These days, television is filled with home improvement shows featuring remodeling and decorating on both a large and small scale. Everyone is talking about installing new hardwood floors, knocking down walls and replacing old pipes. It all sounds great, but most people don’t have the luxury of renovating their entire home all at once. And, the truth is that this approach to home improvement isn’t always the smartest.
Whether you’ve recently purchased your home or you’re contemplating a move, it’s important to weigh the renovations you want to do with their potential for return on investment (ROI). What does that mean? The ROI is the amount of value any given renovation or repair will add to the overall value of your home — either in equity or when you decide to sell it.
While some renovations can — and should — be done simply because they are meaningful to you and your family, if you have multiple projects to tackle, you should prioritize them to make the most of your time and money.
Reasons to Invest in Home Improvement
Homeowners tackle improvement projects for many different reasons. Some projects have short-term benefits while you won’t see a return on others until you sell the house. Here are some of the most common reasons for investing in home improvement.
1. Maximize Curb Appeal
A home’s curb appeal is how it looks on the outside. There are a lot of elements that play into curb appeal, but generally, the three things that are the most important to consider when you’re improving your home’s curb appeal are the front door, the exterior materials such as siding and the landscaping that surround a home. This can also include your garage door if your garage is attached to your house and visible from the street.
Many people wouldn’t think twice about the appearance of their front door or how many bushes they have in the yard. But when it comes to a home’s value, first impressions can make or break the sale of a home. Not only that but even if a potential buyer is willing to give a home with less-than-desirable curb appeal a shot, they may not be willing to pay as much for it.
Of course, one of the more immediate benefits of curb appeal is that you can enjoy the beauty of your home’s exterior every time you drive up after a long day of work or on the weekends relaxing on the porch with a glass of lemonade. There’s nothing like pulling into your driveway and immediately relaxing as you take in beautiful bushes, high-quality siding and a well-chosen paint color.
2. Improve Resale Value
Curb appeal is just one way to improve your home’s appeal to potential buyers if you’re ready to put it on the market. However, you shouldn’t wait to think about improving your home’s resale value until the For Sale sign is in the yard — by then it’s probably too late. The perfect time to make improvements to your home is on an ongoing or as-needed basis. After all, if you’re going to put money into renovations, you should be able to enjoy them yourself.
While any improvement you make to your home will add what’s called “intrinsic value,” which is a personal value you place on that specific feature or improvement, not all upgrades will add monetary value to your home. As you make changes and improvements, do your research and make sure you know which projects are more likely to yield results when you go to sell your home.
Many homeowners get confused by this because they mistakenly believe that their own personal preferences reflect the preferences of other people. For example, many people believe that adding a pool to their backyard is a great way to improve a home’s resale value. However, this just isn’t true.
Yes, there are other people out there who would like to own a home with a pool. But, for other potential buyers who may not want to deal with the upkeep or have the time to swim, it may be a burden and turn them away from your home’s potential. We aren’t saying avoid pools — if your family will enjoy it, then go for it. Just make sure you have realistic expectations when it comes to how different projects affect the way other people see your home.
3. Improve Efficiency
Improving your home’s overall energy efficiency can give you both short- and long-term benefits. In the short term, it will reduce your monthly energy costs. When you improve your home’s energy efficiency by adding insulation or replacing old windows, you’ll also make your home more comfortable. After all, there’s nothing worse than freezing your way through winter because your windows are 50 years old.
Today’s home buyers are also more interested in eco-friendly home features. If you’ve put money into new windows, doors and insulation, you’ll definitely pique the interest of potential buyers. However, if you haven’t paid for upgraded windows, don’t worry just yet. There are some basic things you can do to improve your home’s energy efficiency in the short-term. Have your heater and HVAC serviced to make sure they’re running at optimal condition. Consider upgrading your thermostat, adding weather stripping around your windows and doors, improving your home’s insulation or even installing a new insulated garage door. Any of these options will be cheaper than new windows, but push down your home’s energy costs — all while making you more comfortable.
4. Build Equity
Equity is the market value of your home minus whatever you still owe on it. While you don’t have control over market values, you do have control over the value of your property. Think of it this way — having a mortgage is like having a savings account you can’t touch. That means it’s going to build up over time because you aren’t constantly tempted to take money out of it. If you are simultaneously paying down your mortgage while you make improvements to your home, over time, this will improve your home’s equity because its value will increase while the amount you owe will decrease.
