With less travel happening this summer, homeowners enjoying a staycation may be looking to improve their surroundings. Many may be contemplating home improvement projects that will provide a bigger return on their investment. When tapping into the equity in your home with a Home Equity Loan or a Home Equity Line of Credit (HELOC), you want to know that your money is being well spent. Getting the best return on your home improvement dollars should be a primary goal. You will not only improve your living space, but you may also increase the value of your home.
6 Home Improvement Projects with a Big Return
1 Minor Bathroom Remodel
According to HGTV, a minor bathroom remodel can provide you with a 102% return at resale. That’s a nice return and well worth your investment. A minor remodel may include replacing the tub, tile, floor, toilet, sink, vanity, lighting, and fixtures. Bathrooms and kitchens can really help to sell a house. Even a minor update can reap a big return.
Landscaping can make a home look fresh and aesthetically appealing; as well as provide an approximate 100%* return on your investment if you sell your home. Landscaping can be a cost-effective way to improve your home and recoup your investment. If you’ve already got a healthy green lawn, some other things to consider include planting trees, shrubs, and bushes. You can also touch up certain areas with mulch and plant a seasonal splash of color. Adding a walkway and some landscaping lights can also dramatically improve the allure of your home. Best of all, well-maintained landscaping never goes out of style.
3 Minor Kitchen Remodel
Another great home improvement option, a minor kitchen remodel can bring you about a 98%* return on your investment at resale. Minor means only spending about $15,000 for cosmetic updates. Going further with major renovations that cost more will not give you a better return. Minor renovations might include replacing existing appliances with newer models or refinishing old cabinets. Bringing new life to a kitchen with a fresh coat of paint and new lighting can do wonders for improving the look.
4 Exterior Home Improvements
This can get you another good return on your money invested at a 95%* return. Exterior improvement can include vinyl siding, new paint, or new front door entry. It can also include a garage door replacement or manufactured stone veneer, which are both excellent home improvements when it comes to getting a big return. Remember, if you do eventually decide to sell your home, most buyers will do a drive-by inspection first. If they aren’t impressed by the outside, they may not even bother to look inside.
5 New Bedroom
Converting an attic or another unused space into a bedroom can provide you with a 93%* average return at resale. Turning a two-bedroom home into a three-bedroom home is a big bonus. Two-bedroom vs three-bedroom resale value can be significant. It’s definitely something to consider.
6 Roof Repair or Replacement
A new roof can be extremely expensive, but when it comes to selling a home it can definitely impact the number of offers you get; as well as the selling price. If your roof is in need of repair or replacement, it’s something you should seriously consider.
Home Remodels Can Increase Value
When planning for home improvement projects, it’s smart to consider those items that will give you a bigger bang for your buck. The home improvement projects we’ve mentioned above will do just that. Keep in mind that the more extensive and expensive the project, the less of a return you may get on your investment. Minor kitchen and bath remodels always recoup more than major remodels. This may be true for other improvements as well.
Financing Your Home Improvement Projects
Many home buyers tap into the equity in their homes to complete home improvements. Benchmark Federal Credit Union currently offers members several loan options, including a Fixed Home Equity Loan and a HELOC. Both are excellent solutions to help take advantage of the equity in your home for home improvement projects. When financing a remodel, be sure to set aside about 10 to 15% of your budget for unexpected expenses. You want to be sure you have enough to complete your project.