Planning to sell your home in the near future and looking for ways to add value? Many home improvements can increase the price tag of your home. However, you need to be careful that the total cost of your renovation isn’t more than the value added. For example, you can often spend more money building an addition or installing a swimming pool than you are likely to earn from it.
For this reason, it’s important to focus on the ROI (return on investment). Below are just some of the most profitable home improvements worth looking into when adding value to your home.
Replacing your old garage door
Average cost: $1,120
ROI: 98.3%
Average return: $1,101
If you’ve got a garage and your garage door has seen better days, replacing it could be a great way to add some value. A new shiny garage door creates immediate curb appeal and the value added can be almost double the cost of installing it. Choose a style that suits the period and overall look of your home – carriage house doors can be great on an old farmhouse property, while rolling shutter doors are great for modern urban properties. Don’t be afraid to choose a bold color to make it stand out. Always choose a trusted contractor to install your garage door.
Install solar panels
Average cost: $12,810
ROI: 20%
Average return: $2,562
Solar panels can save people money by not having to pay energy bills. They can also make your home more environmentally friendly, which is becoming a bigger selling point as more people try to reduce their carbon footprint. As a result, solar panels are a sought after feature and can add a lot of value to a property. The cost of installing solar panels can vary a lot depending on your home’s energy needs and how many solar panels you need to install – you can pay $200 for a single solar panel or $20k for a 10kw system. The average 6kw system typically costs just over $12k.
Install wooden decking
Average cost: $6,000
ROI: 65%
Average return: $3,900
Adding wooden decking to your backyard can be a great way to increase your home’s value. In fact, you’re likely to see a 65% return on the cost of installation (patios typically only provide a 40% return). Wooden decking can cost anywhere from $30 to $60 per square foot. The overall cost of the entire project can vary depending on how large your deck is – your average 14 x 20ft deck costs about $6k to install. Installing it yourself could save you money (just make sure you know what you’re doing).
Fix up your old roof
Average cost: $8000
ROI: 60%
Average return: $4,800
If your roof is visible from the street, the condition of it could have a big impact on the value of your home. An old decrepit roof may put off buyers and reduce value, while a brand new clean roof will make your home more appealing and increase value. The average cost of installing a new roof varies between $1,200- $30,000 depending on the size and material. $8,000 is about the national average. Make sure to look around for the highest rated roofers in your area so that you can ensure the job is done properly. Never attempt to replace a roof yourself unless you have experience.
You can, however, buy the roof sheets or whatever material you are going to be using separately, rather than having the roofer source them for you. This is probably going to work out a little cheaper for you as you are purchasing the materials, so you don’t end up paying the usual charge for this part of the service directly from the roofing company.
Install energy-efficient windows
Average cost: $750 per window ($7500 for your average 10 window property)
ROI: 85%
Average return: $6,375
If you’ve got old windows that aren’t energy-efficient, replacing them could be another way to add value. Such windows can increase the energy rating of your home, making it more attractive to buyers wanting to save money. Shiny new windows also improve curb appeal, also adding to the attraction. There are different ways to make windows more energy-efficient. Double glazing can add insulation making it ideal for homes in cooler climates, while Low-e coating can reduce heat absorption making them ideal for homes in warmer climates. New frames can make a big impact and will typically add the most value (especially if your current window frames look old and worn) – vinyl windows are the most profitable. Avoid replacing historic timber windows on period properties as they can add character.
Remodel your bathroom
Average cost: $10k
ROI: 70.1%
Average return: $7,010 (5 – 25)
Convert loft into bedroom (roughly 50%) https://www.homeadvisor.com/cost/additions-and-remodels/loft-conversion/
$20k (7 – 67)
Average return: $10,000
Add stone veneer (92%)
$12,188 https://modernize.com/siding/types/faux-stone-veneer
Average return: $11,212
Refinish your basement (70%)
$18,400 (2,800 to 34,500)
Average return: $12,880
Remodel your kitchen
A kitchen remodel can often be the most profitable home improvement – you could see a return of over $15k! However, it does depend a lot on how you remodel your kitchen. A major kitchen remodel (which involves gutting out your entire kitchen) can cost as much as $60k and are typically less profitable. Minor kitchen remodels (which usually involve keeping some cabinets or fixtures) usually cost around $20k and are the most profitable. Unless your entire kitchen looks ugly, consider trying to preserve a few features to maximize your return (you can always repaint cabinets to improve them).
Average cost: $20,000 (minor remodel)
ROI: 77.6%
Average return: $15,520