This can be an especially valuable strategy for first-time home buyers and those who have purchased a home that needs a lot of repairs, however, it’s important to remember that building equity in a home is a long-term strategy for financial success. Only 10 percent of homes that have been owned for less than a year will have any significant equity attached to them. But, if you’re invested in staying in a house for several years and making improvements along the way, you’ll likely see some equity build up over time, assuming there aren’t any significant changes to the real estate market in your area.
Home Improvement Projects That Pay Off
As any homeowner can tell you, when it comes to home improvement projects, the work is never done. There’s always something that needs to be repaired, updated or replaced. How is a homeowner supposed to preserve their sanity and their bank account when there’s so much work to be done?
The key to a successful home improvement strategy is to prioritize. Figure out what’s important. Obviously, you need to make your home comfortable for you and your family now. There’s no reason to put off improvements that will significantly contribute to your overall comfort and happiness while you live in your home. But, once you’ve met your family’s needs, the best way to prioritize your projects is to look at those that will help you build equity into your home and ultimately get you the best ROI when you do put your house on the market in the future.
It’s also important to note that when you’re looking at the statistics on home improvement projects and their ROI, the percentages are based on the amount spent on the project. It’s important to understand national averages, as well as what’s common in your area, because these will ultimately impact your home’s own ROI.
1. New Garage Door
In 2018, REMODELING Magazine reported that replacing a garage door can net a homeowner a 98.3 percent ROI at a $2,000 cost. In some locations, homeowners who opted for a new upscale garage door even found themselves recouping more than 100 percent of their expenses. Why is a garage door such a big deal? Curb appeal is a big part of it. When a home has great curb appeal, it makes potential buyers more interested in what’s on the inside and more willing to pay what the home is worth. A beautiful garage door can be a great way to hint at a beautiful interior. Not only that, but a garage door is a relatively inexpensive home improvement to make, which makes it more feasible for many homeowners.
If you’re replacing your garage door, make sure you choose one whose design and price point are in keeping with your home. An upscale door is a beautiful feature to add to any home, but if you own a mid-century ranch, you probably ought to avoid a door that looks like it belongs on a Victorian carriage house. Consider working with an experienced garage door company to determine which door and price point will provide the most value and appeal for your home.
2. Siding
Giving the exterior of your home a fresh new look can spruce up curb appeal and add equity all at once. Yes, siding can be an investment, but it’s one worth making because it will give you a strong ROI when you go to sell your home. Vinyl siding has been found to have a 75 percent ROI at $10,000, with its fiber cement cousin cashing in at a whopping 83 percent ROI.
Not only does siding give you a high ROI when you go to sell a home, but you’ll save on maintenance costs over time. Vinyl siding doesn’t need to be painted, so as long as you choose a good quality product, it’s going to give your home a clean, fresh look for a long time. Fiber cement siding is more expensive up front, but one of its biggest benefits is that it has a high-quality appearance that can be appealing to a lot of people. Vinyl siding has come a long way and can make your home look very nice, but fiber cement siding adds an extra “something” that can be irresistible to buyers.
3. New Roof
No one wants to spend a rainy day getting cozy with their mop and wash buckets. But if you neglect your roof, that’s exactly what’s going to happen. The lifetime of a roof varies, depending on what it’s made of, but if your roof is approaching the 20-year mark, it may be time to start planning for a new one. The good news is that the average ROI on a new roof is 109 percent at a project cost of $8,150. No one is going to buy a leaky house, but buyers are willing to pay for a home that’s being protected by the elements.
While most roofs are designed to last 20 to 25 years, it can be challenging to figure out when it’s time for a new one, especially if you don’t know when the current roof was installed. With a little detective work, you can easily spot potential problems and then determine whether or not it’s time to call in a professional. Your home may be ready for a new roof if:
- Shingles are missing, misshapen or covered with moss.
- Your energy bills have gone up.
- You can see sunlight shining through into your attic.
- You find stains on your ceiling or walls.
4. Insulation
If you find yourself sweating profusely while your air conditioning is running or spending the winter wearing your parka and gloves indoors, it may be a good idea to improve your home’s insulation. Many homeowners often overlook this one because you can’t see insulation. But we guarantee it will make a difference in your home’s overall energy efficiency. Redoing or improving your home’s insulation will result in an average 76 percent ROI at $2,000. That’s appealing to potential buyers and, as the current homeowner, it’s guaranteed to immediately save you money on energy bills.
