With so much attention paid to the housing market these days, you might be thinking about sprucing up your home. Renovation projects can be expensive, of course. On average, homeowners spent about $15,000 in 2020, with homeowners renovating about three rooms at a time. More than 50% of the renovations concerned either the kitchen or the bathroom.
If you want to know how to increase the value of a house, keep in mind that some projects will pay more than others. Your return on investment may depend on the type of changes you make, your location, and the competitiveness of the housing market. Here’s what you need to know.
Key points to remember
- Homeowners spend an average of $15,000 on home improvement projects.
- Very few projects will reimburse 100% of your costs when you sell the house.
- However, some renovations can improve your home’s appeal to buyers, helping it sell faster.
- Renovations can also make your home more energy efficient, save you money, and simply make your home better.
How to increase the value of your home for $15,000 or less
If you want to make a relatively modest investment in renovations while recouping some of that money by increasing the value of your home, here are seven projects to consider. The first four are based on Remodeling the new “2022 Cost vs. Value Report” of the magazine, the last three on the “2022 Remodeling Impact Report” of the National Association of Realtors (NAR).
1. Replace your garage door
One of the most effective ways to improve the curb appeal of your home is to replace your existing garage door with a modern steel door. According Remodeling “2022 Cost vs. Magazine’s Value Report, the new garage door will cost $4,041 on average and recoup 93.3% of its value, or $3,769.
2. Add stone veneer
If the facade of your home has old brick or nondescript siding, consider installing a manufactured stone veneer over part of it. It will make the house look grander and you will probably recoup around 91% of its cost when you sell the house. A manufactured stone veneer costs an average of $11,066.
3. Upgrade the front door
If you have an older front door, it may make your home look dull and it may not be as secure or low consumption like today’s models. A new steel door would cost around $2,206, but you would recoup around $1,409 at the time of sale, or 63.8%.
4. Create a grand entrance
A more ambitious (and expensive) front door project involves widening the entryway, while adding new fiberglass trim and lighting. The average cost to install a so-called grand entry is $10,556 and you will recoup about 60% of your investment.
5. Install a new wood floor
If your home has older carpet or tile, new wood flooring will increase its interior appeal. The benefits can be significant; homes with new wood floors are easier to sell and you can actually make money on this renovation unlike virtually any other project. The average cost of new flooring, according to NAR’s “2022 Remodeling Impact Report,” is $5,500, while the estimated cost recouped was $6,500, or 118% of the investment.
6. Renovate your existing hardwood floors
If installing a new hardwood floor is beyond the budget, a refinished hardwood floor is a great option to increase both the market value and the value of your home. The typical cost of refinished wood flooring is $3,400, and the estimated cost recouped is 147% of that, or $5,000.
7. Improve your insulation
The insulation of your home is important for your comfort and your budget. Upgrading can improve your home’s energy efficiency while helping to keep out unwanted noise from traffic or neighbors. The average cost of an insulation upgrade is $2,500 and you will likely recoup 100% of the expense, or $2,500.
Renovating your home can improve its livability and increase your chances of selling for your asking price – or more – quickly when the day comes. However, some projects offer a better return on investment than others. If you’re considering putting your home up for sale soon, consider consulting with a knowledgeable local real estate agent to find out what projects (if any) would make a difference to potential buyers.