Projects worth investing time and money in
Every homeowner wants to get the biggest bang for their buck regarding home improvements. Whether you are looking to create a space to enjoy while living in your home or intend to sell, know that your investment of time and money will add value and is worth the effort.
So which home improvement projects should you invest in? According to the National Association of Realtors (NAR), below is a list of the top 5 projects that may potentially increase the value of your home.
1. Installing Hardwood and Engineered Wood Floors
Your floors are one of the first things homebuyers will comment on when they walk into your home. Having good, solid flooring can boost the appeal of a home and make it more attractive for future homebuyers.
When it comes to choosing the type of flooring, solid hardwood and engineered wood will yield a favorable Return on Investment (ROI). As homeowners, we know that Florida’s high humidity is a big factor in choosing material; therefore, engineered wood is highly recommended. According to the NAR, the average ROI is 106 percent for new floors and 100 percent for refinishing.
2. Update the Kitchen
The kitchen remains one of the most important spaces in our home. As the coronavirus pandemic presses on, more homeowners are spending more time cooking and thinking about upgrades.
According to Fortune Builders, a minor kitchen update such as installing stainless steel appliances can yield an average of 98.5 percent ROI. A recent HomeLight survey reports that “buyers are about 50 percent more likely to put an offer on the house with stainless steel appliances than a house without them.”
3. Remodel a Bathroom
The second most important room in our home is the bathroom. According to HGTV, “springing for a kitchen or bath remodel is a sure-fire investment, often returning more than 100 of the cost.”
A minor remodel includes replacing fixtures, upgrading the lighting, swapping out the vanity, and painting. An average return is 102 percent.
4. Spruce Up the Yard
Since the pandemic, homeowners have spent more time with outdoor landscaping projects and boosting their home’s curb appeal. The space doesn’t have to be large, but it must be well thought out. There are four main elements: a place to eat, lounge, lighting, and greenery for both beauty and privacy. NAR listed landscape maintenance and upgrades as two of the highest ROI projects (100 percent and 83 percent, respectively).
5. Upgrade the Roof
According to the 2021 Remodeling Impact Report from NAT, new roofing can recover 107 percent on average. The appeal of new roofing to a homebuyer is highest on the list of exterior projects.
Which home improvement projects are you considering?
Whether you are selling or not, feel free to connect with me if you have questions about value versus the costs of home improvements. Understanding how much a project could add to resale value is the first step in determining whether or not the investment will pay off; I can provide you with recent home comps that support the home improvement you have in mind.
Did you know?
All capital improvements to your home are tax-deductible, including room additions, heating, and air conditioning systems, plumbing, and outdoor improvements. But you cannot claim the deduction until you sell your home when the cost of additions and other improvements are added to the cost basis of your property. Contact your financial advisor to learn more about tax-deductible home improvements.
Article sources include the National Association of Realtors (NAR), FortuneBuilders, and HomeLight.