With summer almost here, homeowners are starting to get the itch to work on home improvement projects. Home improvement projects are great not only to give your home a new look but can also add a lot of value to your home. If you plan on ever selling your home in the future, there are a few specific renovation projects that can add a ton of value to your home.
Before you get started on your projects, you’ll have to think about how you’ll be funding them. Homeowners typically plan to spend more than $10,000 on a home renovation. If you are planning a home renovation but don’t have the funds saved up, you’ll have to look into getting a home loan. Here are some options for financing your project, as well as the best home renovations for return on investment.
Home renovations are not cheap. Whether you just want your forever home to get a new look, or you’re renovating your home and preparing to sell it, you’ll need some serious funding to get them done. Unless you have been specifically saving for these projects, you may not have enough money set aside to do everything you’d like to. This is where loans come in. As you consider which loan option is best you’ll also want to think about which projects are the best home renovations for return on investment. Here are a few financing options you could consider to get the funding for your projects.
- Personal Loans:
A personal loan is a great option for a small to mid-size home renovation project. They’re easy to find as you can apply through a bank, credit union, or online lender. Make sure to take some time before you apply to compare interest rates, fees, repayment terms, and payout.
- Home Equity Line Of Credit (HELOC): A HELOC is a secured loan that is backed by your house. Because it’s a secured loan, you can qualify for lower interest rates than you may be able to with a personal loan. This is a good option for anyone doing a large scale or ongoing renovation. A HELOC is a revolving line of credit, so you can take out however much you need, whenever you need it. Because of how flexible it is, this is one of the more conventional home loans for home renovations.
- Home Equity Loan: A home equity loan is more commonly known as a second mortgage. It’s paid out in one lump sum and you make fixed monthly payments on it for a set number of years, just like a regular home mortgage. One of the benefits of a home equity loan is that you don’t have to worry about the interest rate fluctuating with the market. Once you lock in the interest rate, you pay that same amount throughout the life of the loan. This is great for someone who knows exactly how much they need for their home improvement project. However, you will need to be careful as missing too many payments could lead to foreclosure on your home.
As you consider which type of loan to get, you will also want to consider which projects are the best home renovations for return on investment. Especially if you are taking out a loan to complete the project, you want to make sure that the work is adding to your home’s value in the long run.
Best Home Renovations For Return On Investment
One of the best home renovations for return on investment is a kitchen remodel. According to a recent report, a renovated kitchen could yield a 60%-120% return on investment. Because the kitchen is one of the highest traffic areas in your home, keeping it new and up to date is important, not only for you but for potential future buyers.
One big mistake homeowners make when they start a kitchen remodeling project is to go trendy with their approach. While there are some newer ideas that could prove valuable, such as smart appliances or energy-efficient options, remember that not everyone has the same style. The way you redesign your kitchen could greatly impact its sellability in the future. Stick to a clean classic look for the foundation and then if you’re still missing your trendy elements, add them in decor that is easily removed when the time comes. If you’re working with a company that provides kitchen remodeling services, they’ll be able to recommend the most classic options for your kitchen. You don’t want to invest a lot of money into a trendy kitchen that future buyers wouldn’t like or won’t buy.
If you do choose to install new smart appliances, make sure that you have the contact information for a company in your area that does appliance repairs. The last thing you want is to have a beautiful new kitchen with appliances that don’t work correctly.
The perfect time to check on some of the functioning parts of your kitchen is during a home renovation. As you’re taking apart cupboards and drawers, you may as well check things like the plumbing to make sure there are no leaks or water damage. If you are having problems, get a plumber out right away to check on your kitchen sink plumbing and fix the issues because the damage spreads.
If you aren’t ready for a total kitchen renovation, there are still a few small changes you can make that will have a big impact. You’ll be surprised at home much of a difference a coat of paint can make. You can either paint the walls in your kitchen or even give your cabinets a new look with some paint. Changing out the hardware for your cabinetry can also have a big impact on the overall look. Even small changes like this can yield a great result. Take the time to really create a beautiful space with your kitchen. There’s a reason it’s one of the best home renovations for return on investment.
