Building Equity with Home Renovations
What’s on your to-do list this summer? If you have a home improvement project in the works, it could actually pay off in the long run.
For example, if your kitchen has appliances and cabinets from the 1980s, you could find that your home's value is much lower than one with a recently upgraded kitchen. Plus, renovating your home could be a better investment than moving and buying a new one. Often times, it is cheaper and easier to add an addition or renovate instead of purchasing a brand new home.
Want to know what projects are likely to pay off? The 2022 Cost vs. Value Report by Remodeling Magazine ranked the cost and resale value of various home remodeling projects. While cost is something to keep in mind, it’s important to know that you could gain back a significant portion of the money spent by adding to your home’s equity.
Here are the top four projects:
- Garage door replacement | Cost recovered: 93.3%. Your garage door often makes up a large portion of your home’s exterior appearance. Garage doors are also frequently used for entering the home. Updating your garage door has proven to be a good investment. Plus, a functional garage door could help you save money on energy bills.
- Manufactured Stone Veneer | Cost recovered: 91.4%. Exterior projects often hold their value well because "curb appeal" and "first impressions" hold a lot of weight in real estate. If the exterior of the house is in disarray, potential buyers immediately start to downgrade what they are willing to pay for the home. Manufactured stone veneer siding can enhance your home’s appearance and is long-lasting and durable. Refresh your exterior by replacing vinyl siding and installing some manufactured stone veneer.
- Minor Kitchen Remodel | Cost recovered: 71.2%. Compete with other homes on the market without breaking the bank by giving your kitchen a minor facelift. Examples include replacing your cabinet and drawer fronts (including new hardware), cooktop/oven range and slide-in refrigerator with new energy-efficient models. You could also replace laminate countertops, install a mid-priced sink and faucet, add new resilient flooring and paint your kitchen walls, trim and ceiling.
- Fiber-Cement Siding Replacement | Cost recovered: 68.3%. Adding fiber-cement siding can also help upgrade the exterior of your home. Fiber-cement siding is extremely durable, weather resistant, relatively affordable and versatile.
Other renovations yielding a high percentage of costs recovered include:
- Vinyl Window Replacement: 67.5%
- Vinyl Siding Replacement: 67.2%
- Wood Window Replacement: 66.3%
- Wood Deck Addition 64.8%
- Entry Steel Door Replacement 63.8%
The data shown is based on a national average but could differ depending on your specific home and location. At the local level, it is best to obtain construction cost estimates from reputable local remodelers and talk with an experienced Realtor.
To see how data in your region stacks up, visit https://www.remodeling.hw.net/cost-vs-value/2022/.
Thinking about remodeling? Contact your local loan officer to learn more about refinancing or renovation loans.