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You made a major investment when you purchased your home. So, when you’re thinking about renovations, consider all the ways to get the most value out of your home improvement project.
The Importance of ROI in Home Renovations
Whether you’re planning to sell your home in the near future or you will be in the home for decades to come, ROI, or Return-on-Investment, should be the guiding principle as you consider your renovation options. Of course you want to increase your home resale value, but comfort and lifestyle are important considerations too.
Prioritize Your Improvements
How can remodeling ROI help you? If you know the ROI of home different improvement projects, you can strategically prioritize which to work on first. This will save you time and avoid wasted effort.
If you plan to sell, knowing the ROI can help you narrow the list even more based on the market and resale value. If you don’t plan to sell right away, you can further narrow your list based on functionality, enjoyment, and even energy savings.
Maximize the Value of Your Renovation
How much a home improvement project costs is an important factor when determining the value of the work. However, it’s not the only thing. Here are even more ways that you can get the most value out of your renovation.
Real Estate Value
Using real estate value as a guide can lead you to strategic renovations, like high ROI projects such as a new front door and an updated kitchen. It’s also important because it takes the buyer into consideration as you add curb appeal, modernize your home, and perhaps increase living space. Keep this in mind, even if you aren’t looking to sell in the immediate future. Merging your lifestyle needs with ROI will maximize the value in your home down the road.
Warranties
Consider how warranties are another layer of value in your project. A renovation is a significant investment, and a warranty protects your investment. It gives you peace of mind once the work is finished should something go wrong.
When looking at different warranties, consider what it covers, how much it covers, and for how long. Will it transfer to the next homeowner? That’s another added element of real estate value too!
Quality Materials
Similarly to warranties, quality materials are another way to protect your investment—they’re more durable and will last longer. If you buy an inexpensive car that clearly has cheap, used replacement parts, you’re probably not going to be surprised when the car breaks down as you’re traveling down the road. The same rule applies to your home. Inexpensive materials will break down faster (and of course at the most inopportune time according to Murphy’s law!).
A buyer that sees quality, durable material gets the signal from you that your home is well-cared for—another way to increase real estate value.
Energy Efficiency
Making energy efficient upgrades like switching to a Smart thermostat, properly sealed windows and doors, and an updated HVAC system will help in lowering your utility bills and increase your personal comfort. Great Day Improvements can help you navigate the energy efficiency options.
Check your home to see if there are spots where you are energy inefficient. Can you feel air leaking under doors or windows? Can you clearly hear the outside noise when doors and windows are closed? These are just some of the indications that making energy efficient upgrades would be a smart choice for your home.
Prioritize Projects for ROI and Lifestyle
Now that you’ve considered the best home renovations and how to maximize them for ROI, what about you, the homeowner? You still want to live there and enjoy your home. This is when you consider the ROE or Return-On-Enjoyment. Balance the investment decision with how you use your home.
Curb appeal is a win-win for everyone. Who doesn’t enjoy coming home to a welcoming, lovely home? If you pull in your driveway, and you feel disappointment because you do not like the color on your home or the shrubs along the front walk, that’s a sign that curb appeal is a good place to start.
Perhaps your family size is growing and additional living space makes sense for you. Yes, the ROI is on the low end, but the ROE will be high. GDI can help you increase your living space with a beautiful sunroom to enjoy. Talk to one our of consultants today, to get started.
Mistakes That Can Hurt Your Renovation ROI
We all want to get the most for our money, but sometimes mistakes are made when trying to remodel our homes. Try to avoid these common mistakes that can affect the value of your home renovation.
Make Bold Choices Thoughtfully
The style of your home is a way to express your personality and make a house that could be for anyone into a place that feels like home. Just remember that home renovations are a bit more of an investment than a new shirt. Following niche or trending designs could end up making your home feel quickly outdated or difficult to sell. Be you, but keep the big picture in mind.
Skipping Permits & Inspections
Not having the right permit can cost you time and money when it comes to inspections. The work may have to start over from the beginning or stop all together. If somehow, you’re able to build your project and do not get it inspected, you could run into trouble when trying to sell your house. It’s always best to do your research ahead of time and do your renovation by the book.
Underestimating the Final Cost
Unfortunately, this happens quite often. Going over budget hurts your ROI because it forces you to add more money to your original investment. This can ultimately lower your ROI. Get detailed quotes before the work begins and build in a contingency for any unforeseen issues that could cause a budget to spill over. Include this contingency in your ROI projections.
Prioritizing Low ROI Projects
If Return on Enjoyment isn’t a priority, then it’s a good idea to target the higher ROI projects before tackling any low ROI projects.
Great Day Improvements Offers Long Term Value
At Great Day Improvements, we want to help you from start to finish—to not only simplify the renovation process for you, but also to offer services from quality, reliable experts you can trust.
At Great Day, we offer:
- Curb appeal projects: garage door replacements, steel door replacements, etc.
- Energy efficient products: windows, doors, siding.
- Kitchen and bathroom: we offer midrange and full remodel to suit your needs.
- Outdoor living spaces: sunrooms, patio enclosures, decks.
Get started today with a trusted remodeling partner and maximize your home renovation ROI.
