Cost Effective Home Improvements
Cost Effective Home Improvements
 |
The first question you’re likely to ask yourself when embarking on a home renovation project prior to selling your house is: What is your return on investment (ROI) going to be?
Will you get back the money you spent when you sell your house? The answer depends on the improvements you make. You don’t want to price your home out of the market. Making improvements that create a $300,000 house in a $50,000 neighborhood will hinder you.
You have to make improvements that will maintain your house’s value relative to the neighborhood in general, while also making sure the improvements are the ones buyers want.
Will you get back the money you spent when you sell your house? The answer depends on the improvements you make. You don’t want to price your home out of the market. Making improvements that create a $300,000 house in a $50,000 neighborhood will hinder you. You have to make improvements that will maintain your house’s value relative to the neighborhood in general, while also making sure the improvements are the ones buyers want.
Here are five home improvement projects that will keep you (the seller) and your buyer happy:
1. An Attic Bedroom
This is one of the more expensive remodeling projects you can do. However, if you can afford the average $50,000 price tag, turning your attic into a bedroom is an excellent idea that produces an average 73 percent ROI. Buyers love attic bedrooms because they are charming and add to the usable square footage in a house. You can increase your asking price by $20,000 to $30,000 just by this one improvement alone.
2. Updated Siding
Buyers love vinyl siding for a variety of reasons. It looks good, it requires very little maintenance and it lasts a long time. Using a contractor to install vinyl siding will cost between $3,000 and $12,000, depending on the size of your home. That’s relatively inexpensive as far as home remodeling projects go. Even better, vinyl siding has an average ROI of 88 percent, according to QualitySmith. There are very few remodeling projects that offer an ROI this high for so little effort and expense.
3. A New Front Door
Believe it or not, a new front door can yield a big response from buyers. This is a classic home improvement project that has proven to be a moneymaker decade after decade. It improves the curb appeal of your home and can add safety if you go for a steel door (which offers the best ROI among front doors). At an average cost of $1,100, an attractive stainless steel front door can give you a whopping 97 percent ROI, according to houselogic.com.
4. A Small Kitchen Remodel
Every buyer loves a nice, upgraded kitchen. In fact, the kitchen is one of the first things a buyer looks at when examining a potential new home. Remodeling your kitchen is considered a basic home upgrade when selling your home. You don’t have to go crazy to get an average 88 percent ROI, according to Forbes. Simply upgrade your appliances and add some lighting accents. Reface the cabinets if they are salvageable. Add a coat of white paint (or some other cheerful color like bright yellow) and you’re good to go.
5. A Shingle Roof
Repairing or even replacing your roof will extend the life of your home, and attract buyers. No one wants to buy a home with a sub-standard roof that needs repairs as that seems like an incredibly daunting task. Fix any leaks by replacing individual shingles, or replace the whole roof if necessary. You’ll get the cost back with an average of 60 to 65 percent ROI, according to QualitySmith. Depending on the size of your roof, how many shingles you use, and the type of shingle, a roof replacement will cost between $6,000 and $13,000. A roof repair will cost less. Asphalt shingles are less expensive than wooden ones, but wooden ones have more curb appeal, so take that into consideration when repairing your roof.
