5 Best Home Improvements to Increase Value

When it comes to your home renovation projects, make sure you're spending your money wisely. Being a homeowner requires you to take care of your house and make the required improvements. Updating your plumbing, HVAC, and roof can prevent serious problems in the future and increase the value of your property. Remodeling your kitchen or bathroom can also increase the usability and appeal of your house to potential purchasers. Here are the top five home improvements you can undertake to help raise the value of your house, according to data from Remodeling by JLC's 2023 Cost vs. Value analysis. The study estimated the return on investment (ROI) by examining the average expenses of 23 significant home renovation projects across the 150 largest U.S. areas.

HVAC Cooling and Heating Systems

Upgrading or Installing an HVAC system can be highly expensive. Major components impacting monthly utility bills are heating and cooling systems. The average job cost is $17,747, based on the JLC report. It had an average resale value of $18,366, or a 103% ROI, even though it would cause sticker shock. Charles Fischer is a real estate investor, broker, and CEO of Fischer Group at eXp Realty on Florida's Space Coast. "Many buyers are looking at the cosmetic upgrades, but are ultimately leaning towards houses that have upgraded the four main systems, including HVAC," Fischer states. "When making purchases, consumers are much more attentive to energy efficiency. People are reviewing all of their expenses, including electricity bills, to ensure they remain within their budget due to the high interest rates.

Replacement Garage Doors

You'll be relieved to learn that replacing your garage door is one of the upgrades that offers a 102% return on investment if yours is old or starting to show signs of wear. The report states that the average cost of installing a new garage door with a motorized opener on galvanized steel tracks should be a little over $4,300, with a $4,400 resale value.

Exterior Stone Veneer or New Vinyl Siding 

Michael Winn, owner of Winn Design + Build in McLean, Virginia says that "first impressions are everything." "When someone pulls up, you want the house to feel well cared for." According to Winn, this signifies that the house was constructed with superior materials and is in acceptable shape for the community, so it's not only about curb appeal. The ROI for installing manufactured stone veneer on at least half of the house and installing new vinyl siding, respectively, is 102% and 94.7%. In some parts of the nation, stone veneer is very common, especially in house projects in the suburbs of big cities in the South. Homes in the Northeast and older homes are more likely to have vinyl siding.

Brand-New Front Door

First impressions aside, installing a new 20-gauge steel front door in place of an outdated one—especially if it has glass and is the same color on both sides—should yield a 100% return on investment. Depending on the type of door and whether you are doing it yourself or not, front doors can cost anywhere from $2,000 to $3,000 or more to buy and install. This makes them an unexpectedly pricey investment. "I tend to recommend spending more on a front door – one that feels sturdy," Winn states. "Even if it's not something that's observed consciously by the buyer, I think on a subconscious level, the quality of the door has an impact on their decision."

Light Remodeling of Kitchen (Midrange)

The final home upgrade that will undoubtedly raise the value of your house is a small- to medium-sized kitchen remodel. Kitchens may indeed date a house. I believe it elevates the whole atmosphere of the house if it has been modernized and seems well-designed and built," says Winn. Upgrade an antiquated kitchen with new hardware, paint or replace the cabinet fronts, install more durable modern flooring, and swap out the appliances for energy-efficient models. The survey estimates that modest to moderate kitchen remodels cost about $26,000 and have a slightly lower resale value of $23,000.

Using cutting-edge cabinets, countertops, and finishing doesn't mean a complete kitchen makeover. The typical cost of that kind of high-end or extensive makeover is approximately $78,000, and it yields a return on investment of about 41%, which is significantly more than that of a midrange redesign. It's crucial to avoid over-renovating in your community. Select contemporary accents that are fashionable but timeless, economical, and energy-efficient without sacrificing functionality.

Keep in mind that every house and market is different. Energy-related projects, such as window replacements, insulation additions, and HVAC replacements, are more valuable in older homes than in newer ones. As another example, "insurance is skyrocketing in Florida," claims Fischer. It is important to keep your HVAC, plumbing, electrical, and roof systems up to date with current codes. Additionally, the roof is crucial so that the buyer can obtain affordable homeowners insurance and a solid wind-mitigation report."

CONCLUSION

This is a fantastic place to start when deciding which upgrades to prioritize to raise the value of your house. Where your money is best spent will ultimately depend on where you live, how old your house is, and how well-kept the houses are around you. It’s always best to consult with an experienced real estate agent, a local expert, who can guide you on which renovations will yield the best results. If you’re looking to add significant value to your home and maximize your equity, reach out to Nadia today for a confidential consultation.