There are two main reasons for renovating your home: 1. To make it a more enjoyable/safe/efficient place to live; 2. To increase its value or same money over the long haul.
Both are great motivating factors, but not all home improvement projects can satisfy both goals. An in-ground swimming pool, for example, can provide years of fun for a growing family, easily satisfying the first objective. But according to Houselogic.com, pools increase a home’s resale value by only 7 percent – not much when you consider construction, maintenance, and energy costs over the years. Many people conjure images of master bedroom additions and kitchen and bathroom remodeling when they think of home remodeling projects. But the online magazine Remodeling reports that exterior improvements account for nine of the 10 highest return-on-investment (ROI) projects homeowners can undertake.
Not only do window, roof, and siding replacements cost less upfront than modernizing a kitchen and other interior projects, but they also cut down on heating and air conditioning expenses and boost a home’s curb appeal. These are the first things prospective buyers see, and we all know the importance of making a strong first impression. Whether you are thinking about moving or are committed to living in your home for the foreseeable future, there are several exterior improvements you can do that recoup much of the cost through a higher selling price and energy efficiency. Generating the highest ROI starts with choosing the right renovation to target. But it doesn’t end there. The materials used and the contractor you engage to build or install your project will also determine the remodel’s value to prospective buyers.
Highest-ROI Exterior Renovations
While the cost and ROI of any home improvement project depend in part on the home’s age and state of repair, its location, and other factors, real estate professionals agree, and research shows that certain projects deliver higher resale values and energy savings year after year, regardless of
geography or architecture. Minor exterior improvements such as landscaping, steel front door, or new overhead garage doors can add 90 percent to 100 percent of their cost to a home’s market price, these are the major projects experts suggest investing in to create the greatest ROI:
1. Windows
Window technology has come a long way over the last couple of decades, and savvy homebuyers report they are willing to pay more for houses that have newer, “move-in ready” windows in place. In fact, the National Association of Home Builders found that 83 percent deem Energy Star-rated windows essential or desirable in the houses they will purchase. Other research by the National Association of Realtors (NAR) reports that sellers can add 72 percent of the cost of replacing a home’s windows to the selling price with no decrease in prospect interest. Of course, getting rid of old, drafty glass also reduces the opportunity for moisture to infiltrate and cause structural damage that can far outpace the cost of new windows.
2. Covered Patio
You can easily spend $30,000 on a covered patio, but studies suggest less ambitious projects bring the best ROI. Spending $5,000 to $12,000 on a slab and pergola or insulated roof seems to be the sweet spot. Homebuyers place an 8 percent to 10 percent premium on the extra living space. The big savings, however, comes from the 80 percent or more of construction costs owners can save on their utility bills. Not to mention the countless good times you’ll experience under your patio roof.
3. Siding
While most homeowners replace their home’s siding to create a more satisfying and enjoyable setting for themselves rather than with an eye toward selling, NAR’s Remodeling Impact Survey found that top-of-the-line fiber cement siding recovers as much as 76 percent of its upfront cost. The Remodeling assessment ranks fiber cement siding projects as the most ROI-friendly exterior project (68 percent) and No.2 overall among projects returning $15,000 or more in resale value and ownership savings.
Material
In most cases, the more you invest upfront in quality materials and workmanship, the more you can get back at your home’s selling price. That is certainly the case when it comes to siding. As noted above, fiber cement siding returns up to 76 percent. Replacement vinyl siding, on the other
hand, checks in at only 63 percent. The NAR report notes that an average fiber cement siding replacement costs $3,900 more than vinyl but adds $5,000 more than vinyl when homes sell. Installing James Hardie fiber cement siding is one of the most transformative home improvement projects you can do. Long-lasting, insect-, moisture-, rust-, fire-, and fade-resistant, its vibrant colors and precise manufacturing will make any home clad in James Hardie siding the envy of the neighborhood.
Contractor
Insisting on a licensed, insured, bonded, and experienced contractor is one of the easiest ways to maximize ROI on any home improvement project. Choose among licensed builders by examining their online portfolios, checking references, and asking friends and family members for recommendations. Holeman, Inc. is an Elite Preferred JH Siding installer 100 percent devoted to quality workmanship and adherence to the local building codes, industry best practices, and manufacturer’s exacting guidelines. All our technicians and installers have passed James Hardie’s certification for storing, cutting, fastening, finishing, and handling its siding products and are fully trained and educated on the properties that make this fiber cement siding the top choice among South Florida’s discriminating homeowners.