Home Improvement Investment

home improvements that pay back moneyIf you are thinking about remodeling, getting ready to sell or just want to know where is the best place to spend your hard earned money in relation to your house, you need to be aware that the majority of home improvements fail to increase the value of your house enough to recover the cost of making the improvement. That being said, there are 10 home improvements you can make that will likely result in double digit returns at a minimum and possibly triple digit returns depending on where you live. The Home Improvement Increase In Value Calculator at HomeGain gives 10 home improvements that that you can make which will greatly increase the sale value of your home.

The actual percentage rate of return will depend where you live, as well as the cost of that home improvement. It’s necessary for you to input the area where you live by zip code to determine which home improvements will result in the greatest value in your area since they are quite different depending on where you live. For example, the top home improvement rate of return for San Francisco is 973% for cleaning and de-cluttering while the top home improvement in Seattle is 619% for lightening and brightening your home.

These are the 10 home improvements that you can make that will increase the value of you home the most in no particular order:

  • Clean / De-clutter : Remove clutter by storing items in basement, attic or friend’s home. Rent a storage space or sell excess items, if needed. Keep every room very clean during open homes. Do pre-open house cleanliness inspections.

  • Lighten & Brighten: Replace any burnt-out bulbs and use higher wattage bulbs, if possible. Have defective electrical components repaired or replaced. Make sure skylights are clear and keep drapes open during the day.
  • Yard: Store away personal effects from front yard. Hire gardener or landscaper to trim back the overgrowth and maintain yard. Make sure that your lawn has a healthy green appearance.
  • Plumbing & Electrical: Consider repairing or replacing any defective plumbing or electrical items in your home. Make sure you have the right person for the job by getting several estimates.
  • Staging: Buy some fresh flowers, live plants and other decorations to liven up the home. Dispose of old furniture or other large items. Consider renting furniture or hiring a staging consultant.
  • Update Kitchen & Bath: Update kitchen and baths by resurfacing cabinets or painting with neutral color. Replace toilet seats, dated fixtures and drawer/cabinet handles. Freshly caulk and redo grout in counter-tops, sinks, tubs and showers.
  • Paint Interior: Repair any damaged interior walls by patching all chips, holes and cracks; then touch up or repaint interior walls with neutral color.
  • Carpeting: If carpets are only lightly soiled, shampooing and/or spot removal should suffice. If there are rips, fading, heavy wear, smells or deep stains, replace with neutral color.
  • Flooring: Repair and refinish damaged floors, or cover with neutral-colored wall to wall carpet and note damage in your disclosure.
  • Paint Exterior: Repaint or resurface the outside walls of house, as needed. Patch and repair any damaged areas.
  • As you can see, the rate of return on the investment (ROI) varies greatly depending on the area you live:

    Improvement San Francisco New York Seattle Miami Ave. ROI
    Lighten & Brighten 865% ROI 823% ROI 619% ROI 642% ROI 737% ROI
    Clean / De-clutter 973% ROI 604% ROI 556% ROI 595% ROI 682% ROI
    Yard 426% ROI 177% ROI 198% ROI 258% ROI 265% ROI
    Plumbing & Elecrical 260% ROI 223% ROI 121% ROI 152% ROI 189% ROI
    Staging 251% ROI 159% ROI 213% ROI 66% ROI 172%. ROI
    Kitchen & Bath 168% ROI 131% ROI 141% ROI 128% ROI 142% ROI
    Paint Interior 148% ROI 48% ROI 56% ROI 52% ROI 76% ROI
    Flooring 101% ROI 48% ROI 34% ROI 39% ROI 56% ROI
    Carpeting 104% ROI 37% ROI 27% ROI 24% ROI 48% ROI
    Paint Exterior 76% ROI 31% ROI 22% ROI 32% ROI 40% ROI

    This should give you a good idea of where to invest your money when making improvements to your house. If you aren’t going to be moving in the near future, use a bit of common sense. If the home improvement will wear out or become old by the time you sell, then you’ll have to redo it again. Still, this is good information to know to help you save or make money with your home improvements rather than losing money on them.

    This entry was posted in Housing, Investing. Bookmark the permalink.

    7 Responses to Home Improvement Investment

    1. Pingback: My Money Forest - Personal Finance, Investing, Business and more!

    2. G says:

      The exterior is one of the most important parts of the property because of the visual effects. The proper landscaping and a well kept yard can dramatically increase the value of a house. Trees are desirable as well as fences. A few upgrades outdoors can dramatically improve the desirability of your property.

    3. Pingback: The Virtual Handshake Blog | » Carnival of the Capitalists 5-15-2006

    4. Pingback: Financial Rounds

    5. Lorraine Weston says:

      Staging plays such an important role when a house is being shown to potential buyers. Sometimes, it is what makes the difference between whether a buyer chooses your house or the one next door. If you know your house is in good condition, in a good neighborhood, etc., take that bit of extra time to add the finishing touches…it really does matter!

    6. DES says:

      My home is 14 years old, very well maintained and backs up to a golf course. I live in the midwest, which means outdoor activities are limited to 6 months, at best. I would like to add a covered deck (by extending the roof line) as well as increasing the size of the deck and possibly adding an outdoor patio/dining/firepit area. The recent quote to add the deck and covered roof is $34,000 since we would be using Tyvek vs Asek decking. What is the likelihood that I could regain my investment when I sale?

    7. pfadvice says:

      @ DES

      Your best bet is to ask a realator in your area – since prices vary so much from region to region and even in the local area, they would be the best ones to know whether you could get your money back for the investment

    Leave a Reply

    Your email address will not be published. Required fields are marked *