Best Home Improvements That Add Value To Your Home

All home improvements are not created equal though, some will provide a much better rate of return on your investment than others.

Summertime is the perfect season to do some work on your house. Whether you are considering a major renovation, or a small remodel, one of the first questions you should ask is, will this add value to my home? Home remodels carry a number of benefits, they give a house a fresh look, make it more modern and in many cases will boost the value of your house.

All home improvements are not created equal though, some will provide a much better rate of return on your investment than others.

Knowing which improvements are the best investment can help you plan your remodel. Here is a quick rundown of the home improvements that will give you the biggest bang for your buck:

Lower Cost Projects

Simple projects often provide the biggest return for the money spent. These types of improvements usually update the look of the house at a fairly low cost. According to Remodeling Modeling Magazine these low budget projects will give you a great return when you sell your house.

• Front Door – Updating your front door with a steel model will give your house an updated look and will return roughly 85 percent of the money you spend on it.
• Adding a Deck – A wooden deck on the back of the house not only looks great and gives your family a place to relax but it is also an excellent investment. A deck will return roughly 75 percent of the money put into it.
• New Windows – Pulling out your old drafty windows and replacing them with brand new energy efficient models adds value to your house and can also lower your heating and cooling bills. This improvement brings a return of 68 percent.
• Facelift Your Kitchen – Gutting your kitchen can be an extremely expensive deal and will not always pay off well, but a simple facelift can be a fantastic investment. Re-facing cabinets, putting in new appliances and updating countertops can bring back roughly 68 percent of the money you spend.

Major Projects

If your house is in need of something more than a facelift you may find yourself spending big money on your projects. If done right, even major projects can pay a good return.

New Siding – Replacing the siding on your house gives it great curb appeal while also adding value. Fiber cement siding returns almost 80 percent of the money you spend on it when it comes time to sell.

Replace the Garage Door – Another great way to freshen up the look of your house. Adding an upscale garage door can make your house stand out from the crowd and give you a return of 75 percent.

Add a Bedroom – Putting an extra bedroom in the attic can give your teenager a space of their own while also paying off handsomely if you decide to sell some day. Attic bedrooms bring 72 percent of your money back to you.

Bad Ideas

Not every home improvement project can be a winner. Here are a few projects you should pass on:

Swim at the YMCA – Adding a pool is always a loser when it comes to recouping your money. Expect an 8 percent return on investment when it comes sinking a pool in the ground.

Home Office – This is another money pit when it comes to home improvement. A home office can be quite expensive to add and you will only recoup about 37 percent of the money you spend.

Sunrooms – While lovely to sit in, a sunroom only provides about a 42 percent return at selling time.

When all the hard work is done, don’t forget to update your homeowner’s insurance policy. If your home value has increased due to home improvements then you will want to speak with your home insurance agent about the proper amount of coverage and discounts. New home updates or renovations could provide an additional 25% off your home insurance premium. Most home insurance companies offer discounts for home renovations because the process has upgraded the home in most cases to make it safer like new wiring which as a result decreases the risk of a fire. It’s important to check with your home insurance agent before you start a home project so you know exactly what you can do to help qualify for additional discounts.