After kitchen renovations, bathroom renovations are the second-best home renovations for return on investment. Bathrooms can take quite a beating and need consistent cleaning and work to keep them in good shape. That’s why a bathroom renovation can yield a 74% return on investment. If your home has fewer bathrooms, you may even consider adding an additional bathroom if you have the space to add even more value to your home.
Similar to a kitchen remodel, you want to stick to a classic look, nothing too trendy. There are quite a few additions or changes you can make to really skyrocket your return on investment. Depending on the type of flooring you have in your bathroom, you may want to hire a team to help with any water damage restoration that is necessary. You’ll also want to catch water damage quickly as the more it spreads, the bigger the issue becomes.
Another basic but important option would be having a plumber come check over and fix any issues with pipes that could cause future water damage. The last thing you want is to renovate your bathroom and then have to rip up flooring due to water damage.
Speaking of flooring, another popular change that could add value to your bathroom would be replacing any pre-existing floor with tile flooring. Tile is one of the best flooring options for a bathroom as it’s waterproof and a cost-effective option. It also comes in a variety of looks so regardless of your style of color scheme, tile should be able to match. If you don’t have experience installing flooring, you’ll want to turn to professional help to make sure that it’s done correctly. Lookup bathroom remodeling services in your area to find a team that can help give your bathroom a facelift.
If a bathroom remodel is the only project you work on in your home this summer, rest assured that it’s one of the best home renovations for return on investment and will add great value to your home in the long run.
Even something as basic as replacing the windows in your home is considered one of the best home renovations for return on investment. Windows have a surprisingly large impact on quite a few aspects of your home. According to HGTV, you can recoup 60%-90% of your cost when investing in energy-efficient windows. You can also qualify for a 10% green energy tax credit if you install Energy-Star rated windows.
Energy-efficient windows aren’t only great for the value they add to your home, they’ll also save you money throughout the year. According to Energy Star, switching to energy-efficient windows can save you around $500 a year on heating and cooling costs. With statistics like this, it’s no wonder why replacing old windows for energy-efficient options is one of the best home renovations for return on investment.
Another window related home renovation project that will add value to your home is installing automated window shades. Technology now allows you to open your shades with the click of a button, and you don’t even have to be at home to do it. You can use your phone to make sure your shades are closed while you’re at work, and open them as you pull into the driveway at the end of the day. Automated window shades can also help you save on your heating and cooling bills. Closed shades during a hot summer day will keep the air cool inside and keep your AC from working harder and raising your bill.
One of the less commonly thought of but equally valuable home renovation options is to focus on your different home systems, such as HVAC, water heater, and a central vac if you have one in your home.
Because an HVAC system is out of sight, unfortunately, it’s also often out of mind. But this can be a costly mistake to make. Especially if you are changing the layout of your home with other renovation projects, it’s likely that the design of your HVAC system will need to change as well. If you’re making changes to the layout of your home, ducting will be affected which changes how heating, cooling, and ventilation reach all parts of your home.
If you are changing elements of your home to be more energy-efficient, like your windows or insulation, the heating and cooling needs of your home may change as well. This could require a different sized furnace and air conditioner. Having a furnace and air conditioner that are too large will directly impact your day to day atmosphere in your home. A larger furnace also means more energy use which converts to a higher monthly bill. While you’re doing any home renovations, make sure to get an HVAC service company to check out your system and help you make changes if necessary.
Whether it’s a total kitchen remodel, or a renovated HVAC system, these are some of the best home renovations for return on investment. Remember as you go through the home renovation process to not only consider your financing options but also to focus on the projects that will add the most value to your home. If you’ve considered both of these elements, your project is sure to be a success.