When considering a renovation to their home, many homeowners are concerned with how the renovation will impact the overall value of their property. While most professional renovations will add some value to your property, there are specific renovations that offer the greatest rate of return on your investment.
Projects That Offer The Highest Return On Investment (ROI)
When you are considering home improvement projects, you will be pleased to know that the following projects generally deliver a 70 percent ROI.
- Kitchen remodels. Even a simple remodel or upgrade to your kitchen can increase the value of your home.
- Replacing front door with a metal door. People like the look and added security of a metal door.
- Replacing the exterior siding. The appearance of your home is the first thing that anyone sees. Fresh siding gives the home curb appeal.
- Adding a deck area. Open deck areas improve home values more than closed in sun rooms.
So, if one of these projects cost $1,000 to complete, the home owner will see a minimum of $700 in increased home value. Other home improvement projects usually generate around 40 to 60 percent ROI.
Opt For Standard Finishes Instead Of Trendy
Unless you are planning to remain in your home for a considerable amount of time, you will want to stick with a more standard finish to any projects you have competed. Trendy colors or styles are great if you can sell your home quickly before the trend ends, but time-honored looks are great for any time you want to sell your home.
Look For Tax Incentives To Offset Remodeling Costs
Some local, provincial, and federal programs may offer incentives for updating and renovating your home so that they are energy efficient. Some local utility companies will also offer incentives to use more energy efficient appliances or to install insulation. Take advantage of all of these incentives to offset the costs of your renovations or improvements and then you can still benefit from the ROI in your increased home value.
One of the most important things to remember, however, is that the workmanship of the renovations is crucial to the increase in value. If you use a home improvement company that uses low-quality products or has sloppy workmanship, your renovation may actually decrease the value of your home.
If you want to have a quality renovation made on your home, Call Litwiller Renovations in Calgary at 403.275.2588.