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One of the most rewarding things about being a homeowner is that you can make changes to your home that will make it a more enjoyable place to live. However, you probably won’t be living in your home forever, so it is also worth considering how your home improvement projects will affect your home’s value.
The ROI or return on investment of a project tells you how much of the project cost returns to you in the form of a higher home value. The ROI is typically given as a percentage, based on research on home characteristics and sale prices. In most cases, the ROI is less than 100%, which means you spend more on the project than you recoup in the sale price. Therefore, most projects are best done if you still plan to live in the home several more years so you will be able to enjoy the home improvements that you make.
As you consider making home improvements, keep in mind which projects tend to have the highest ROI and which ones will not do much to improve your home value. You do not necessarily need to choose only the projects with a high ROI, but you should at least keep values in mind so you do not face any surprises when you go to sell your home.
Best renovation projects for improving home value
Worst renovation projects for improving home value
It is also worth mentioning that nearby home values affect the ROI on all of these projects. Your goal should be to have your home’s value about near the median in your neighborhood, rather than pricing yourself out with fancy renovations or skimping in an upscale neighborhood. Through all of this, though, remember that any improvement could be worth it to you if you find personal value and plan to keep the house for a long time.