Projects worth investing time and money in
Every homeowner wants to get the biggest bang for their buck when it comes to home improvements. Whether you are looking to create a space to enjoy while living in your home or intend to sell, know that your time and money investment 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 really boost a home’s appeal and make it more attractive for future homebuyers.
When choosing the type of flooring, both 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 what material we choose; 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. Updating Kitchens
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. Remodeling Bathrooms
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. Sprucing Up the Landscaping
Since the pandemic, homeowners are also spending more time with outdoor landscaping projects and boosting their home’s curb appeal. Creative landscaping not only increases the aesthetic appeal of a home. It also increases its chances of a sale. NAR listed landscape maintenance and upgrades as two of the highest ROI projects (100 percent and 83 percent, respectively).
5. Upgrading Roofing
According to the 2019 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. I can provide you with recent home comps that support the home improvement that you have in mind.
Did you know?
All capital improvements to your home are tax-deductible. This includes home 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 your property’s cost basis. Contact your financial advisor to learn more about tax-deductible home improvements.
Article sources include the National Association of Realtors (NAR), FortuneBuilders, and HomeLight.