Home renovations are one of the hottest topics in 2021. It gives an owner the chance to turn their space into exactly what they need it to be, whether they have just moved in, making more room, or getting ready to put it on the market. Home renovations can increase the value of a home very quickly, but there are some instances where it gets pricey and the return on investment might not be what you expect.
The market for home renovation continues to flourish, especially with homeowners being stuck inside and realizing that it is time for upgrades. That being said, it recently has been tough to get materials and labor due to supply-chain disruptions brought on by the pandemic.
It is important to weigh out the pros and cons of each project, making sure the remodel will retain value when it is time to sell the home. Below are a few examples of the highest and lowest returns on home renovation projects.
Updating your garage door is one of the top improvements you can make and see a high return on investment. One of the main reasons is due to the fact that it improves both the functionality of the home and it’s aesthetic. The average cost for a garage door installation is pretty low, but the benefits are pretty high, with a 94-97% return on investment (ROI).
Manufactured Stone Veneer
Adding stone veneer to the outside of your home is one of the easiest ways to add curb appeal. The cosmetic upgrade makes the home more attractive and is a pretty easy project that can be installed quickly. The manufactured stone looks pricier and natural than other options and does not weigh down the foundation (which could result in future structural issues). One tip for those considering adding manufactured stone veneer to the outside of their home, is to only use it as an accent design on a specific part of the house. The ROI for this project sits around 92%.
A Minimal Kitchen remodel
We all love a stunning kitchen that has all the bells and whistles. While we only recommend a full facelift if this is your forever home, this should not stop you from drafting up the kitchen of your dreams (just on a lower budget). It is always a great idea to start with replacing old appliances so they are updated and energy efficient (this can be a plus for your energy and gas bill).
A tip for homeowners looking to renovate their kitchen, go with vinyl flooring. These days, vinyl flooring looks just like original hardwoods, without emptying out your wallet. Vinyl is also easier to maintain, especially if you have animals and children running around, bringing in mud and playing rough on the floors. The return on investment for a minimal kitchen remodel is around 72%.
A backyard patio renovation is one of the lower return on investment projects you will see when making improvements to your home. While it isn’t as low as some, it is definitely a project that you have to truly want for your own added value. Everyone seems to be updating or adding a backyard patio, especially since we are spending so much time outdoors. Because of this, there is a high demand for materials and a low supply of it. This means the cost for material can be extremely high. Choosing lower grade materials definitely helps keep the cost down, but there is very minimal resale value in a nicer patio. The ROI for adding on a backyard patio is about 55%
We must say, during the summer months, the idea of having a pool directly in the backyard sounds absolutely incredible. Being able to cool off in this thick July heat would be ideal, but does it really make sense to go as far as adding a pool to your backyard? While a pool can add value to how you enjoy your home, it won’t add much value to the resale of it. It is an extremely expensive investment that comes with yearly maintenance. It also requires the right buyer to purchase a home with a pool. Families with young children or animals may be instantly turned away from a home that has a pool. The ROI on this renovation is down at 7%, but again, can be priceless if it makes the owner happy!
Remodeling your home will bring added value when it comes time to sell, but make sure you have a good understanding of the ROI on every project. Buyers are more likely to pay for modern updates, but you have to make sure they are on trend for the time period you are aiming to go on the market.
Renovations can require a lot of work, but looking for a lender in Maryland is easy! Ken Venick has over 35 years of experience in the real estate business, so you’ll have peace of mind knowing you’re working with someone respected and knowledgeable. Contact us today!