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Get The Best Return On Your Investment


Remodelers of Houston remodeled this kitchen to include a large island, peninsula and dining area. The matching “X” design on the upper cabinets, ends of the island and peninsula adds interest and uniformity. The open concept space opens to the dining and living areas. (Photo Courtesy of Remodelers of Houston.)

Smart remodeling will add market value

Investing in home improvement projects can have a huge return. Good decision making and planning will add value to your home, whether the goal is to create a more enjoyable living space or to put the home on the market.

Many homeowners who plan to be in their homes for awhile, have thought about updating and customizing it to make it more enjoyable, com­fort­­able, and to better fit their family’s cur­­rent living needs, but they had concerns about what their ROI (Return on In­vest­ment) would look like when they decide to sell.

According to the Houston Re­mode­ling Council, there are projects that have an attractive ROI so that you can have your cake and eat it too. Here’s how: 1) Re­model smart now; 2) Enjoy your remodeled space; 3) Sell your home later and get a good ROI.

It pays to know what projects deliver the highest ROI. A recent National Asso­ciation of Home Builders (NAHB) survey of remodelers revealed what im­prove­ments you and family members can enjoy now that will later give you a nice ROI and make your home more appealing to buyers when your house goes on the market.

Market data showed that small, smart remodels reward homeowners with a better return on investment. Here are five of the most common remodeling jobs:

Kitchen Remodel–A minor kitchen remodel can improve the look and utility of the space without costing a bundle, and can yield a 75 percent return. Con­sider replacing backsplashes, cabinet fronts, countertops, and flooring. Installing low-flow faucets and energy-efficient appliances can also reduce water and energy expenses in a heavily used room.

Bathroom Remodel – Payback on remodeling a bathroom can reach 65 percent with new fixtures, tile, toilet, vanity and lighting. Low flow toilets consume less water and can decrease the monthly water bill.

Whole House Remodel – Repairs and replacements of old components and the desire for upgraded amenities were cited as the top reasons homeowners hired a remodeler. Eval­uate the use of the entire home to see how remodeling would best fit your family needs and lifestyle. Re-purposing spaces can make better use of the home’s square footage and equity, rather than moving to a new home and mortgage.

Room Additions – Room additions have become increasingly popular in the last five years. Additions are added for a variety of reasons including a change of the number of people living in the home, multi-generational living, a desire or need for more space, or to increase the home’s value.

“Make the smartest investment in your home by hiring a professional remodeler”

Window & Door Replacement – Up­dating windows can also return a solid portion of the investment (73 percent for wood frames and 71 percent for vinyl). New, energy-efficient doors and windows also help reduce energy leakage from the home and can bring down heating and cooling bills.

More Projects – There are more projects that will increase the value of your home. Accord­ing to the Cost vs Value Report, projects with the most ROI were curb appeal projects done in front of your house. For example, the gar­age door earned you 97.5% of your money back. Man­ufac­tured stone veneer had a 94.9%. Metal roofs, while only yielding a 60.9% ROI, are predicted to increase. An attractive steel, entry door can have a 75% ROI.

When looking for big impact for small investment inside the home, consider updating floors, countertops, lighting fixtures, and adding a fresh coat of paint.

“Make the smartest investment in your home by hiring a professional remodeler,” says Sherry Pruitt, GHBA Remodeler Council President. “They will help you stay on budget, solve remodeling challenges, and provide a higher-quality service. “

Visit nahb.org/remodel or ghba.org for more information.

 

The warm family kitchen features traditional styling and modern conveniences that culminate in a functional gathering space. (Photo – Michael Kaskel.)


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