What Can I Expect on My Investment?
It is a question that troubles many homeowners, and home sellers alike. What to tackle first? What projects have the highest likely hood to increase resale value or make a house sell more quickly?
Well- the truth is that there is no right answer. The market is dynamic, and as such, what works now may not work in a month from now. What works on one part of town may not work in another. There is no definitive perfect strategy, however, there has been (and continues to be) ongoing studies into the subject.
We take a look at some of the home improvments that have done well universally across these various studies and let you know what kind of return you can reasonably expect on your investment.
Fiberglass Entry Door: 111.8%
We all know how important first impressions are, so it makes sense that something as simple as a fiberglass entry door can make a real difference. According to an article on Realtor.com a steel entry door is the project expected to have the highest ROI with a an expected 101.8% return on your investment. A 20 guage steel entry door will run you about $1200. A very cheap and easy to complete project with a very high return. According to the most recent data on a national cost vs value report, you can take this a step further by purchasing a fiberglass entry door. The initial cost is higher ($3200) but considering you're looking at 111% return, the cost is inconsequential
Manufactured Stone Veneer: 118.2%
Making the investment to include manufactured stone veneer is another exterior project which has a very high ROI. According to Remodeling.com cost vs value data fro 2016, the cost of adding stone veneer is $7,566, and on that investment, you can reasonably expect roughly $8,942 added to your home's perceived value.
In addition to having a very high ROI, manufactured stone veneer also sells a house faster. On Average, homes with this veneer tended to sell a week faster than those without.
Home automation, (esp. Smart Locks)
"Smart Home" is a very "hot" term on the market these days, according to HomeAdvisor.com. Clair Jones of LocalInternetService.com says, “Most smart locks are available for under $250. For such a small purchase cost, home owners can expect a full return on their investment when they sell their home, and may even see an opportunity to present their property as a ‘smart home’, which is a hot market term right now”.
Like most technology products, the price ranges vary from cost-effective to break the bank, so weigh your potential return with your realtor before proceeding.
Garage Door Replacement - 108.4%
Replaceing garage doors with new, updated styles is another relatively inexpensive project you can do that will have a very high ROI. Accroding to the 2016 estimates, a new garage door will cost you on average %1800, and will net you just over $2000 in perceived home value. Not too shabby for an easy to do, fast project
Updated Landscaping - 100% +
Not surprisingly, having a newly updated landscape is a great way to add resale value. The everage landscaping job will cost you about $3500, and you can expect to get that value back completely. Good landscaping can increase a home’s value by 28% percent and have it sold 10 to 15 percent quicker.
According to Bankrate, a quality landscaping job has the potential to net you a whopping 252 percent return in increased home value.
In your landscape planning, be sure to reduce the amount of maintenance the landscaping requires as much as you can. Additionally, adding patches of gravel or any other rennovation that reduces the amount of water use is also a big check in the plus column.
Privacy Fence -100%
Adding a privacy fence is another project for your home that you can expect a very good ROI. Especially if you go with a horizontal wood fence like the one in the image to the right.
Adding a new fence will cost you around $2500, but you can expect to see that all of that investment back in the value that the fence adds to the home.
We can conclude from this list that the most important investments you can make in terms of remodeling are ones that are directly related to the aethetics of the exterior of the home. That speaks a lot to the importance of first impressions and curb appeal in relation to the perceived value of a home.
You can see the full cost vs value 2016 report here. This report is in its18th year, and is a very trusted source for information.