Like most homeowners, you probably have a home improvement project or two on your wish list. These investments can improve your quality of life and the increase the value of your home. They’re also time-consuming and expensive.
You get to tackle a home improvement project on this scale once every few years. How do you decide what comes first?
The ROI of a home improvement project
Home improvement return on investment (ROI): The amount of money you can expect to get back when you sell relative to what you’ve spent on home improvements.
- This value usually represents the percentage of return. One hundred percent ROI means that you earned back everything you spent on your home improvement project. Zero percent ROI means you didn’t recoup any of that money at all. These percentages vary based on the type of project, the region, and market trends.
On the Move
Your home improvement project has a greater sense of urgency when you’re considering a near-term resale. The goal is to make improvements that get your home sold without spending more than the net value of the investments. In most cases, this means sticking to minor home improvements.
Read: A new roof can be one of the best tips for selling your home (Part 1)
In the South Atlantic region — where our customers in Washington, D.C., Maryland, Virginia and North Carolina live —the safest home improvement projects secure your home from the elements while enhancing the aesthetics.
Curb appeal matters! Landscaping is another way to deliver home improvement ROI. John Gidding, host of HGTV’s Curb Appeal, told The Washington Post’s Jill Chodorov that the ROI of landscaping your property is 150 percent — “but to me,” he added, “that’s conservative.”
“I have been asked about this multiple times,” Gidding said. “On a Curb Appeal project, I put in $20,000 and the sellers got $200,000 more than they had paid for the house just a year prior. The return was astonishing…I would not say that every $20,000 gets you $200,000. It depends on if you are investing your money well. The best strategy is to research the architectural style of your home and create a landscaping plan that matches.”
Consider Your Market. You earn a higher home improvement project ROI when you have the improvements that buyers want. Pretty obvious, right?
HarryHelmet.com reports that wood decks are smart investments in Baltimore, for instance: “This deck would be 320 square feet and be anchored into concrete piers that support 4×4 posts and feature pressure treated joists and deck boards. It would include steps, a planter, a built-in bench, and wood railing all around it. Though the total cost would be around $9,300 the homeowner could recoup about 78.6% of what he or she spends.”
The same source notes that fiber-cement siding replacement is a smart home improvement project for Washington, D.C. residents, Richmond homeowners should consider bathroom remodels and our friends in Harrisburg may want to look at attic bedroom conversions.
What’s hot? In a hot housing market like Washington, D.C., a bathroom remodel can earn you a positive return on your investment despite the up-front cost. However, you may be better served by adding a second bathroom rather than a simple rehab of the existing space.
Charlotte, N.C. is another hot housing market. In this case, a home improvement project may not be needed. Houses in Charlotte are selling so quickly that buyers are paying a premium despite imperfections. If you’re selling in Charlotte, spend on practical updates like windows, doors and roofs.
Long Roofing now serves the Charlotte, North Carolina, Harrisburg, Pennsylvania and Richmond, Virginia metro areas.
Give us a call when you’re selling your home. We make sure that you have the kind of roofing that earns top dollar on the housing market. If you don’t, we can help you with a roof replacement that will maximize your housing value when you do sell.
Contact Long Roofing at 1-866-328-1187 or visit us online to schedule a free, in-home consultation or find answers to any home roofing questions. Ask us about our industry-leading 50-year roofing warranty.
Long Fence and Home also provides roofing, windows and doors in the Washington, D.C. metro area.