The housing market is still booming and, for many areas, homes are selling quickly. But if you're selling, what home improvements should you invest in?
The harsh truth about home improvements and upgrades is that you almost never get back all that you put into it with your selling price. But some projects net a far higher ROI than others
Seemingly despite the economic woes brought on by the coronavirus pandemic and subsequent government actions, the US housing market is, for the most part, quite robust and thriving. And, as a consequence, a great many owners are looking to sell while the selling is good, so to speak.
Fixing Up the Old Homestead
Aside from some fresh paint and many a landscaping facelift, there are numerous upgrades and improvements that homeowners embark on in the hopes of ratcheting up the resale value of their homes. But do they always get their investment back at closing?
According to an article at HomeLight,
Harvard’s Joint Center for Housing Studies estimates that Americans’ total spend on home remodeling projects will rise from $332 billion in Q3 2020 to $337 billion in the second half of 2021.
Does that mean homeowners have found the key to economic prosperity — expensive renovations that pay dividends at resale?
Unfortunately not…In fact, the average amount recouped for home remodeling projects is on the decline. According to a survey of real estate professionals by Remodeling magazine, this year’s average return on 21 popular remodeling projects came in at 66.5% nationally, down from 68.6% in 2019.
That being said, remodels and even major renovations are taking place across the country as restless homeowners and house "flippers" look to make as much as possible in what seems like a housing sales boomtime.
So, this all begs the question, "What upgrades increase home value and bring the most ROI?"
Being Judicious with Improvements
Many things might look nice and add to the appeal of a home, but not everything will necessarily had value. Which means not every home improvement project will net a substantial "return on investment" for the seller.
Every new year brings its trends and movements when it comes to home decorating, design, and dollar value.
For example, not too long ago major kitchen renovations were all the rage and most, if not all, the money invested in these projects could be recouped when a home sold.
Not this year.
Minor remodels are more likely to earn a decent ROI and one-off replacements or additions seem to be preferred over room-sized projects.
Obviously a DIY approach, if feasible, will net more return if you don't include your own labor in the calculations. But many of the upgrades recommended are beyond the ken of the average homeowner. Unless that homeowner happens to be a contractor or in the trades.
Research, homework, and consulting with a local and knowledgeable real estate professional will save you from investing time and money into an improvement that nets you little or no extra as a seller.
The Top Five Home Improvements with the Best ROI (More or Less)
Because of the number of variables and conditional aspects of this type of forecasting, it's not an exact science. So, we have combed through some of the best listings available and consolidated the top five from all these sources. That being said, there are probably dozens of other home improvements and upgrades that can be done with a favorable ROI.
Stone veneer on the front of the home
For a midrange home, according to Remodeling magazine’s 2020 Cost vs. Value Report, adhering a 300-square-foot band of manufactured stone veneer on the bottom third of the street-facing facade costs an average of $9,537 but can recover about 96% of that at resale.
Steel front entry door
Over the past three years now, statistics have shown that replacing an existing entry door with a steel one has recovered anywhere from 69% to 91% at resale. Home buyers appreciate the low maintenance, energy efficiency, and cold-blocking powers of steel.
Garage door replacement
A new garage door can almost pay for itself , especially if the existing motorized opener is used. Expect to get back about 95% of your costs at resale, according to statistics.
Minor kitchen remodel
Minor is in, major is out. And you can complete a minor kitchen remodel of an average-sized kitchen for about $21,000, and recover about 77.6% of your investment at resale. That major, upscale kitchen remodel you considered would only net you about 58% of your costs.
Fiber cement siding
Fiber cement siding is a siding material designed to look like wood,but will not warp and rot the way real wood generally will over time. And its natural look makes it a popular choice among homeowners and buyers. The average cost to install fiber cement siding is $17,008. By adding $13,195 on average to your resale value, you’re getting 77.6% of your investment back.
Your Local Choice for Home Improvement Debris Removal
Once you decide to hire someone to come and haul away all the trash, junk, and debris from your big home improvement or remodel project, you need to figure out which firm is the right one for the job.
And while you can certainly find some guy with a truck willing to do the job, choosing that alternative may end up costing you more than you hoped to save.
That's another reason why Junk King really is the junk removal firm of choice.
Junk King provides an efficient, safe and eco-friendly waste disposal service so you don’t need to worry about the pick up or disposal of all your junk when you're upgrading your home for sale.
Whether you need our services several times during your remodeling or renovation project, or just once after it is complete, our hauling professionals will ensure that the debris is out of your way so that you can get on with the job.
Our teams specialize in residential trash and junk removal. We can be at your home in mere minutes, so call us today! And our crews are fully insured and well-trained, so you can trust them to get rid of your debris and other unwanted items in a professional and courteous fashion.
One of the best things about hiring Junk King is that we recycle a much of the material we pick-up. This is proof of our commitment to being an eco-friendly removal service.
If you have questions about what we can do for you, give us a call at 1-888-888-JUNK (5865).