|Ideally, home improvement projects make your home look nicer and add to its overall value. But not all projects are created equal. Before you start making updates, consider the value added for each and prioritize the ones that will give you the biggest return when it comes time to sell.
Recent and long-term trends indicate cosmetic changes to the exterior of the house result in greater return on investment (ROI) than interior updates. These curb appeal projects range from the simple, such as replacing a front door, to the more complex, like updating the siding or the windows. Exterior upgrades can be particularly important if you intend to sell your home in the near future.
The Top Three
The only project that returns a higher amount than its cost is attic insulation. Putting fiberglass insulation in the attic offers an ROI of 107.7 percent. Replacing an entryway with a steel door comes in next with an ROI of 90.7 percent. And at 89.4 percent, the third highest ROI project is manufactured stone veneer.
If you don’t plan on leaving your home anytime soon but still want to refresh some areas, keep an eye on trends. Avoid anything that could lose its appeal next year. Instead, consider classic updates with a modern feel. Many consider subway tiles, for example, to be an enduring style choice. Marble kitchen countertops may look great today, but wood may be the hot new thing tomorrow.
According to a Harvard Joint Center for Housing Studies report, home remodel spending is expected to increase an average of 2 percent each year through 2025. Improvements focused on environmental sustainability, energy efficiency and home automation are likely to see growth.