Add Value To Your Home
As a home owner, you are aware that the cost of maintaining a home is all part of owning a home because it is an asset. The best way to maintain the value of your asset is to make necessary repairs to it, and if you are getting ready to put your home on the market, this is a must do.
If you put your home on the market without making repairs, no doubt a buyer will have the mindset to discount your asking sales price by the full cost of the repairs. OUCH! On the flip side, if you make the needed repairs you still won’t get a 100% return on repair costs. However, your home will be more appealing to a buyer without obvious needed repairs staring them in the face, or showing up on home inspector report.
So what can you do to add value to your home? Make kitchen and master bath renovations, or add additional heated/cooled square footage to your home. According to national estimates you can expect to recoup 70-90% of what you spent. That’s a pretty good return on your investment.
When making renovations, we don’t always think of ROI . As a home owner myself, I’m right there with you! You want your home to have curb appeal (landscaping), you’re tired of the neighbors dog digging holes in your yard (fencing), you want to lounge on a float in your pool with a cold cup of anything on hot days, you need new windows and want to install hardwood flooring. Here’s the kicker: the ROI for these additions is low. new windows 25-30%, new flooring 20-30%, swimming pools 20-25%, fences/landscaping 15-20%.
Here are the home improvements with the highest ROI:
Factory finished steel entry door – ROI 175.3%
Garage door replacement – ROI 134.1%
Stone veneer accent– ROI 99.2%
Bathroom Remodel – ROI 97.6%
Backup power generator – ROI 94%
Vinyl siding replacement – ROI 93.9%
Bottom line: Always make necessary repairs, but when it comes to making improvements to your home and property realize that these improvements will not always raise the value of your home as much as you would like..