When fancy appliances and new granite countertops persuade homeowners to start remodeling their homes, their first thought is to do a project that adds flair and decorative appeal to their space. While these are good options for home improvement, you’ll want to consider the amount of value you will be adding to your home with these projects. Even though most improvements add some measure of value, deciding which will give you the best return on investment can be difficult. American Awnings services homes all over south-central Pennsylvania, including Carlisle, Gettysburg, Chambersburg, York, and more. Here is our guide on home improvements that increase home value and will give you the best return on investment.
What is a Return on Investment?
Return on investment, often referred to as “ROI”, is used to measure how profitable an investment is relative to the cost of the investment. ROIs vary for each project. For home improvement projects, the ROI relates to how the project increased the home’s resale value, hopefully proving that the investment was a wise choice. Frequently, the projects that seem like the best investments don’t bring the greatest rate of return, while those that seem like smaller projects bring substantial returns. Real estate professionals routinely weigh in with their expert advice, and homeowners can couple that advice with Remodeling Magazine’s annual “Cost vs. Value Report” to reap the greatest financial impact from their renovations.
Projects That Have High ROIs
Awnings
Awnings for decks, windows, patios, and porches are great ways to increase your home’s curb appeal. They provide shade and protection from UV rays, save energy, and increase your home’s resale value. Adding an awning has a high ROI, ranging from 60% to 80%.
Awning Replacements
Here in south-central Pennsylvania, we experience all types of weather. Lots of rain, snow, wind, and other weather elements can heavily wear down outdoor products, including your awnings. If you notice your awning fabrics are getting old and wearing down, replace the fabric with a new one. Chances are the frame of your awning is still in good condition, and a fabric replacement will make your awning look as good as new.
New Front Doors
Across the United States, installing a new steel door on the front of a home can greatly impact the resale value of a property. You can even get a 100% or more ROI for this project, a considerable return for such a simple renovation. To get the best value, match the new door’s style with the existing style of the house.
Kitchen Updates
An attractive kitchen can encourage buyers to overlook some of a home’s less attractive components. In the kitchen, smaller remodeling projects tend to have a higher ROI than larger projects. Projects like replacement countertops, wall color changes, new cabinetry, and flooring offer the biggest ROI.
Attic Remodel
Remodeling Magazine also points to creating an attic bedroom to increase home value. There are many ways to use this space. You can add a new bedroom, TV room, or even a game room. The ROI of an attic remodel that adheres to code can garner an 83 percent ROI.
Home Maintenance Projects
Experts say there’s little good to improving the aesthetic appeal and functionality of a home if there are existing structural or maintenance issues. Siding replacement, HVAC system repair or replacement, a new roof, and basement dampness prevention solutions can be smarter investments before other flashy remodels. Many buyers have a strict budget for a house, and those buyers may be more likely to buy a house with little or no maintenance issues. Such buyers will then upgrade the kitchen or baths themselves, according to Harvard’s Joint Center for Housing Studies.
Window Replacements
Angie’s List, a home services review and referral resource, has found that the average ROI of new windows is between 63% and 67%. For window replacements, the ROI depends on the materials you use. Wooden window replacements tend to have a lower ROI than vinyl window replacements.
If remodeling is on the horizon, homeowners should strongly consider the ROI of the project before deciding to start it. An easy home improvement project to increase your home value is to add an awning to your home. With American Awnings, you can get a beautiful awning in south-central Pennsylvania that will improve your outdoor living experience while increasing your home’s value. We will work with you every step of the way, from your first contact with us to installation. Contact us today to get a free quote for your next home improvement project.