In a competitive housing market like Coronado, homeowners may be quicker to sink money into home improvement projects than purchasing a new property entirely.
The good news is that the benefits of a renovation are often twofold: While a home improvement will add extra comfort and enjoyment to an owner’s livelihood, the facelift will will pave the way for a smooth sale in the future.
As a trusted and seasoned real estate agent in the area, I understand the inner workings of what it takes to sell a home and what attributes are attractive to potential buyers.
I also understand that the payback received will vary widely, depending on the type of improvement project.
To both bolster your own quality of living and set yourself up for success in the future, here are five home renovations that have been proven to provide the best return.
HVAC conversion
The 2023 Cost vs. Value report conducted through Remodeling by JLC uses value figures derived from more than 6,000 Realtors in the U.S., comparing 23 remodel projects with the value those projects retain at resale in 150 U.S. markets.
According to the 2023 national averages, an HVAC conversion provided 103.5% return on investment.
Removing an oil or gas furnace and replacing it with electric heating, ventilation and air conditioning is currently the No. 1 renovation project that will provide the highest return.
Front door
Consistent with the study’s findings over the past 30 years, exterior replacement projects typically provide a higher return on investment than interior remodels.
This fact may be contradictory to many initial beliefs. Who wouldn’t be sold on a high-end, state-of-the art kitchen?
But, despite the common saying, people will always judge a book by its cover, and curb appeal is your biggest ally when it comes to home improvement.
The task is simple and fairly cheap: upgrade your front door to give your home a fresh first impression. The cost will be recovered 100.9% according to the 2023 report.
Siding
Synonymous with the front door theory, investing in new siding will boost the appearance of your home while saving you the hassle on future maintenance issues.
Using vinyl will recover 94.7% of the initial cost. Fiber cement siding, while more expensive, offers a high quality overall appearance.
Minor kitchen remodel
Why minor? Upscale kitchen remodels don’t necessarily influence the value of your home, simply because homeowners’ tastes in a dream kitchen will vary.
Homebuyers may be hesitant to pay for every fancy addition to a new kitchen.
Minor improvements such as updated backsplash, clean-looking cabinets and updated appliances will take your house far when it comes time to sell, giving you an 85.7% return.
Of course, these numbers are only taking into consideration the monetary return. Every kitchen update that you curate to fit your visions of a dream home will give you your own return of satisfaction and enjoyment as a homeowner.
Midrange bath remodel
The same goes for a bathroom remodel. Coming in at a 66.7% return, a bathroom remodel will not necessarily give you the highest return on your investment.
Buyers are looking for clean and functional bathrooms, not bathrooms with the newest technology. Bathroom renovations also can be pricey, so that added factor contributes to a lower return on investment.
If you have questions about which home remodels will garner the highest return, don’t hesitate to reach out 619-568-0568 or info@simonerealestategroup.com.
I am here to provide you with an expert analysis on all things real estate, especially when it comes to staying informed about the newest data on getting the best return on investment when it comes time to sell.
I am always here to help and support you in your home ownership journey.
-Corey
