Improving your home can be a hefty investment, and you want to spend your budget in the areas that will benefit your home's value the most. Which home improvement projects add the most value to a home? The best home renovations to complete before selling your home are the ones that are on the top of every buyer's must-have list. Update your New Jersey home for your enjoyment or to get the highest asking price possible using this list of remodeling projects with the best return on investment (ROI).
Boosting Curb Appeal
Over the past few years, home exterior improvement projects have shown the best ROI. Refreshing your home's exterior does wonder for boosting its curb appeal, which significantly impacts a buyer's impression of your home. A beautiful exterior sets the tone for what a buyer expects from the rest of the house. On the other hand, a tired and dated exterior will lower a buyer's expectations and even cause a buyer to assume the rest of the home will match the wear and tear of the outside, keeping them from even stepping foot in the door.
According to the 2022 Cost vs. Value Report, remodeling the exterior of your home will include the following:
- Replacing your garage door (90% ROI).
- Adding stone veneer (90% ROI).
- Creating a grand entry doorway (80% ROI).
- Replacing your siding with fiber cement siding (70% ROI).
- Replacing your windows (70% ROI).
Expect these updates to cost around $100K. Of course, these costs can fluctuate depending on the grade of materials you choose for each project and the size of your home.
If you're investing in remodeling your home's interior, look at your home's façade. If it's seen better days, consider one or more of the mentioned exterior upgrades to get the full benefits of any updates you're investing in on the inside.
Update Your Kitchen
Many times, the layout of a kitchen functions well. Still, the finishes are dated and worn, and the appliances need an upgrade. If this sounds like your kitchen, a minor kitchen remodel will keep the layout of your kitchen intact but freshen up every surface and finish. A minor kitchen update will deliver an 80% ROI, the highest ROI on interior upgrade investments. It includes new countertops, new cabinet fronts, replacing the flooring, new hardware, and plumbing fixtures, replacing the sink, and fresh paint. This also includes a new suite of energy-efficient appliances.
The starting cost for a minor kitchen remodel is around $40K but only includes midrange-grade materials, like laminate counters and a stainless steel sink. To make the most of your upgrade, select slightly higher quality finishes, like quartz countertops and an apron sink. Also, the kitchen island has become a staple on every homebuyer's must-have list. If your kitchen has the space or you have an open-concept floor plan, talk to your designer about adding a kitchen island with seating in your plans.
Improve Energy Efficiency
Although we don't have an exact ROI on boosting a home's energy efficiency, we know that an energy-efficient home can increase the market price by 3.5% to 9% over homes that do not have energy-efficient upgrades. Green-certified homes, LEED homes, and homes with ENERGY STAR-rated appliances, windows, doors, and systems will sell for more than homes that do not have these qualifications. It's also been shown that energy-efficient homes will sell faster than their non-efficient counterparts. Most homebuyers and homeowners today value energy efficiency, and updating your home to meet energy efficiency needs will increase your home's value, reducing the time your home is on the market if selling is your goal.
Install Smart Home Features
Like energy efficiency, the ROI for innovative home features isn't yet known. Still, we know that around 80% of homebuyers prefer buying a home that's already updated with smart technology rather than making the updates themselves. For example, at the top of most home buyer's lists is the following:
- Security Systems
- Smart Thermostat
- Entertainment Features, i.e., Surround Sound
- Smart Kitchen Appliances
These features will increase your home's asking price and reduce the time your home is on the market.
However, resist adding too many smart features that can overwhelm a buyer. Some innovative features can seem complicated or too niche for the typical buyer, so stick with what's familiar and popular in today's homes, like the updates mentioned above.
Add a Deck
Especially if your home lacks an outdoor area in the back, adding a deck to your home has an ROI of 65%. Wood decks have a better ROI than composite wood decks, but you will have to refinish the wood deck more often, which will cost you more over time. A standard wooden deck will include the following:
- A railing
- Stairs leading down into your backyard
- Built-in benches and planters
Invest a little more for a pergola or another covering that offers visual appeal and atmosphere. For example, in New Jersey, a wooden deck or composite deck, as described, will begin at around $35K.
Asking Your Local Home Improvement Specialists
These numbers and percentages are from your typical New Jersey buyers and real estate agents. However, your home remodeler will have unique insight into what updates homebuyers will typically make to a home right after purchase, which some realtors might not have. JMC Home Improvement Specialists has been serving the northern New Jersey area for several decades and specializes in improvements homeowners and homebuyers want. Contact JMC Home Improvement Specialists today to discuss your home's best bet on excellent ROI to make the most of your investment.
