4 Home improvement projects
with high roi

June 10, 2022

Being a homeowner can be an extremely rewarding experience and adding your own personal touch to your home gives you a sense of pride and individuality. By making updates to your home, you’re not just making your life better in the short term. You’re also making an investment in your future.

Ideally, the increase in the value of your home will exceed the cost of the improvement. However, that is not always the case. It can take years for the appreciation in your home to recoup some expenses unless you are planning to stay in your home for an extended period of time. You may want to consider other updates that will payoff sooner.

Here are a few simple rules to follow to provide a high Return on Investment (ROI). That means you are likely to get back most of the money you put into it.

  • Seek relatively low-cost improvements that require little to no maintenance.
  • Consider saving money by doing part of them yourself. Keep in mind that even if you are confident in your DIY skills, certain tasks might be best left to a licensed professional with available references.
  • Shop around and get multiple quotes to see what the range of prices in your area may be.
  • Look for ways to improve your quality of life while being as thrifty as possible when choosing projects.

To give you some ideas to consider as you start your planning, we have assembled four home remodel projects with the above suggestion in mind that can improve the resale value of your home.

1. Replace the front door

There’s an old adage in real estate that suggests the features get tours, but the front porch gets sales. People make decisions on home-buying all the time by starting with a gut reaction and finding reasons to support it later.

Why not start your home remodeling project with the first thing you interact with on your house: the front door? Upgrading an old, poorly fitting front door with a newer energy-efficient model is a cheap, quick project that can instantly improve your home’s efficiency and aesthetic appeal. Best of all, hanging a door can be done in an afternoon!

Average priced, energy-efficient front doors have a high ROI. It’s also a chance to be creative. A new front door can add a splash of color, and window placements can break up a monotonous front profile.

2. Minor kitchen remodels

Replacing major appliances and installing new flooring is a difficult, time-consuming, and expensive tasks. Being without a kitchen for weeks on end can be a nightmare, and the number of professionals needed to install new lighting and other features is mind-boggling.

Minor kitchen upgrades, like new cabinets, counter-tops and energy-efficient cook-tops, are comparatively inexpensive and the average estimated return on investment can be impressive. Just like with the front door, the changes are mostly aesthetic. People perceive a more modern-looking kitchen as being a better fit than a more “retro” look.

This is also a chance to customize a place where you spend a remarkable amount of time. Having an improved kitchen layout can make it easier and more enjoyable to cook. This will encourage you to eat more meals in, and if your budget allows you to purchase energy-efficient appliances, they can lower your future electric bills.

3. Wooden decks

A beautifully designed outdoor space is one of the hallmarks of the American dream. Where else can a family sit and enjoy a frosty lemonade on a hot summer day? Or watch the kids play in the yard while tending the grill on a wooden deck!

Wooden deck additions were unpopular for years, as consumers saw them as luxuries. During a recession, remodeling dollars tend to focus on needs, like kitchen and bedroom updates. Since the pandemic started, people began looking at decks as valuable extensions to their living space. Decks are a great way to increase the play space for a modest cost.

Bear in mind that, just like air conditioning in Alaska, a deck in a climate where it is inhospitable outdoors for much of the year will not have as much value as one in a more temperate area.

4. Convert an attic space into a bedroom

For most houses, the attic is an afterthought. It’s a place where unused craft projects and abandoned hobbies go to die. Consider turning that dead space into living space with a remodeling project!

Turning an existing attic space into a spare bedroom or office, complete with its own bathroom, can be done for a slightly steeper price. This can include constructing a room, extending utilities to it and adjusting the exterior of the house to accommodate the new space.

If you have adult children or relatives visiting from out of town, an attic room can be a wonderful guest room. You could also rent it out for additional income! Keep in mind that creating additional living square footage can be quite an undertaking and may be left best to professionals.

The most important thing to remember when it comes to home renovation is to set your goals and establish a budget ahead of time to make sure your plans are obtainable. If you need additional funds beyond your current budget, you could consider a Home Equity Line of Credit (HELOC), extra cash out from a refinance, or a 2nd mortgage. Our Mortgage Loan Officers would be happy to help you figure out which of these products can help get your project started.