Upgrades and renovations to your home may help to increase the value.
Owning a home requires regular maintenance to retain its property value, but you can also include home improvement projects that offer a significant return on investment (“ROI”).
You may find you need to take out a home improvement loan to finance these projects as they may be well worth the investment.
This guide will help you determine which project you might consider first, based on the potential ROI it will bring to the value of your home.
10 Home Improvement Projects That May Add Value to Your Home
Home improvement projects not only potentially increase the value of your property, but they also can enhance your satisfaction with the home. According to the real estate giant Zillow, each of the following projects may increase your home value by the values listed below.
The cost of each project depends on whether you invest in a do-it-yourself (“DIY”) project or hire a contractor. Also, these are national averages.
The values can change based on your location. For example, the home values differ vastly in Beverly Hills, California compared to Billings, Montana.
The projects listed below are both upgrades and ones you may need to do to maintain the value of your home, and the estimates are an average of the cost per project:
1. Kitchen Remodels
The kitchen is one of the most important rooms in the home, according to Zillow’s competitor Trulia. It is where you will host dinners and spend a lot of your time when you’re staying in.
Kitchen renovations can range from $26,000 to $75,000, depending on how many luxury modifications you’re making to the space. Zillow says you can expect to recoup 72.2% of the value.
2. Renovated Bathrooms
Bathrooms are another room that real estate experts agree people value and may offer the best ROI when you remodel the space. It is also a room where even a modest upgrade may add value.
You can also do a full renovation, add a master bath, and include luxuries such as heated floors or towel warmers. These projects cost about the same as kitchen remodels and potentially offer the same percentage in recoup value.
3. Finished Basements
If your home has a basement, finishing the area to add extra living space may raise the value based on the increased square footage. You can potentially expect to recoup around 70% of the total cost of renovations.
According to Home Light, a finished basement project will cost between $18,400 and $34,000, which largely depends on how you elect to finish the space.
For example, if you add a recreational room and a bathroom, the costs of materials will differ from adding bedrooms because you will need additional lumber for dividing the space into more rooms and the materials to design closets.
4. Updated Fixtures
Upgrading a fixture is a small project that you can most likely do yourself. Swapping out doorknobs, adding upscale outlet covers, and upgrading cabinet handles improves the aesthetic of the house.
If your fixture upgrades include faucets and swapping out the older outlet wiring for new wiring, you may need a professional installer or electrician. These projects are typically inexpensive but may significantly increase your satisfaction with the space.
5. Deck Additions
When adding a deck (or improving an existing one), you have the choice between wood or composition. Depending on where you live, one might be more beneficial than the other. For example, if you live on the coast, wood may deteriorate quicker in the sea salt air.
The experts at Zillow say that for wood decks the expense is on average $16,766. For composition, the cost is closer to $22,426. The recoup value ranges from 63-65%.
Whether you install hardwood, quality carpet, or other luxury floorings, according to HomeLight you may recoup as much as 106% of the cost in your home’s value. Although, that estimate also depends on the condition of the home overall.
If you have pets or children, the deterioration of the flooring can decrease the resale value of your home. If you make upgrades and remain in the home before resale, the recoup value potentially will decrease.
7. Siding the House
If you plan to put siding on the home, you have the choice between vinyl or fiber-cement. The costs and recoup value range according to the materials you choose.
Zillow experts estimate vinyl siding may cost around $17,000 with a recoup value of 68.3%. Fiber-cement siding may cost closer to $20,000 and add a recoup value of 69.4%. It may potentially last longer.
According to the National Association of Realtors Research Group, you may expect to recoup around 107% of the cost of redoing your roof. The cost for a new roof has many variables that make it difficult to quote a range because of the various materials available, the grade of the roofing, and the size of the roof.
9. Window Replacement
Replacing your windows is another project with material options that affect the price and the potential recoup value. Some window material options available are:
According to Zillow, vinyl windows will cost on average about $19,385 with a recoup value of 68.6%. Wood windows cost around $23,219 with a recoup value of 67.4%.
10. Garage Door Replacement
As one of the most significant visual elements of your home, the garage door may cost the least when it comes to installed upgrades. It is also a project that may recoup some of the most value in relation to the price. Additionally, it may add to the curb appeal. A quality garage door will cost around $3,900. The recoup value is roughly 93.8%, according to Zillow.
Whether You DIY or Hire a Professional, Get the Financing You Need
Any time you upgrade your home, you potentially add value. Projects you do yourself may cost less than those you hire a professional contractor or designer to complete.
That said, you may need the expertise of a professional. Whether you choose a DIY project or hire a contractor for a major remodel, you will need the funding.
At Mariner Finance, we offer home improvement project loans to provide the resources you need to help design your dream home.
Are you looking to fund your next home improvement project? Apply for a personal loan today.