As a homeowner you should always ask yourself what the return on your investment will be – before you begin any upgrade to your home. While right now you may think that you’ll be living in that house forever. But most people don’t live in the same house for their entire lives. Therefore, you must consider whether or not your upgrade will pay for itself when you are ready to sell your home.
There are certain repairs that will need to be completed regardless of the return. For example , if your air conditioner goes out or your roof becomes damaged and needs to be replaced. You don’t have any choice but to replace these items. These are the types of upgrades that bring up your home’s value regardless. However, there are certain things you can do to your home that will always bring you a good return on your investment. Below are some of the upgrades that most Realtors recommend for the best ROI.
1. Interior and exterior painting are generally the most inexpensive of all upgrades, especially if you do the work yourself, and will instantly raise the value of your home.
2. A new front door. A good quality steel door can be a bit expensive, usually more than a thousand dollars; however, a new front door will enhance your curb appeal in a big way. Remember, the first thing everyone will see when they pull up to your home is the front door.
3. Kitchen/Bathroom Remodel or office addition. The most important part of the house most would say is the kitchen. A major bonus is to remodel the bathrooms or to add an office addition
4. Most people don’t realize that the addition of an outdoor deck or patio is a great amenity that’s in huge demand and will raise the value of their home.
5. Believe it or not quality custom garage doors are another surprising upgrade that most people never consider but should.
There is a common misconception that adding a second story to your home is a good investment; however, while it’s nice to have, the ROI versus the expense of the project don’t generally bring a good return. Especially if the other homes in your neighborhood don’t have second floors and yours does. On the same note, if all the homes in your neighborhood do have second floors and your does not, then adding a second story would increase the value of your home.
The best rule of thumb is to never upgrade your home beyond the value of the other homes in your neighborhood; otherwise, you will more than likely not get your money back. Talk to your realtor about which upgrades they recommend for your home. Your realtor will be familiar with the other homes in your neighborhood and will be able to make an educated recommendation for you based on his experience and knowledge of the area.