Home Renovation Costs: Getting the Best Bang for Your Buck

Renovations can help improve comfort and functionality, make your home market ready, and increase its overall value. However, some home renovation costs and projects will provide a higher return on investment (ROI) than others. Use this quick guide to learn how to add value to your home with the right renovations.

Improve the Entryway 

Putting in a new front door provides an extremely high ROI, with almost all of the cost of the new door converting into value for your home. Purchase a door that complements your house’s architectural style and will increase visual appeal. If the door is still in great shape, consider sanding and repainting it instead. Bright colors are an easy way to add visual interest, but monochromatic palettes are popular and effective as well.

Updated Kitchen and Bathrooms

Minor kitchen remodels are more cost-effective than many people realize. In fact, a potential buyer visiting your home may assume that they will have to invest tens of thousands of dollars to renovate an outdated kitchen. As a result, their perceived value of your home may be lower than your asking price to accommodate any repairs deemed necessary. Instead, make minor upgrades yourself with new countertops, paint, fixtures, and cabinet hardware.

Convert Rooms Rather Than Adding On

You might think that adding a new room to your property is a foolproof way to add value. In reality, the home renovation costs for add-ons often have a lower ROI than converting an existing space. Ideas include:

• Converting an attic into a bedroom or other useable space
• Building a back deck or other outdoor entertainment area
• Finishing the basement and partitioning off a room
• Closing off a bathroom from the hallway to create a bedroom suite

Plus, most conversion projects are much cheaper than large-scale renovations that involve extending your house’s foundation or roof. Increasing usable space may be easier and more cost-effective than you think!

Increase Energy Efficiency

Improving your property’s energy efficiency can help add financial worth while reducing your energy consumption costs each month. Consider projects that swap siding, windows, major appliances, and insulation for more energy-efficient models. You should also examine your heating and air-conditioning (HVAC) system. Many newer systems offer significant savings over their older counterparts.

Learning how to add value to your home is not the only reason to pursue home renovations. In fact, most energy-efficient upgrades will eventually pay for themselves. Plus, these upgrades and other improvements can help increase the comfort and functionality of your property.