Home Renovations for ROI

Depending on your point of view, your new home is either a canvas on which to create something new and cool… or it represents near-tear anxiety over all of the work that needs to be done.

Home improvements are often met with trepidation, even if there’s excitement or enthusiasm, too. Everyone wonders: How will it look once complete? What will the final price tag be? And, will I get my money back?

Changing a home in both big and small ways provides the most beneficial outcome when you create a plan, stick to it, and make smart and cost-effective choices. Experts agree that the key to successful home renovation is picking projects that will lead to a true return on your investment. What that “return” is will be defined by you. Maybe your ROI is a more calming environment that allows you to chill out. Maybe it’s a brighter kitchen with more space to cook. Perhaps it’s the addition of another bedroom that accommodates your guest list.

Or maybe it’s legitimizing a higher asking price when your house hits the market.

Your friends here at Utility Concierge have a few tips on home improvement projects that are poised to provide the greatest monetary ROI.

Go Big and Go Home
Micro homes are for cartoon people. Those in the real world want space to roam, and plenty of it. Realtor.com’s article, “Top Seven ROI Remodels” says that if you’re going to remodel, add space because square footage equals value. If adding a room or area isn’t on the agenda, the article also provides a dollar amount ROI for specific major renovations. For example, if you’re taking on a minor kitchen remodeling project (new cabinets, countertops, flooring, etc.) that costs roughly $18,000, then you can expect to get about 85.2 percent back when you sell the home, according to the article. If you planned to stay at the address for a couple of years to enjoy the new kitchen amenities, then it could very well be worth the investment.

Remodeling magazine has this helpful tool, which allows you to analyze the cost of a specific renovation in relation to its resale value. You can even get specifics based on your geographic region.

Photo courtesy of freshome.com

Think Functional, Not Fly
Not all home renovations have an aesthetic agenda. Sometimes function is more important than form. (Think Target rather than Neiman Marcus, if you know what we mean.) DIY Network has this list of the top home renovation investments, and all of them are practical solutions. Nope, siding isn’t sexy and windows aren’t wicked cool, but improving both of these can help increase the value of your home—and cut down on utility costs big time. (Read even more about practical renovation ideas here at Home Logic.)

Invest in Sweat Equity
There are dozens of small home renovation projects you can do yourself—even on a budget. Here, Investopedia, provides a long list of inexpensive projects that lead to ROI, from new paint to installing modern fixtures. Repainting is one of the most impactful yet inexpensive improvements on the planet. You can change the feel of an entire room with a new hue. Just remember that not everyone likes It’s a Party Fushia in the kitchen or Go Goth Black in the bedroom, so use non-traditional colors sparingly.

What home improvement have you made that led to a healthy ROI? Share your thoughts in the space below.

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This post was written by Utility Concierge