When my husband and I first moved into our home, I was ready to remodel our drab 1950’s home to a chic and modern bungalow. I had big dreams – updated kitchen cabinets and counter tops, an open floor plan and a bathroom remodel that would offer a spa-like experience.
Here’s what actually happened. Within the first few months of living in our home, our basement, which had never been known to get standing water, was completely flooded. I’m talking inches of standing water covering our entire basement floor. While my dog thought we were the world’s best owners for getting him a giant swimming pool, my husband and I frantically searched for options to get our basement waterproofed. $10,000 later, our basement now gets minimal water but that ate a large portion of the budget for the big dreams I had envisioned for our home.
Here's picture to help you better visualize my (adorable) dog splashing around our basement.
I wondered if renovations such as waterproofing a basement, getting a new furnace and air, or paying for a new roof were a better return on investment compared to updating the aesthetics of a home when it comes to resale. They are! That’s because it’s hard to get a buyer interested in a home if it has water damage in the basement or a roof that’s leaking. While an updated bathroom or kitchen is a plus, what buyers really want is a home with good bones. There are plenty of things to worry about when a buyer is looking at a home, and they don’t want to purchase with an expectation to pay for a new roof and water damage to their ceilings.
That’s not to say that aesthetic remodels aren’t worth the expense, but buyers much prefer to not have to worry about updating the home essentials. Once all of your essentials are in good, or at least decent condition, be strategic in considering your home remodel projects. Keep in mind that typically the lower the cost of the remodel, the higher the return on investment. So even though my kitchen remodel was going to make our house visually more appealing, it wasn’t the best way to increase the value of our home.
So, what’s the home renovation that gives you the highest return on investment? Attic insulation. It costs around $1,350 and adds around $1,450. It’s not nearly as exciting or satisfying as other home projects, but it’s the best bang for your buck with around 108% return. Some of the other top renovations include replacing your entry door with a steel door, replacing your garage door or a minor kitchen remodel.
As you think about renovating your home, remember these two important tips:
1.Consider the projects that cost the least because they bring the highest ROI.
2.Make sure your home essentials are up to par before you take on any other renovations.
Lastly, not all home renovations are done with the sole purpose to increase ROI, some are done to make your house a home. If you’re looking for ways to renovate your living space, check out these ideas on how to Spice Up Your Kitchen as well as some great ideas for the rest of the rooms in your home on our Pinterest page.
What are some home renovation projects you’ve been thinking about tackling lately? Let us know, we like hearing from you.