Are you considering selling your home and looking to maximise its resale value? Home improvements can be a powerful tool for increasing the appeal and marketability of your property.
Whether you’re preparing to sell soon or want to enhance your home’s value with a return on investment (ROI) in mind, this is a smart financial move.
Home Improvements with the Best ROI
1. HVAC Conversion (Electrification)
According to the 2023 Cost vs. Value Report by Remodelling by JLC for the Pacific Region, converting a fossil-fuel-burning furnace to an electric heat pump and installing new lines and wall units has the highest ROI.
The conversion project is costly, but the ROI is outstanding at over 100%.
- Average cost: $18,873
- Average resale value: $19,770
- Cost recouped: 104.8%
2. Focus on Curb Appeal
Make a positive first impression when selling your house. Since the exterior is what potential buyers see first, update the exterior of your home with landscaping, a fresh coat of paint, or spruce up your entryway.
As per the report, these curb appeal enhancers have the highest returns:
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Garage Door Replacement
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- Average cost: $4,756
- Average resale value: $4,604
- Cost recouped: 96.8%
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Entry Door Replacement (Steel)
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- Average cost: $3,839
- Average resale value: $3,406
- Cost recouped: 88.7%
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Manufactured Stone Veneer
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- Average cost: $11,785
- Average resale value: $9,973
- Cost recouped: 84.6%
3. Siding Replacement
The siding of a house is one of the most prominent features of its exterior. If it appears worn out or shabby, it can ruin the overall appearance of the whole property. It might be worth contemplating replacing the old siding with newer, better-quality materials.
There are two durable materials to consider for your home’s exterior: fibre-cement and vinyl, offering a modern and fresh look while providing long-lasting protection from the elements.
Vinyl
- Average cost: $18,228
- Average resale value: $17,922
- Cost recouped: 98.3%
Fibre-cement
- Average cost: $19,765
- Average resale value: $17,172
- Cost recouped: 86.9%
4. Minor Kitchen Remodel (Midrange)
The kitchen is often regarded as the heart of the home and can significantly impact a buyer’s decision.
Upgrade old appliances, install modern countertops, or refresh cabinets with a new coat of paint or updated hardware. Even small changes can make a big difference.
- Average cost: $28,057
- Average resale value: $22,221
- Cost recouped: 79.2%
5. Window Replacement
This home improvement project enhances the interior look and also has practical benefits. You can reduce energy bills and boost comfort with energy-efficient windows.
It’s a worthy investment that can pay off in the long run.
Vinyl
- Average cost: $22,299
- Average resale value: $15,215
- Cost recouped: 68.2%
Wood
- Average cost: $26,528
- Average resale value: $15,336
- Cost recouped: 57.8%
6. Bathroom Remodel (Midrange)
Bathrooms are another area that buyers pay close attention to. Consider upgrading fixtures, replacing old tiles, or adding energy-efficient features.
- Average cost: $27,024
- Average resale value: $16,893
- Cost recouped: 62.5%
7. Roofing Replacement
A new roof boosts the home’s overall appearance and signals potential buyers that the property has been well-maintained, potentially justifying a higher selling price.
Additionally, modern roofing materials often come with energy-efficient features, appealing to environmentally conscious buyers and those looking to save on energy costs.
Reduced maintenance requirements and the assurance of a well-kept roof make the home more attractive on the market.
Asphalt Shingles
- Average cost: $33,541
- Average resale value: $20,561
- Cost recouped: 61.3%
Metal
- Average cost: $55,619
- Average resale value: $24,127
- Cost recouped: 43.4%
Other Valuable Home Improvement Projects
1. Outdoor Living Spaces
Outdoor living spaces have become increasingly popular. There are numerous ways to transform your backyard into a functional outdoor living space. You can add a deck, patio, or outdoor kitchen.
Read our blog post about the best outdoor living ideas to find the right beautiful extension of your home.
Additionally, remodeling outdoor features can financially benefit homeowners who plan to sell their property. NAR, Most REALTORS® Recommend Improving Curb Appeal, and Homeowners Can Benefit Financially and Emotionally by Remodeling Outdoor Features, NAR-NALP Report Finds: Most REALTORS® (92%) suggest that sellers improve the curb appeal of their home before listing it for sale.
2. Address Structural Issues
Before focusing on cosmetic upgrades, ensure that the structure of your home is sound. Address any issues such as roof leaks, foundation cracks, or plumbing problems.
Hire a home inspector to find and fix problems before you sell your home. Then, you can demonstrate your detailed care for the buyer’s future home by providing them with receipts.
3. Install Hardwood Floors
Beyond the timeless elegance they bring to any room, hardwood floors are durable and easy to maintain. They are versatile and can work effectively in almost any room while also increasing the value of your home.
NAR, Remodeling Impact, for interior projects, the highest percentage cost recovered was from refinishing hardwood floors at 147%, new wood flooring at 118%, and insulation upgrade at 100%.
In conclusion, remember to prioritise upgrades that offer the best ROI and appeal to a broad range of tastes. By strategically investing in your home, you can maximise your property’s value and ensure a successful sale.
Finally, as your real estate agent, we are happy to further extend our services by offering our list of local, trusted service providers. Call us about your particular needs, and we will connect you with a qualified service provider in our area who can assist you.