When planning a home renovation, it can be tricky to know what will have the greatest payoff. Before you and your family begin an extensive project, take a look at renovations or remodels that have the greatest return on investment (ROI). ROI is a financial ratio used to evaluate the profitability of an investment. It’s calculated through several factors: location, project type, timing, and the real estate market.
Replacing your garage door can have up to 90% ROI. When looking for new garage doors, think about your home’s curb appeal. You’ll want something that matches the aesthetic of the home’s exterior but is still functional. If you’re planning on using your garage for more than just storing your vehicles, such as a play-area or workshop, consider investing in double- or triple-layer doors for security, soundproofing, and insulation.
A home’s windows and doors can affect other aspects of the home, such as insulation, energy efficiency, and overall aesthetics. Although this renovation can be costly with an average 65% ROI, the benefits outweigh the initial cost. Having more energy-efficient windows and doors has the potential to save money on heating and energy while appealing to eco-conscious homebuyers.
Improving your siding can save money on maintenance, heating, insulation, and increase your curb appeal. Experts recommend fiber-cement or vinyl siding for up to 70% ROI. Replacing your siding is an excellent way to add value and helps to protect the structure of your home. If siding is installed incorrectly or becomes damaged, it can lead to major water damage that can cause a domino effect of problems. Air-tight and updated siding can minimize this risk.
Renovations that increase the home’s value are the most tried and true way to get a positive return on investment. If you’re planning renovations before selling your home, it’s important to speak with professionals with knowledge about the local market. Contact us today to find out how our knowledgeable Loan Originators can make your home financing dreams a reality.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.