BMI Federal Credit Union
5 Home Improvement Projects With High Long-Term Returns
Putting Money Back in Your Pocket
If you’ve ever thought about renovating your home or possibly selling your home in the future, one of the first things that comes to mind is how much money you’ll be able to walk away with after the sale. While there are several factors that can influence your home’s resale value such as location, size and condition, any renovations you make can also impact the resale value. According to the 2017 Cost v. Value Report, these are the five midrange renovations that would leave you with the most money in your pocket:
- Attic Insulation (fiberglass). Many people would think that a new addition or completely remodeled kitchen would have prospective homebuyers seeing stars but, shockingly, this was not the case. The Cost v. Value Report actually shows it was an insulated attic that would leave you with the most bang for your buck. Insulation keeps your house cool in the summer and warm in the winter, which says lower energy bills for you and a prospective homebuyer.
Job Cost: $1,343
Resale Value: $1,446
Cost Recouped: 107.7%
- Entry Door Replacement (steel). Replacing your entry door is always a good investment because it can make your house more attractive and appealing to the prospective homebuyer. But experts say that if you’re going to replace your front door, it’s better to go with steel than wood. Not only do steel doors add an extra level of security but they also have an insulated core that means less drafts and lower energy bills.
Job Cost: $1,413
Resale Value: $1,282
Cost Recouped: 90.7%
- Manufactured Stone Veneer. Next to a new front door, manufactured stone veneer is the top exterior home remodel project you can do to increase your home’s rate of interest. Aside from being significantly cheaper than real stone, manufactured stone veneer is easier to install, looks exactly like natural stone and comes in a variety of styles and colors. According to nativecustomstone.com the only con manufactured stone veneer has working against it is that it isn’t “natural” stone – but with proper maintenance and upkeep, no one will be able to tell the difference.
Job Cost: $7,851
Resale Value: $7,019
Cost Recouped: 89.4%
- Minor Kitchen Remodel. A minor kitchen remodel requires less work and money than a major kitchen remodel but can oftentimes yield a greater result. According to nerdwallet.com, some major kitchen remodels can cost upwards of six figures and, while they will increase the value of your home, you may not come close to making back the money you put into the remodel. On the other hand, the average cost of a minor kitchen remodel is about $20,000 and you’ll come much closer to making that money back when it comes time to sell your home. And the proof is in the numbers, according to the Cost v. Value Report a minor kitchen remodel will allow you to recoup 80.2% of the cost, while a major kitchen remodel will only recoup 65.3%.
Job Cost: $20,830
Resale Value: $16,699
Cost Recouped: 80.2%
- Garage Door Replacement. Rounding out the list is replacing an outdated garage door. Much like a new front door or the addition of manufactured stone veneer, a new garage door can instantly change the look of your home, making it more attractive to a prospective homebuyer. Plus, with a garage door replacement being one of the least expensive renovations you can make, it’s a good option if you’re hoping to get money back.
Job Cost: $1,749
Resale Value: $1,345
Cost Recouped: 76.9%