When looking to take on home improvement projects, return on investment (ROI) is important to many homeowners. Some projects offer more ROI than others. Below, we will discuss some of the more valuable projects when it comes to return on investment.

Explaining Return on Investment

While every project you take on in your home will cost money, some will impact the value of your home more than others. Generally, you will rarely fully recover the cost of a remodel entirely, but you want your improvements to make your home value higher than when you started.
There are several key factors in determining the ROI of a home improvement project. Firstly, whether the project fits with market trends for home design. Following what is trending and revitalizing a space to fit those trends can go a long way in providing good ROI. The standards set by your neighborhood can also factor in. If your improvement stands above your neighbor’s property, it is likely to be a good investment. Meaning, that if most kitchens in your neighborhood haven’t been updated in 10+ years, your recent remodel can stand out as a good value. Lastly, the quality and durability of your project. Using higher-quality materials, more durable options and high-value labor can drive the ROI up. Potential buyers want to move into a home that will last.

Should I Care about ROI If I Don’t Plan on Selling?

You might not need to care as much about ROI if this is your forever home but don’t discount it entirely. There are many areas where it may matter. This can include home insurance, asset management, and more.

Kitchen Remodels Offer Strong ROI

Kitchen redesigns often have strong ROI. Overall, it is probably the best place to start. Even smaller updates, such as replacing a backsplash or redoing the floors can usually improve the value of your home. When looking to redo your kitchen, gutting the cabinets completely may not be necessary if they are in good condition.

Bathroom Redesigns and ROI

Following the kitchen, the bathroom will generally have the next highest ROI by room. It is one of the most recommended remodels by real estate professionals. Replacing fixtures and other easier changes can have up to a 70% return on investment. However, completely renovating and rearranging bathrooms can lower that to 45% or less. Generally, it is best to leave fixture positions where they are to maintain the best return on investment.

Repainting Rooms

One of the most cost-effective improvements you can make is repainting rooms. A fresh coat of paint can make a big difference in home value and curb appeal. Neutral colors are more popular and can attract more potential buyers.

Landscaping Improvements for Return on Investment

The exterior of your home can be an important investment. Improving curb appeal and boosting the overall draw of your home can be worth the cost of some bushes and flowers. Greenery improvements can also do wonders for the energy efficiency and air quality of your property. Making these improvements can benefit you and your family in a variety of ways.

Power Washing and Curb Appeal

Power washing the exterior of your home can be a cost-effective way to boost your home’s curb appeal. Removing dirt, dust, debris, and pollutants from your property can be a great way to boost curb appeal. Power washing can be especially important after the Spring when pollen coats everything. Power washing is also important if you plan on repainting your home. You should always have it power-washed first.

Porches, Patios, and Decks

Adding or upgrading an existing porch, patio, or deck can be great for your ROI. An outdoor entertainment space provides a solid return on investment and is a great draw for potential buyers. A versatile outdoor entertainment space can be a major undertaking, but a great improvement for the home. Durable, weather-proof materials can make a big difference here. When upgrading your backyard space with ROI in mind, avoid adding a pool. While enjoyable, pools rarely offer a quality return on investment.

Hire a Licensed Professional for Best Return on Investment

One of the best ways to improve a project’s ROI is to get it done right the first time. Hire a licensed and insured professional for any of your home improvement projects. They can help ensure the job is done right the first time. A licensed contractor will make sure that any improvements are up to code. Otherwise, you may be facing more costs when attempting to move your property on the market.

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