Projects that increase the value of your home Remodel the kitchen. Kitchen updates pay off. However, the ROI of a bathroom renovation often follows the same pattern as kitchen renovations. In terms of return on investment, exterior renovations are the ones that rule and have done so for the last 30 years, says the Remodeling report.
In fact, four of the top five jobs with an ROI greater than 100 percent are outdoor improvements. In the case of home improvements, return on investment (ROI) describes how much money you get back when you sell your home. Only a few projects have an ROI greater than 100%, meaning you earn more than you spend. However, an ROI of less than 100% isn't bad: you can continue to enjoy the improvements in the meantime and then recover part of your investment. For their long-term ROI, new vinyl windows recover more of the initial cost (about 67%) than new wood windows (63 to 66%), according to Remodeling Magazine and the Remodeling Impact Report.
When looking to add value to your home, invest in the essentials, such as updated HVAC systems, insulation, and updated electrical panels. Incorporating renewable energy elements, such as geothermal heating, solar panels and wind energy, can be attractive to energy-conscious buyers. And if you sell, you can make your home more attractive to buyers by adding an extra room or finishing the basement, attic or garage so that it can be used as a home office, gym or guest room. Often, if your home only has one bathroom and several bedrooms, adding an additional bathroom to the design can add value to your home and provide a 51% return on investment, according to This Old House.
The most immediate benefit you'll get from any home improvement project is the added joy, functionality, and experience of living with the improvements.
