When it comes to fixing up a home, how does a homeowner ensure they’re investing in the projects with the most upside that will attract buyers?
The key is to know which upgrades increase home value when the time comes to sell. Utilizing market research and real estate agent guidance, we’ve compiled the top home improvement projects to give any investor the most bang for their buck.
Price Range: $13,000 – $38,000
Cost Compensation at Resale: 81%
The kitchen is the heart of the home. It’s where families gather for meals, entertainment and now serves as an impromptu workspace for many; hence why it’s the most popular remodeling project out there with the greatest dividends. Homeowners have infinite space and components to play with when updating a kitchen. This includes swapping outdated appliances for new stainless steel appliances, re-facing cabinets, updating countertops and replacing the floor.
However, you don’t have to break the bank on a new kitchen to maximize ROI. A smaller project such as painting the walls, installing a tile backsplash and upgrading the sink can run between $10,000 to $15,000 — with the homeowner recouping 81 percent of the costs in resale value.
New Garage Door
Price Range: $600 – $1,500
Cost Compensation at Resale: 98%
So, replacing a garage door is probably the last thought on the minds of homeowners, but it adds to a home’s curb appeal, value and ROI. The best garage doors available today are constructed of steel, wood composites and aluminum, featuring energy-saving glazing and insulation. It’s money well spent that’ll help increase a home’s value.
Price Range: $10,000 – $15,000
Cost Compensation at Resale: 102%
Like the kitchen, a bathroom is a place we spend a lot of our home time. And it’s the spot of the house that experiences the most wear and tear, meaning a bathroom remodel may be more of a necessity rather than a luxury. Replace old floors with ceramic or stone tile, install a new toilet and tub and add designer sinks and faucets.
If it’s not feasible for a budget, minor updates like recaulking the tub or replacing the vanity lights can improve the home’s bathroom and overall value.
Price Range: $5,000 – $10,000
Cost Compensation at Resale: 105%
A new roof may not come with the allure felt with a kitchen or bathroom renovation, but can be the single most important home improvement project to boost a home’s value, especially if we’re talking about a roof that’s 20 to 25 years old. On average, replacing a roof will vary depending on the location, quality of materials used and the home’s size. It’s a small price to pay as a homeowner can typically recover all of the total costs and then some at resale.
Home improvement projects can greatly enhance the look and feel of a house while increasing its value. But, by the same token, it can be quite costly. That’s where the good news comes in about a loan opportunity buyers should know about before undertaking a fixer-upper.
Indeed, you’re familiar with the FHA 203k Renovation Loan and how a homeowner can bundle the cost of a home with repairs, renovations and improvements into one mortgage. But, did you know this loan offers a significant upswing?
FHA 203k Loans provide an unimaginable opportunity for a buyer who otherwise would not take a chance on a home that may have some imperfections. They are able to create a vision to see the full potential of what a property can be with a blank canvas.
As home flipping values continue to soar, now’s the time to talk about an FHA 203k loan for that next home improvement project.
Home flipping rates are at a 14-year high, with the Mahoning Valley listed as one of the country’s best housing markets for home flippers. That’s according to the latest house flipping report from ATTOM Data Solutions. Out of 151 metropolitan statistical areas analyzed, Youngstown, Ohio ranked fourth in the U.S. with a 92 percent increase in profit margins for single-family homes and condominiums flipped and sold in Q2 of 2020. Continue reading