Considering this blog is about getting out of debt, a post about spending money may seem a little counterintuitive. But when it comes to your home, spending money on renovations may be necessary to make sure you get the most you can when it’s time to sell.
To be clear, spending money on home renovations doesn’t usually mean you’ll make your money back and then some. The exceptions, according to the latest Remodeling Impact report by the National Association of Realtors, are for new roofing and hardwood flooring projects. More on these below.
What you can normally expect however, is that you may get a sizeable amount of what you spent back at resale for the home improvement projects that we’ve listed in this post while experiencing an increase of happiness spending time at home.
There is also something to be said for knowing which remodelling projects sell homes in your area. For that, it’s best to consult a real estate agent who specializes in your neighbourhood to find out who’s buying homes there and what their priorities are. If other homes in your area have recently remodelled kitchens for example, depending on how ‘hot’ or ‘cold’ the real estate market is when you’re looking to sell, you may need an upgraded kitchen just to keep up with the competition.
Having said that, these are the top five home improvement projects for getting your money back when you sell your home according to the experts.
According to the NAR report, new roofing cost about $7,500 with Realtors estimating that it added an average of approximately $8,000 to the eventual selling price for a 107% return on investment. With an ROI that high, 39% of realtors suggested completing this task to their clients before even trying to sell their homes with 33% of them saying that a new roof helped them close a sale.
- New Wood Flooring
Next on the list is new wood flooring. Floors are the hardest working surface in a home. They are also one of the first things people notice when entering a home. According to the Remodelling Report, putting in new wood floors is one of the home improvement projects that brought homeowners the most joy with 78% saying they “have a greater desire to be home since completing the project”. Depending on the square footage of your home, hardwood flooring can get pricey so keep an eye out for off-season sales or discounts. For example, Home Install Experts offers a 10% discount to Sam’s club members for new floor installations. The average ROI for new floors was 106% according to the same report.
- Refinishing Existing Hardwood Floors
According to homeowners in the study, 39% said they refinished their existing hardwood floors because the surfaces and/or finishes had worn out and 22% said that it was time for a change. On average, refinishing hardwood floors recouped homeowners 100% of the cost to do so when selling their homes. In other words, you may be able to refinish your existing hardwood floors and get close to the entire cost back at closing.
- Adding Stone Veneer to Your Exterior
Remodelling magazine also publishes a yearly report on remodelling projects and the dollar value they retain on average when homes are sold. It’s called the Cost vs Value Report and according to their numbers, homeowners with vinyl siding on the exteriors of their homes who replaced the bottom third with a manufactured stone veneer got back about 96% of what they spent for the facelift. This may sound expensive but it doesn’t have to be. The average job cost for this type of remodel was about $9,300. Just replacing the bottom third of the street-facing façade may be enough to give your home the “curb-side appeal” that draws buyers in and gets you great value for your investment.
- Replacing your Garage Door
On this home improvement project, both the NAR Remodelling Impact and Remodelling’s Cost vs Value reports agree: replacing your garage door can get you about 95% of the cost to do so back at resale. The recommendation here is to go with a painted steel, insulated door with thermal seals. Not only can getting the right colour door catch potential buyers’ eyes, as anyone who has a bedroom over a garage will tell you, keeping the cold out in winter is a must for sleeping comfortably and could save you money on your energy bills.