can also overwhelm brown-thumbed and non-handy potential buyers. Head off these concerns by making smart improvements to your home’s exterior.
Average ROI: 68% - 100% depending on the project.
- Cleaning up and simplifying your plantings.
- Upgrading vinyl siding with fiber cement siding.
- Adding manufactured stone veneer.
3. Minor Kitchen Remodel: It’s been said bathrooms and kitchens sell a home. So, it makes sense to invest in some minor kitchen upgrades to maximize your home’s appeal.
Average ROI: 98.5%
- Refacing or replacing your cabinets.
- Upgrading your countertops.
- Modernizing your fixtures and hardware.
4. Attic Bedroom Conversion: Adding more rooms and more square footage to your home is a great way to up your home’s value. But, these renovations usually come with a hefty price tag. If you’re lucky enough to have a home with a convertible attic space, take advantage of it and add an extra room.
Average ROI: 93.5%
- Adding a closet.
- Creating a flexible space that can serve a variety of purposes.
- Insulating the space properly.
5. Major Bathroom Remodel: If your bathroom needs upgrades or repairs beyond a basic facelift investing in a full remodel will still give you a decent ROI.
Average ROI: 91%
- Correcting awkward layouts.
- Upgrading flooring.
- Adding a double vanity.
If you’re looking to jump on board the home renovation bandwagon these five projects will give you a great return on investment.
The Zimmerman Group’s agents are here to answer all your real estate questions. If you’re ready to experience something greater, contact us today.