In the ever-evolving real estate landscape, the promise of selling your home for more than you bought it is a constant. However, the reality of inflation means the return on investment may not be as substantial as one might think. Picture this: you bought a home in 1998 for $140,000. Fast forward to 2021, you need to sell it for $227,501 to break even, considering a 62.5% inflation rate.
While home improvements are a strategic avenue to achieve a favorable return, not all endeavors guarantee a significant recoup of investment. Many individuals invest heavily in improvements without reaping the desired returns. Yet, not all hope is lost.
Beyond enhancing your home’s resale value, certain improvements are essential for your enjoyment of the property. The key to maximizing your return is strategically selecting home improvements that balance a high return on investment (ROI) with your needs.
Let’s delve into a closer examination of the potential returns from some of the most common and promising home improvements.
Hardwood flooring can have a stellar impact on your home’s resale value. The National Association of Realtors 2019 Remodeling Impact Report reveals that refinishing hardwood floors recoups 100% of your investment while installing new hardwood flooring boasts an impressive 106% ROI.
While the initial cost of replacing your roof might be substantial, the long-term benefits make it a wise investment. According to NAR, the average roof replacement yields an outstanding 107% rate of return, particularly for houses 10-15 years old.
Manufactured Stone Veneer Siding
The trend of stone accents in home design is rising, and investing in manufactured stone veneer siding is a lucrative choice. The 2020 Cost vs. Value Mountain Region Report indicates that, on average, installing stone veneer siding recoups 100% of the investment.
Garage Door Replacement
The garage door is a prominent feature of any home. Upgrading it enhances your property’s curb appeal and improves efficiency and security. According to the Cost vs. Value Report, garage door replacements yield an impressive 96.1% ROI.
Kitchens play a pivotal role in home appeal. With styles and appliances evolving, a dated kitchen can impact your selling prospects. The Cost vs. Value Report suggests a 79.4% average rate of return for minor kitchen remodels in the mountain real estate region.
Enhancing curb appeal and bolstering durability, siding replacement is a wise investment. On average, fiber-cement siding boasts a 78.6% rate of return, while vinyl siding isn’t far behind with a 74.4% rate of return.
An outdoor deck is an instant value-add, providing the illusion of more square footage and offering additional living space. Staging the deck with quality furniture can seal the deal, with a deck addition typically recouping 70.6% of your investment.
Curb Appeal Counts
If you can’t facilitate major renovations, focusing on curb appeal is a cost-effective strategy. According to NAR, simple tasks like lawn maintenance, tree trimming, and a tidy exterior can yield a 100% return on investment.
These Tips Will Help You Sell Your Colorado Home Faster
In the Colorado real estate market, making home improvements is essential for personal satisfaction and achieving a higher resale price.
If you’re contemplating home improvements and feel overwhelmed, consider starting with those that enhance your home’s curb appeal, durability, and security. These features are especially attractive to potential buyers.
As always, it pays to seek recommendations for reputable home improvement professionals from friends, family, and your Colorado real estate agent.