5. Flooring
If you’ve watched even just one home improvement show on TV, then you’ve heard the hype surrounding hardwood flooring. And with good reason. Hardwood floors are a widely appealing feature because it can make even a simple home look “high end.” It’s also easier to keep clean than carpet and, if you have family members with allergies, hardwood floors make it easier to keep allergens at bay and your loved ones comfortable.
Not only are hardwood floors widely viewed as one of the most practical flooring options on the market today, but their ROI for homeowners is huge. If your home has existing hardwood floors and you opt to have them refinished, you’ll likely see a 100 percent ROI when it comes time to sell. If you have old flooring replaced with new hardwood floors, you can expect somewhere around a 91 percent ROI. Flooring is a project that some homeowners tackle themselves, which can also save money in the short-term. Whether or not you should tackle a new floor on your own will depend on your budget and your abilities.
These five suggestions are some of the most highly recommended home improvements you can make if you’re looking to maximize your ROI when it comes time to sell. However, it’s certainly not a comprehensive list. In addition to these big-ticket items, homeowners should also consider replacing their front entry door, tackling mid-range kitchen remodeling projects, adding or updating a wooden deck, a two-story addition or a basement remodel. All of these projects have been found to average over a 70 percent ROI for homeowners.
Should I Hire a Contractor or Try to DIY?
While some of these home improvement projects are relatively straightforward, taking on projects can quickly become overwhelming, especially if you aren’t the next Bob Villa. Even projects that are less expensive can quickly add up and put a strain on your wallet if you aren’t careful. So what’s a homeowner to do?
Some projects will make more sense to tackle yourself. However, everyone has different skills and abilities. Not only that, but some projects should never be done on your own.
As a general rule of thumb, you should always hire a contractor if:
1. The Job Could Destroy Your Home
For example, if you have a leaking pipe and you attempt to repair it yourself, you could potentially make the leak worse, leading to serious water damage in your home. If you hire a plumber, they’re experienced and licensed, meaning they should be able to fix the problem without creating a bigger problem. And, even if they do make a mistake, they would be financially liable for it — not you.
2. The Job Requires a Permit
If your locality requires a permit to tackle the home improvement job you have in mind, then it’s best to call in a professional. This could include building an addition on to your home or dealing with anything linked to your home’s utility lines.
3. The Job Could Be Dangerous
Projects that involve electrical work, roofing or something with the potential to be hazardous to you. As a general rule of thumb, you should call in a professional for:
- Garage door installation and repair
- Structural repair, including drywall, foundation, roofing and anything that alters your home’s architecture
- Electrical and plumbing, including repair and replacement of wires and pipes or installing major fixtures like tubs
- Renovations, including new doors and windows or putting up or taking down walls
- Restoration, including clean up after water or fire damage
While there are home improvement projects that require a knowledgeable professional, there are plenty of things a homeowner can do on their own to improve their property. Not only that, but they don’t have to be things you already know how to do. You can watch videos online, talk to a knowledgeable friend or family member or visit your local hardware store for tips and training. The amount of work you can take on will certainly depend on your time and abilities, but in general, homeowners can tackle projects including:
- Painting, sealing and refinishing, including indoor and outdoor paint, refinishing decks and other wood finishes
- Landscaping, including planting and maintaining grass, shrubs, flowers and tree trimming
- Outdoor upkeep, including window washing, cleaning out gutters and cleaning debris off of the roof and yard
- Installation and maintenance of sprinklers and drains, which keep your landscaping alive and direct excess water away from your foundation
Owning a home is about having a warm, comfortable place to make memories with your loved ones. Nothing beats the excitement of updating and improving the place you raise your children, celebrate holidays and come home to after a hard day of work. Being a homeowner isn’t always easy and, if you lose sight of what’s important, you may become more focused on the work and money than what really matters.
At Best Overhead Door, our goal is to take the stress out of garage doors. We are your one-stop shop for garage door repairs and installation. Serving the Portland metro area, as well as Vancouver, we’re dedicated to walking with you through the entire process of purchasing a garage door — from choosing the design and color that best suits your home all the way to installation and maintenance.
A high-quality, reasonably priced garage door is one of the best investments a homeowner can make. If you’re ready to make this investment, we’re ready to help. Request an estimate or contact us today for more information.
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