Homeownership is one of the most time-tested ways to build wealth in the U.S. It can help you build wealth thanks to home appreciation â but this isnât always guaranteed (just ask anyone who bought a home right before 2008).
Another way to build wealth through homeownership is by upgrading your home, thereby increasing its value. The idea is that when you eventually sell your home (or pass it on to your heirs) itâll be worth even more than simply keeping up with basic home maintenance alone.
And since you spend around 90% of your time indoors, you might as well enjoy your home a bit more while growing its value.
10 Impactful Ways to Raise Your Homeâs Value
The opportunities for upgrading your home are endless. But if youâre aiming to boost your homeâs value, some upgrades are better than others. Youâll also need to consider whether you feel comfortable with certain DIY projects, or if you prefer to hire a professional.
You could rig-up a picket fence made of the leg lamps from A Christmas Story if you really wanted to, after all, but chances are itâd decrease your property value (if it didnât burn down your house in the process, that is).
Instead, try one of these investment-friendly upgrades, according to the 2020 Cost vs. Value Report from Remodeling Magazine:
- Stone Veneer
- Garage Door Replacement
- Minor Kitchen Remodel
- Replace Siding
- Replace Windows
- Deck Addition
- Replace Entry Door
- Replace Roof
- Remodel Bathroom
- Major Kitchen Remodel
If youâre aiming to boost your homeâs value, some upgrades are better than others.
1. Stone Veneer
Estimated cost: $9,357
Itâs no secret that finding ways to add curb appeal is one of the quickest remodeling wins to increase your homeâs value. Right now, one of the hottest trends is adding manufactured stone veneers to the exterior of your home, generally around the base or as accent walls.
You can DIY this, but it might be better to hire a professional because the materials are expensive. Plus, if you do it wrong, you could waste a lot of money and end up with a wonky result.
2. Garage Door Replacement
Estimated cost: $3,695
If youâre not keen on spending tens of thousands of dollars, a relatively quick win you can go for is simply replacing your garage door with a better model that includes a lifetime warranty. Again, this is one thatâs better left to the pros because itâs an especially dangerous job for newbie DIYers. Besides, installing it yourself is likely to void the warranty anyway.
3. Minor Kitchen Remodel
Estimated cost: $23,452
If you donât mind sitting around in some construction dust for a little while, doing your own minor kitchen remodel is definitely within the scope of DIYers. Itâs also a common home remodel on HGTV and other media.
To reach the value-add touted by the survey, youâll need to replace your oven or cooktop, refrigerator, cabinet doors, countertops, drawer fronts, flooring, and add new paint and trim. It requires a lot of changes, but if you have time to watch a few YouTube tutorials, you can do it yourself fairly easily.
4. Replace Siding
Estimated cost: $14,359 to $17,008
Another big curb-appeal booster is simply replacing your homeâs siding. But not all siding is created equal. Fiber-cement siding costs slightly more and recoups slightly more of the cost. The difference, however, isnât huge and might vary for your individual case.
Vinyl siding is easier to maintain and install, but isnât as fire-resistant as fiber-cement â an increasingly important consideration if you live in the arid West. No matter which type you choose, you might need to rent specialized equipment, like scaffolding, unless youâre an NBA athlete working on a single-story house.
5. Replace Windows
Estimated cost: $17,641 to $21,495
Old, leaky, rackety windows arenât great for curb appeal or energy-efficiency. Thatâs why replacing them can also be a good idea. If youâre nervous about smashing them (and we wouldnât blame you), you can hire a professional. Otherwise, itâs a job thatâs possible for most DIYers.
If you have standard-sized windows, you can get ready-made windows from a home supply store. But youâll likely need to custom-order them to fit your own home.
6. Deck Addition
Estimated cost: $14,360 to $19,856
Decks are one of the easiest home additions to DIY, as long as you have basic carpentry and tool safety skills. You can take your time with decks since theyâre outside of your home and not directly in your everyday living space. Composite decks are slightly more expensive than wooden decks but have the advantage of longevity and less maintenance necessary over the years.
7. Replace Entry Door
Estimated cost: $1,881
Another easy and low-cost project, replacing the front door gives you an instant boost to your curb appeal. Just about anyone can do it with the help of YouTube video tutorials and a good, strong arm.
8. Replace Roof
Estimated cost: $24,700 to $40,318
Your roof is literally the cap to your home. Replacing the roof is a big job, and although hammering in shingles seems easy (and it is), itâs generally best left to the professionals. A professionally-installed roof comes with a warranty, and takes a day or two to complete.
If you DIY this home improvement project, youâll lose the warranty, and it could take you longer to complete the job. And the longer your roofing project lingers, the longer your home is vulnerable to damage.
Another point to remember â metal roofs are far more expensive than asphalt shingle roofs, but they also tend to last longer and require less maintenance.
9. Remodel Bathroom
Estimated cost: $21,377 to $34,643
As long as youâre not making major changes to the plumbing and electrical systems underlying the fixtures, a bathroom remodel is possible on your own. This is an especially common remodel for many DIYers, because along with the kitchen and the bedroom, itâs a daily-use room.
10. Major Kitchen Remodel
Estimated cost: $68,490 to $135,547
If youâre looking to bring a 1950s-style kitchen into the 21st century, itâll take a bit more than some extra spit and glue. Youâll need to make big changes, like adding in a vented range hood for those blackened-fish tacos, new recessed and under-cabinet lighting, new cabinets, and even adding in an island for better cooking options. For that reason, itâs usually better to hire a professional team who can make sure everythingâs wired up right.
Your Mileage May Vary
Here’s something to consider: on average, you’ll only recoup a portion of your cost if you complete the upgrade and then sell your home in the same year. That might seem a bit disappointing â shouldnât you be able to recoup all of the cost, and then some?
Remember, your specific case might be very different depending on a lot of factors, like what area of your home could use work. For example, if your exterior looks tired and the siding is falling off, upgrading that rather than adding a new deck might give you a better payoff.
Another factor affecting your return on investment is how long you let your homeâs value appreciate, before selling it. Adding a stone veneer can help you recoup 96% of your cost in the first year. However, in the second year, consider whether you can boost the value of your home by more than you paid for the upgrade.
If you plan on selling your home in the future, asking a local realtor or real estate investor which upgrades are best for your particular home can be worthwhile. After all, market conditions vary dramatically cross the country and no two homes are exactly the same.
The post 10 Home Updates That Are Worth the Money appeared first on Good Financial CentsÂ®.