Is your home in need of some updating? Did you just receive a bonus check or a tax refund from the IRS and are not sure how to use the money as best as possible? Investing money into your home with select home improvement projects can have a significant impact on your home’s value. Here is a list of enhancement projects according to research teams from both the National Association of Realtors and Realtor Magazine that include some of the highest returns on your investment.
Front Door – Replacing a boring or beat up front door with an architecturally stimulating one can enhance your home’s curb appeal and also increase energy efficiency and safety. A new steel entry door on average costs just over $1,100 but has a ROI of over 96%.
Garage Door – Continuing on the theme of exterior doors, replacing those old garage doors with modern ones costs on average about $1,500 and has an ROI of over 83%. A garage is sought after by many buyers and has a big impact on appearance making for a great investment.
Windows – Your home’s exterior appearance would not be complete without the importance of quality, functioning windows. New, energy efficient windows can cut down on your energy costs and potentially earn you tax credits with select models. Replacing windows with wood replacements has a 79.3% ROI while vinyl replacements are at 78.7%.
Deck – Decks are ideal for outdoor enjoyment and can provide a great space to entertain. A 16 foot by 20 foot deck will cost on average about $9,500 but you will gain an 87.4% return on it after resale. Already have a deck? Consider giving it a facelift with a fresh coat of paint or stain, adding a bench or screening.
Add a Bedroom – An additional bedroom can add tremendous value to your home. Building out an attic into a 15 foot by 15 foot bedroom with a 5 by 7 bathroom with shower does cost you close to $50,000, however, you can expect an 84% ROI on the project.
Update Your Kitchen – Kitchens are one of the most important rooms in any home. Fortunately, you don’t have to gut your kitchen down to the studs to make add value. Consider keeping your existing cabinets but replace the doors and drawers. Swap out those older appliances with some new energy models along with a new sink and countertops and you will have made a big improvement for significantly less than a full remodel. This type of mid-range remodel can yield an estimated 82% ROI.
Interested in another great financial move but don’t want to take on a project? Make one extra mortgage payment per year and apply this to your mortgage principal. This can reduce your overall debt and brings the lifespan of a 30 year mortgage down to 22 years.