Home improvement projects with the highest ROI

Your home is many things. It is a home for your family: a quiet place where you can relax and get away from it all. This is where you’ll host friends and family and make new memories with every visit. And it’s your nest egg. For many homeowners, the single-family home is the biggest investment in the future. One of the best ways to protect and grow that investment is to complete home improvement projects with a high return on investment (ROI). That means investing in rebuilds and changes that can eventually pay off on a large scale.

Start by taking care of the essentials

It might feel like a homeowner needs to do their homework before going out with their friends, but you need to tackle all the essentials — including critical repairs, maintenance, and upgrades — before moving on to other remodeling projects. After all, a new kitchen can increase the value of your home, but it doesn’t matter if you have a bad roof that makes selling your home nearly impossible. If your roof, plumbing, electrical, foundation, or structural work needs it, it needs to be done first.

An effective and efficient cooling and heating installation is essential for every home. Whether you live in a colder climate or one where the heat index makes you swoon, a properly functioning HVAC system is a must. If your heater or air conditioner is on its last legs, you should really prioritize replacing it before moving on to other home upgrades. A new furnace or air conditioner will not only bring you peace of mind, but it can also improve the energy efficiency of your home and lower your energy bills for years to come. If you’re thinking about listing your home, new HVAC systems can also be a boon to your home’s market value.

Once you’ve completed all the major repairs and modifications, it’s time to move on to other upgrades. Let’s move on to the kitchen and bathroom next.

Upgrade your kitchen and bathroom

Flash back a few decades and the kitchen was a far less important space than it is today. In fact, in the modern American home, the kitchen has merged several other rooms – the dining room, the drawing room and even the living room – and has become the most important room in the house. This is where homeowners receive their guests, spend time with their families and cook healthy meals together. It should come as no surprise that homebuyers value updated, highly functional kitchens. On average, this project yields an 80.5% return on investment – one of the highest among major renovations.

When looking to upgrade your kitchen, focus on the essentials first: cabinets, countertops, and flooring. Those are the building blocks of a quality kitchen, and this is where you don’t want to cut corners. The combination of these three aspects can make up a large part of your remodeling budget, but investing in quality materials and installation will pay off in the long run. Once you’ve determined your kitchen style, complement your choices by adding a backsplash and installing a new sink. Don’t forget the lighting: the right pendant lighting over a kitchen island combines form and function in your new sleek kitchen.

When the kitchen is remodeled, turn your attention to the master bathroom. On average, homeowners who undertake a bathroom renovation see an ROI of 70.1%. To stretch your money further, avoid major layout changes and instead focus on the shower, toilet, flooring, and vanity. We recommend working with an experienced remodeling contractor who can help you with all the plumbing work so you can tackle things like tiling and repainting the walls.

Invest in your garden

Many homes have a stunning backyard with a wooden deck that people love to hang out on. If you want your home to be competitive with others in its price range, an additional patio could be a worthwhile investment. In general, new decks have a 75.6% ROI, making them one of the best outdoor investments. Even if you’re not ready to invest in a new patio, you can still make effective changes to your yard. Planting new trees or adding a garden bed can be a great way to redesign the space and add greenery and shade.

There are so many potential ways to upgrade your home that it can be difficult to know exactly where to start. As mentioned above, a good place to start is to talk to an experienced remodeling company in your area. They can provide you with ideas and help you plan your project successfully from the start.

If you’re looking for more inspiration for your next project, be sure to check out this great infographic. It includes a breakdown of the average ROI for the projects discussed above, as well as several others including replacing garage doors and adding stone veneers. Look below!

Additional Resources

  • Should You Get a Home Renovation Loan? – When it comes to home renovations, it can sometimes make sense to get a loan to cover the expenses as the house will appreciate in value, thus offsetting the cost of the loan. Homeowners should learn how home renovation loans work to get the most out of them for their project.
  • Smart Tips for Hiring the Best Contractor – Getting the job done right is more important than getting the lowest price, as the lowest price sometimes costs more because of the need to fix what went wrong the first time.
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