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February 12, 2020

Renovation ROI: Home Improvements That Pay Off

Looking to upgrade your kitchen? Add a bathroom? Install hardwood flooring? Update your home’s exterior? Snazz up the landscaping?
 
Whether you are a DIYer or prefer to have a contractor do the heavy lifting, home improvements come with a cost.

Which projects will give you the best return on your renovation investment?

The Remodeling 2019 Cost vs. Value Report highlights these popular home renovation projects with excellent ROI for the Pittsburgh area.

1. Bath Remodel or Addition

If your home has only one bath, adding another is a surefire way to add value. Updating a bath with new tile, cabinetry and fixtures is also a plus. Try not to move plumbing or walls to avoid the extra cost. Choose fixtures and finishes that are both good quality and good value. A bath remodel or addition can recoup up to 80% of its cost.

2. Kitchen Remodel

Most homeowners and buyers want a bright, light kitchen with an efficient work area, plenty of storage, and an island. For best return, keep your costs in check. Reface and paint cabinets if possible. Install new sinks, faucets, countertops, and appliances that are both reasonably priced and good quality. You can recoup up to 79% of the cost of a kitchen remodel.

3. Exterior Upgrades

Curb appeal makes a big difference in home prices. You can replace your front door with a steel door or add sidelights to emphasize your front entrance. Install a new insulated garage door that features windows, strap hinges, and carriage handles. Update your siding with stone veneer on the lower half of the home, around the front door, or to set off the garage door. Make sure your home is recently painted. New windows can be a good investment and can also save on energy costs. You can recoup from 73% to 98% of the cost for these improvements.

4. Deck Addition

A deck is a popular feature in just about every neighborhood. The deck should be large enough for a table and chairs, plus a seating area if possible. When replacing or adding a deck, you may need to budget for a new sliding glass door for easy access. A new deck usually recoups as much as 77% of its cost.

Some Other Considerations

Another important factor is how long you plan to live in your home. If you think you’ll stay for more than five years, choose the renovations that matter most to your family even if they’re not the highest ROI projects. But if you plan to move within a few years, you’ll want to consider the ROI as a higher priority. 

To finance home improvements, most homeowners choose a home equity loan or line of credit. Contact your community bank for information on which loan is right for you and how to get the financing in place.
 
These tips are provided by Brentwood Bank and are for educational purposes only. Brentwood Bank makes no representations as to the accuracy, completeness, or specific suitability of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. Brentwood Bank recommends you consult a professional for any specific guidance you are seeking.