As the summer season approaches, many homeowners get the “itch” to kick off home improvement projects. Before you pick paint colors and start tearing out flooring, perhaps you should take into consideration which home improvement projects offer the best resale value to ensure your investment will yield you the most money in the long run. Many home improvement projects are done for the benefit of the homeowner, but always keeping resale value in the back of your mind can result in maximum seller profits when that time comes.
According to the Remodeling Cost vs. Value 2019 Report (https://www.remodeling.hw.net/cost-vs-value/2019/) the top ten home improvements providing the largest resale value include:
- Replacing your garage door with an upscale option results in 98% of the initial cost being recouped at sale
- Installing manufacturing stone veneer to the exterior of your home could yield a 96% return on your investment
- Completing a minor kitchen remodel not only adds to the cosmetic appeal of your home, but it can also pay back up to 80% when it is time to sell your property
- Replacing exterior siding results in 75% of the expense being recouped
- Adding a wood deck not only creates a beautiful gathering space to enjoy the amazing outdoors of Meeker, but it can pay you up to 74% of your construction expense
- Vinyl window replacement can not only improve your energy efficiency, but you can possibly see 71% of that expense coming back to you when you sell (plus, there may be tax credits available for energy efficiency upgrades – contact Mountain Valley Bank to see which program you may be eligible for and to take advantage of the tax or grant incentives for homeowners!)
- Not only will an impressive grand entrance with a beautiful fiberglass door make an instant improvement in your home’s curb appeal, it is the seventh highest project yielding 71% return on your investment
- Wood window replacement is a higher end window option, and just like vinyl window replacement, this project can improve energy efficiency and still see 67% of your investment coming back to you when you sell
- Adding a composite deck provides an easy, low maintenance deck option, and home sellers typically see 66% of that expense returned to them in their seller proceeds
- The tenth best home improvement project, when considering resale value, is a roof replacement with asphalt shingles. The warranty on asphalt shingles is long lasting, and a project like this reassures potential buyers that your home is a sound investment as they will not have to take on that project for years to come. This project typically produces a 65% return on investment, and a metal roof produces a 60% return of investment.
So, now that you know which home improvement projects will offer you the most return on your investment, how do homeowners go about paying for the improvements? One answer could be spending down savings that you have been diligently working to build. Another option is using bank resources, like a home equity line of credit, or refinancing your home to access the equity you have built and get cash out.
To learn more about home improvement return on investment, or to talk through financial options to achieve your dreams, stop by and visit with one of our knowledgeable lenders at any of our Mountain Valley Bank locations in Meeker, Walden, Hayden or Steamboat Springs. We are here to help you achieve your goals!