Did you know over 50% of American homeowners prefer to renovate their homes instead of buying new ones during the COVID-19 pandemic? With home prices at historic highs, more buyers are open to fixer-uppers. This makes home renovations even more important for increasing a home’s value when selling or refinancing.
In this article, we’ll look at the top 5 affordable home renovation ideas to boost your home’s value. These include simple DIY projects and strategic replacements. They can give you a great return on investment (ROI) and change your living spaces for the better.
Key Takeaways
- Homeowners are increasingly choosing to renovate their current homes rather than buying new ones
- Home renovations can significantly increase a home’s value when it comes time to sell or refinance
- Affordable home renovation ideas can provide an impressive return on investment (ROI)
- Simple DIY projects and strategic replacements can effectively transform living spaces
- Prioritizing cost-effective, high-impact renovations is key to maximizing your home’s value
Remodeling: The Key to Boosting Home Value
As a homeowner, you can change your property and increase its value with smart renovations. Not all projects are the same, but the right ones can give you a big return when you sell.
The Significance of Repairs and Renovations
Recent studies show that over half of American homeowners prefer to renovate their homes rather than move. Also, one-third of those looking for affordable housing are willing to buy a fixer-upper. This highlights the importance of home renovations in today’s real estate market.
Exterior Replacements Offer the Best ROI
Exterior replacement projects can greatly increase your home’s value. For example, replacing a garage door costs about $4,513 but can sell for $8,751, making a 193.9% return. Replacing an entry door with a steel model costs around $2,355 and can sell for $4,430, with a 188.1% return.
Other exterior projects, like installing a fiberglass grand entrance or adding manufactured stone veneer, also offer great ROI. These renovations improve your home’s curb appeal, leading to a significant return on investment.
Garage Door Replacement: A Wise Investment
Home renovation projects that offer a great return on investment (ROI) include garage door replacement. The “2024 Cost vs. Value Report” shows it’s a top choice. Homeowners can get back 193.9% of the average $4,513 cost.
Upgrading your garage door boosts your home’s curb appeal. It makes a great first impression on potential buyers. A new garage door instantly improves your home’s look and value.
- Garage door replacements have been in the top five best home improvement projects for the past 13 years, showcasing their consistent value-adding impact.
- The ROI for garage door replacements increased by 9.4% compared to the previous year, further solidifying its status as a smart investment.
- Modern garage doors offer improved insulation and weatherproofing properties, contributing to energy efficiency and reduced strain on heating and cooling systems, benefiting both current and prospective homeowners.
Getting a new garage door is a smart choice. It boosts your home’s curb appeal and offers a return on investment almost double the cost. Whether you’re selling your home or just want to upgrade, a garage door replacement is a wise and rewarding choice.
Enhance Curb Appeal with Entry Door Replacement
Your home’s entry door is key to its curb appeal. Replacing an old or damaged front door can make your home look fresh and inviting. It also boosts energy efficiency and security. Choosing a sleek steel door or a grand fiberglass entryway can greatly increase your home’s value and look.
Steel Entry Doors: Energy-Efficient and Stylish
Steel entry doors are loved for their energy efficiency and style. They fit snugly, cutting down on drafts and air leaks. This helps keep your home’s temperature steady. On average, a steel door can make back 188.1% of its $2,355 cost when you sell your home.
Steel doors come in many finishes, fitting any home style. Whether your home is traditional or modern, there’s a steel door for you.
Fiberglass Grand Entrance: A Welcoming Touch
A fiberglass front door adds a grand touch to your home. These doors cost about $11,353 on average. They return 97.4% of your investment by increasing your home’s value.
Fiberglass doors mimic the look of natural wood but are more durable and energy-efficient. They make a warm welcome for guests and boost your home’s curb appeal.
“Upgrading the exterior features of a home, such as doors and windows, can significantly boost curb appeal and equity.”
Choosing a steel or fiberglass door is a smart move. It not only makes your home look better but also saves energy and increases its value. Make a great first impression with a beautiful, energy-efficient front door.
Manufactured Stone Veneer: Classic Elegance
Adding manufactured stone veneer to your home’s exterior is a smart choice. It boosts curb appeal and return on investment. This material looks like natural stone but is more affordable, bringing classic elegance to your home.
Manufactured stone veneer mimics the look of stones like granite and marble. It lets homeowners create a unique and stunning look. Experts at Garden State Brickface and Siding and Best Stoneworks can help with various projects, from entryways to interior walls.
Manufactured stone veneer is not just about looks. It’s also durable and weather-resistant, needing little upkeep. Its affordability and easy installation make it a great choice for improving your home’s value.
Choosing manufactured stone veneer is a smart investment. It enhances curb appeal and return on investment. Whether you’re redoing your exterior or adding elegance, this material meets your needs and adds lasting value.
Minor Kitchen Remodel: Maximize Your Return
A minor kitchen remodel is a smart choice for home renovations. It offers a better return than a full kitchen makeover. A midrange kitchen update can return about 96.1% of the $27,492 average cost.
This type of remodel improves the look without changing the layout. It’s a smart way to boost your home’s value when you sell. Key elements to consider include:
- Refacing cabinets – A cost-effective way to update the look of your kitchen without a complete replacement.
- Replacing countertops and sink – Quartz is a durable, non-porous option that can enhance your kitchen’s appeal.
