Remodeling a property takes serious effort, time and a significant financial investment. A kitchen renovation can cost you well above $20k, but maybe you can finish the entire project in just $3k. The question is which home improvements pay off in the long run? If you want to sell a home after renovation, will you get any return on your investment?
This article talks about home improvements that have a proven record of bringing profits. Some of these updates are essential; others will add the wow factor to your home. Please note this blog is focused on home renovation which is different from remodeling. So, we will be talking about major & minor updates.
It may cost around $9,000 to replace the siding, but the return on investment can be more than 92.8%. That means you will get more than $8k on the investment of $9k.
I cannot insist this enough. Exterior paint is often not considered the selling point of a house, but it can make or break a sale. On an average, the external renovation brings 95.5% of the original investment. The outside projects include siding replacement, front door replacement, and painting.
Steel front door replacement has an ROI of 101%. Other doors have a return rate of around 90%. Choose a door that goes with your home style and paint it in a trendy yet neutral color.
Landscaping adds curb appeal to your home, and the curb appeal sells your house. Beautiful landscaping has a return rate of 100%. Yes, you have read this right. You will get your money back when you update the landscaping.
According to HGTV, the national cost of landscaping is $5000, and the buyers will be happy to pay the same or more when you sell your property.
If you are planning to replace windows, then go ahead. It will be a nice investment. Just take care of energy savings, and install energy efficient windows because they will provide double benefits. Newly installed windows will look beautiful, and buyers will save money on electricity bills.
The ROI of this project is close to 89.6%.
Again, we are talking about painting, new switchboards, new lighting, and minor updates in the living room. If you are planning to sell, then you will need to stage your house. When staging, it is best to update your living room because prospective customers will spend a significant time in the living area.
The ROI of this project is 66%.
This list is limited to 2 projects only. We will talk about renovations that require way above $5000 but stay under $10k. Our goal is to find the differentiating line between overspending and investing. When we talk about remodeling, it is easy to go over your budget. However, every improvement task does not produce a great return. You have to be careful. Spending over your budget will surely kill the profits. Examples include major bathroom & major kitchen remodels if you are not selling in the luxury market.
So, what is small scale kitchen remodeling?
The national averages say that a minor kitchen renovation costs around $18k and a major remodel has a price of $54k. We cannot say the same about Illinois.
In fact, we only study national averages to get an idea of the home remodeling market. We mix these statistics with experience and local trends to get the best results. For minor kitchen remodeling, we would like to stay below $8k. In some cases, you can get a beautifully remodeled kitchen for just $5,000.
Just like the kitchen, extensive bathroom remodeling does not pay significant returns, but you can get closer to an 80% return with the help of minor renovations.
Focus on painting, add functionality, install new faucets, curtains, use tile stickers, replace the floor, and you get a remodeled bath. You do not always have to replace the floor and cabinets if the foundation is solid. Just use new tile stickers, clean & paint the old cabinets and your job is done.