Maximizing Your Home's Value: Key Renovations to Consider for ROI
Homeowners are increasingly opting to renovate their current homes rather than move. A recent survey by Discover Home Loans found that 55% of American homeowners prefer to stay put and make improvements. For homeowners in Sacramento, this trend highlights the importance of strategic renovations that can significantly enhance future property value.
We recently renovated our home and learned so much in the process. (Check out the video below!) Here are a few takeaways that may help you in your home improvement projects.
Exterior Upgrades Lead the Way
When considering home improvements, it's a good idea to focus on projects that offer the highest return on investment (ROI). Historically, exterior upgrades have been the most effective at increasing home sale prices. Exterior projects boost curb appeal and may improve a building's resilience to weather—key factors that reassure buyers about a home's condition.
1. Garage Door Replacement
Average Cost: $4,513 Average Resale Value: $8,751 Cost Recouped: 193.9%
A garage door replacement is a top contender for maximizing ROI, nearly doubling in value in 2024. This simple upgrade can enhance curb appeal and deliver significant financial returns.
2. Entry Door Replacement (Steel)
Average Cost: $2,355 Average Resale Value: $4,430 Cost Recouped: 188.1%
A new steel entry door offers both aesthetic and practical benefits. These doors improve energy efficiency by fitting tightly into door frames, reducing drafts and lowering energy costs.
3. Manufactured Stone Veneer
Average Cost: $11,287 Average Resale Value: $17,291 Cost Recouped: 153.2%
Replacing vinyl siding with stone veneer can give your home a timeless, elegant appearance. This project enhances curb appeal and delivers a substantial return on investment.
Interior Enhancements with Strong Returns
While exterior upgrades lead the way, select interior renovations, particularly those that focus on enhancing functionality and modernizing spaces, can also provide excellent returns.
4. Minor Kitchen Remodel (Midrange)
Average Cost: $27,492 Average Resale Value: $26,406 Cost Recouped: 96.1%
A minor kitchen remodel can nearly pay for itself, focusing on cosmetic updates such as new countertops, cabinet refacing, and energy-efficient appliances. For those considering major renovations, keeping the scope modest to maximize ROI is wise.
5. Deck Additions (Wood)
Average Cost: $17,615 Average Resale Value: $14,596 Cost Recouped: 82.9%
A wooden deck addition remains a popular choice for expanding living spaces. This outdoor upgrade enhances the home's functionality and appeals to buyers looking for versatile spaces.
Making Informed Decisions
These renovations offer a strategic approach for Sacramento homeowners looking to boost their home's value. Whether you’re preparing to sell or simply want to enhance your living experience, focusing on projects with high returns can make all the difference in the future.
Don't hesitate to contact me for personalized advice tailored to your specific property and neighborhood. I'm here to help you make the best investment decisions for your home.
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