- Upgrading appliances – Energy-efficient models not only save you money on utility bills but also increase your home’s resale value.
- Repainting walls – A fresh coat of paint can instantly brighten and modernize your kitchen’s aesthetic.
Small kitchen projects can return more than 83% of the cost, according to the latest Cost vs. Value report. By focusing on these updates, you can enjoy a modern kitchen and a good return on investment when selling.
When planning your minor kitchen remodel, talk to local real estate experts. They can help you understand how much your home’s value might increase. Also, look into funding options like personal savings, refinancing, or a home equity line of credit. This will help you stay within your budget.
Siding Replacement: Protecting Your Investment
Updating your home’s siding can make it look better and keep it safe. The 2024 Cost vs. Value Report shows fiber-cement and vinyl siding are top choices.
Fiber-Cement Siding: Durable and Attractive
Replacing 1,250 square feet of siding with fiber-cement costs about $20,619. You can get back 88.4% of that money. Fiber-cement is tough, fireproof, and easy to care for.
This material can handle tough weather and protect your home for years.
Vinyl Siding: A Budget-Friendly Option
Vinyl siding is cheaper, costing around $17,410 for 1,250 square feet. It has a lower ROI of 80.2%. But, it’s a good choice for those who want to update their home without spending a lot.
Vinyl siding is easy to maintain and comes in many styles.
Choosing fiber-cement or vinyl siding can greatly improve your home’s look and value. Both are durable, save energy, and last a long time. They are smart choices for homeowners.
“Siding replacement can lead to significant energy cost reduction by improving energy efficiency in a home.”
Deck Additions: Expanding Your Living Space
Adding a new deck is a great way to make your home better and increase its value. You can choose from a classic wood deck or a composite deck for a low-maintenance option. Either way, it can make your outdoor space more functional and beautiful.
Wood Decks: A Classic Choice
A 16×20-foot wood deck can cost about $17,615 and can recoup 82.9% of the investment, says the “2024 Cost vs. Value Report.” Wood decks have a warm, natural look that fits many home styles. With regular care like power washing and staining, they can last for many years.
Composite Decks: Low-Maintenance Luxury
For a deck that’s easier to care for, think about a composite deck. They cost more, at about $24,206, but last longer and recoup 68.2% of the investment. Composite decks are also lighter and come with a 25-Year Warranty for all railings. This makes them a favorite for those who want a hassle-free outdoor space.
Choosing a wood or composite deck can greatly expand your living area and boost your home’s appeal and value. Deck additions are often seen as a smart investment compared to other big home changes. They offer a great way to improve your home without breaking the bank.
Bathroom Remodel: A Midrange Makeover
Boosting your home’s value is easier with a bathroom remodel. A midrange remodel can recoup about 73.7% of its cost, which is around $25,251. This makes it a smart choice for increasing your home value and return on investment.
This project usually includes enlarging the space, replacing fixtures, and upgrading materials. It does this without changing the layout. Realtors often suggest bathroom upgrades before listing a home. They say it can increase value by more than 25%. But, major, high-end remodels tend to have lower ROIs, around 45%.
| Bathroom Renovation Project | Average Cost | Average ROI |
|---|---|---|
| Midrange Bathroom Remodel | $25,251 | 73.7% |
| Upscale Bathroom Remodel | $67,106 | 56.6% |
| Midrange Bathroom Addition | $49,598 | 54% |
| Upscale Bathroom Addition | $91,287 | 54.7% |
When planning your bathroom remodel, focus on midrange updates. These updates enhance the space without changing the layout too much. This approach can significantly boost your home value and give a good return on investment.
Home Renovation: Improving Energy Efficiency
When you’re thinking about home renovations, remember to focus on energy efficiency. Boosting your home’s energy performance can lower utility costs and increase its value. Adding energy-efficient upgrades can lead to long-term savings and make your home more attractive to buyers.
Improving air sealing and insulation is a smart move. These changes can reduce energy use by about 10%. Plus, you can get a tax credit of up to 30% of the cost, capped at $1,200 per year. This makes these upgrades even more worth it.
Replacing windows and skylights is another great idea. The Inflation Reduction Act lets you claim a 30% tax credit, up to $600, for ENERGY STAR-certified ones. These upgrades improve your home’s look and help save money on energy bills over time.
Investing in a heat pump water heater is also a smart choice. These systems can get you a tax credit of up to $2,000, or 30% of the cost, under the Inflation Reduction Act. Plus, ground source and air source heat pumps can save up to 50% more energy than traditional systems.
By focusing on energy efficiency in your renovations, you’ll cut down on utility bills. You’ll also boost your home value and enjoy cost savings for many years. From insulation and windows to heating and cooling systems, there are many ways to make your home more sustainable and cost-effective.
Conclusion: Maximizing Your Home’s Value
Home renovations should focus on projects with the highest return on investment. The “2024 Cost vs. Value Report” shows that exterior upgrades are best. These include garage door and entry door changes, and adding manufactured stone veneer or new siding.
Kitchen and bathroom remodels can also pay off if done right. By planning well, homeowners can make their homes better, save energy, and increase their value. This way, they can make their homes worth more.
Whether it’s updating the kitchen, the bathroom, or the outside, think about the return first. This helps homeowners make smart choices. It’s all about getting the most out of their biggest investment – their home.
