What home improvements should you do? This is a very common concern home owners have. There are usually a few standard updates and upgrades to your home that will give you the biggest return on your investment.
Lets just preface this by saying if you have a home that is only ‘Land Value’ it will not be In your best interest to do extensive upgrades, as future buyers will most likely not see the value you have attempted to put in. Ask your real estate agent or a local contractor if it is worth your while.
First thing is a New Roof. This upgrade may seem like a no brainer, but I am still shocked at the amount of homes I see on the market that have not had the roof replaced in 50+ years! Even if you haven’t done many upgrades on the interior of your home, a new roof may just be the deciding factor for buyers searching for a home. A new roof can increases the resale value by a national average of nearly $12,000. Homeowners who have new roofing installed can expect to recover an average of 62.9% of the installation cost through increased home value. I have inserted the following guide below on roofing materials:
“Slate, copper and tile roofs can last more than 50 years. Homeowners with wood shake roofs should expect them to last about 30 years, while fiber cement shingles last about 25 years and asphalt shingle/composition roofs last about 20 years”
I am going to bundle the next 2 improvements together. The replacement of an old Hot Water Tank and installation of a new High Efficiency Furnace can add instant value to your home. Potential homebuyers view these upgrades as something they don’t have to fix for years to come. Not to mention, a high efficiency furnace will save the new owner hundreds of dollars a year on their heating bill, YAY!
Next home improvement project is Flooring. I don’t know about you, but nothing is worse than going to view a home and having different flooring in every room. I understand a lot of the time homeowners renovate one room at a time based on a budget they have at the time. It is best to try and have your flooring be cohesive throughout. Not only is it appealing to the eye, it is also appealing to homebuyers who don’t have to start ripping out the different flooring in every room. In regards to flooring styles, try and keep it simple and neutral. Just because you love purple floor tiles…doesn’t mean everyone will. This is a common mistake people make thinking they are updating their home, but not actually adding any value because the design is so eccentric. Don’t throw your money away on ‘Personal Upgrades’ that may only be desirable for you or your family, as you will most likely never see this money in the form of a future return.
My last big return on investment item is …drumroll please! Windows. This is sometimes the most costly, but as the old adage sais “you gotta spend money to make money.” Buyers will instantly see the value in replacing old windows! The last thing homebuyers want to do after purchasing a new home is spend thousands of dollars replacing every window. This type of home improvement project has a compelling ROI. Window replacement projects are among the best projects homeowners can do. It is estimated that 85% of the costs can be recouped instantly in added home value!