In 2018 alone, homeowners spent a total of $394 billion on home improvements to maintain or upgrade their home in an effort to increase the value of their investment. Let's take a closer look at home improvement projects and which jobs are likely to add the most value to your home .
What are the most popular home improvement projects?
If you are interested in keeping the same floor plan, you can remodel a kitchen for around $15,000 and get a similar return in terms of boosting your home's value. Buyers are likely to spend more if you have updated kitchen appliances and stone countertops. Even a small DIY project like sanding and repainting your cabinets or installing new window treatments can boost the value of your kitchen.
The bathroom is another common remodeling project with about 81% of home improvement jobs focusing on that room alone. Installing a new tub, changing the flooring, and purchasing a new toilet, sink and fixtures can cost around $10,500. This type of complete bathroom remodel can result in a return on investment (ROI)* of 102% when you go to sell your home.
Painting is another relatively inexpensive way to upgrade your home, since you can typically cover 400 square feet with a gallon of paint. Painting the outside of your home and choosing a bold color for your front door is an easy way to increase your curb appeal. Focusing on curb appeal can help you sell your home fast and get the asking price you desire. The following exterior upgrades can make a big difference:
1. Siding - typically has an ROI of 103%.
2. Wood deck or patio - has an average ROI of 83%. A wood deck or patio will increase your curb appeal while providing you with a convenient and functional outdoor space.
3. Landscaping - will improve your curb appeal, especially if you introduce some eye-catching colors and a few plants will make your front entry stand out.
How to prioritize home improvement projects
Although maintaining your home is usually top of mind, most likely you will not be able to take on every desired improvement all at once and will need to prioritize by importance. If you are interested in selling your home, these home improvement projects will yield the best return:
1. Kitchen - You can expect an ROI of 98% for a minor kitchen remodel and 91% for a major remodel with a new floor plan.
2. Bathroom - A major bathroom remodel has an ROI of 93%.
3. Basement - A basement remodel will create a new living space and yield an ROI of 90%. If you don't have a basement, you can turn your attic into an additional bedroom and expect an ROI of 93%.
4. Exterior - Painting the exterior of your home is an inexpensive project that yields an ROI of 95%. If you want to take on something a bit larger, you can install stone veneer on the outside of your home which typically results in an ROI of 97%.
5. Garage - A new garage door is a great way to add curb appeal to your home with a high ROI.
6. Roof - Installing a new has an average ROI is 68% and is important to maintain not only safety reasons but as well a damaged roof can be a deal-breaker for a potential buyer.
Be sure to consider cost and value when comparing different home improvement projects and prioritize upgrades which will appeal to a large group of buyers.
Although you can expect a great return on those common remodeling projects, upfront costs can be an obstacle. Whether you want to maintain the value of your home or need to spruce it up to get your asking price, Dividend Finance offers convenient financing options for your home improvement projects. Visit our website or talk with your contractor about using Dividend to finance your next home improvement project!
*ROI is based off of how much of the investment you are estimated to recoup when you sell the home.