Home Improvements that Offer the Best ROI

Home improvements can increase the resale value of your home. But not all types of home improvement projects will add to the value of your home. Generally, renovations do not deliver a dollar-for-dollar return on investment and this is the truth.

Before you invest a significant amount of your precious home equity into remodeling projects, it's wise to do a little homework on what kind of payback you can expect for various home projects in your area. In determining the scope of your renovations, forget about the luxuries but keep the renovations general that improve the home’s appearance.

            A good rule of the thumb when it comes to renovations is to make your home no more than second best in the area. Avoid overpricing your home in the neighborhood by being the best on the block.

If you’re investing in your home specifically to help sell it, focus your dollars on the things that will really wow a potential buyer. Below are home remodeling projects with the highest return on investment.

1. Interior Paint and Decoration - The best uses of your renovation dollars with an average potential payback of 73 percent is to elegantly coat your walls and ceilings with a fresh paint. A new paint generally leaves a good overall impression. You can do it yourself thus eliminating labor cost.  Neutral décor is elegance, neutral colors offer a balance to your home’s every excess.

2. The Kitchen – A fresh face on your kitchen is your best investment. Remodeling the kitchen provides an average payback of 72 percent as noted by professional appraisers. You can consider lower-cost quick fixes such as updating the lighting, cabinet doorknob replacement or installing a new counter top.  Your budget cost of the remodel should no more than 20% of the value of your home.  Baby boomers want a modern kitchen with the cook top stove and nice cabinets, wine coolers and subzero refrigerators.

3. The bathroom - Bathroom renovation’s payback is 68 percent for a full renovation. It is recommended by experts to update the look while keeping the fixtures neutral. For a lower payback you may install a modernized mirror, medicine cabinet or vanity as well as a new lighting which can do wonders. Current trends are siding with stand up showers rather than garden tubs. You may consider popular renovations which include skylights, couples walk-in showers, glass block windows and vaulted ceilings.