ROI, which means “return on investment” is a way to measure an investment. When it comes to owning a home, ROI refers to the increase in the value of your home versus its value when you purchased it.
It’s important to understand ROI because different kinds of renovations will result in higher or lower ROIs. This all depends on housing market trends as well as the longevity of your home.
Paying attention to ROI will help you make informed decisions about home improvements so that you invest your money into projects that will yield a return when you sell your home.
So when it comes to ROI, look at how the expenses of buying and improving a house will pay off should you sell or refinance your home.
Some renovations will make your home more marketable while others have little effect on resale value.
Here are the best renovations you can invest in to increase your home’s ROI:
When it comes to remodeling your kitchen, it’s important to invest the right amount of time and money into the project.
Start by looking at what needs to be repaired or updated. Are the cupboards dated? Is the countertop damaged?
If you are prepared for a larger renovation, consider knocking out a wall to open up the space.
Just like your kitchen, your bathroom can be renovated on a scale from minor to major.
Look at your bathroom and figure out its strengths and weaknesses. Is the tub modern and in good shape? Is the vanity old and in need of an upgrade?
You can take your renovation another step further by expanding the bathroom into a neighboring room to create more space.
Sometimes home renovations that will give you the best ROI don’t have to be major jobs!
Simply adding a coat of fresh paint to your home is a low investment with minimal effort that can increase its value.
However, it’s important that the job is done right and that the palette is appealing to potential buyers so you consider hiring a professional painter.
They can help you determine a suitable palette as well as repair minor damage before applying high-quality paint.
When it comes to the interior elements of your home, your floors take on quite a bit of wear and tear. If you want to boost the ROI of your home, you need to replace aging and damaged flooring.
It’s important to consider what type of flooring you want and its location. For example, tiling is best suited for a bathroom while laminate wood floors are great in a common area such as the living room.
A professional installer can help you choose the best flooring type for your home and ensure that it is properly installed.
Homebuyers love space and adding a room or two to your home is a good investment! In fact, every 1,000 square feet added to a home can boost the sale price by up to 30%.
When it comes to additions, think of sunrooms, extra bathrooms, attic bedrooms, and even home offices.
Just be careful not to add too much space that you price your house out of the neighborhood. You want to be at the upper end of the market but not beyond it.
If your home has a basement, consider remodeling it into a liveable space! You can really make your basement a strong selling point of your home by creating beautiful living quarters.
You can use this space to add an extra bedroom, a family room, and even a finished laundry room.
Again, homebuyers love space and you don’t always have to add it to increase your ROI.
Roof, Window, and Foundation
When potential homebuyers are looking at a house, one of the most important things they consider is the condition of the home’s “bones”.
A good roof and newer windows will provide both energy efficiency as well as ensure that the house will not leak and take on water. A solid foundation will also indicate that flooding will not be a future issue.
In order to increase your home’s ROI, consider replacing older windows with vinyl ones, installing a new roof, and waterproofing the foundation.
First impressions mean a lot in the world of real estate!
Your home could have the most beautiful interior but, if the exterior doesn’t catch the homebuyer’s eye, they could easily pass on checking out the rest of the house.
Increasing your home’s curb appeal can be as easy as replacing or painting your front door. You can also look at replacing your siding.
As with most renovations that will give you the best ROI, look at the current state of your home and focus on areas that are in need of repair or an update.
Speaking of curb appeal, how is your yard looking? Homebuyers love visually appealing outdoor spaces.
Thankfully, there’s no need to overdo it with landscaping! Just make sure your yard has clean lines and lush grass.
You can further add to the appeal by planting gardens and creating a relaxing outdoor space.
Decks, Patios, and Porches
If you have room outside of your home, consider adding a deck, patio, or porch to improve your outdoor living space.
Again, homebuyers love space and these additions can easily be done to the exterior of your house.
Something as simple as a beautiful and functional deck can add value to your home!
Get a Quote Today!
Ridgeline Improvements is dedicated to providing every Edmonton homeowner with exceptional quality, reliable service, and affordable prices.
Our team of professional contractors starts every renovation project by getting to know you and the vision you have for your home.
Let us bring your dream to life and increase the ROI on your most precious investment. Request a quote today!