What is the Best Investment to Increase the Value of Your Home?
Ask most homeowners what remodeling project they believe will have the greatest ROI when they sell their home and the answers will probably have to do with living spaces — kitchens, bathrooms, even decks or attic bedrooms. But according a report from Remodeling Magazine, which has been tracking costs versus return on investment for common home improvement projects since 2002, in 2015 the best investment you can make in your home is … a new front door.
The “Cost vs Value” report shows both national averages and averages by region. Nationally, installing a replacement steel entry door yields an 101.8 % return. In the West North Central region, which includes St. Louis and Kansas City markets, the return is rated at 86 %, and in the Mountain region, which is all you folks in Denver, the return is closer to the national average at 91.3 %.
The best news is that , while not every house has the backyard for a deck, or the space for an additional room, or a kitchen or bathroom that would benefit from a makeover, this is a project that can benefit ANY home. If you’ve got your eye on a dream home, and want your current home to sell faster you can have this project completed in a lot less time than major projects like bathrooms, kitchens, and decks. And if you’re considering a home that is almost perfect and you’re already planning some reconstruction, adding a new entry door to the list just makes sense in the short and long term.
But if you’d rather invest in a “reconstructed” kitchen or bath, or a new deck don’t despair. The national average return for a major kitchen remodel is 67.8 % and for a bath remodel it’s listed at 70 %. And a new deck will serve you well too, with a return of 68 % for composite and 80.5 % for wood. So if you’re looking at investing the equity in your home into an upgraded living space those decisions allow you the immediate return of living space you love plus the increased equity over the long range.
–As always, whether you’re going to be shopping for a new home (after that gorgeous front door helps you sell yours, of course) or looking at the possibility of using the equity in your home to help you make some upgrades, our experienced loan officers are here to help!
About Tom Gillaspie
Raised in the construction business, Tom caught the “how-do-you-do-that” bug early on. He’s been a roofer, framer, remodeler, and is a licensed residential contractor. But mostly he loves to help people figure out how to do what they want to do to create spaces they’ll be proud to call home.