As the spring housing market picks up steam, homeowners are once again turning their attention to home renovation projects. While the frenzy of the pandemic-era may have cooled off slightly, the investment in home spaces is still significant. According to the 2024 Cost vs. Value report from Zonda Media, some projects are now offering the highest return values in history. This is a promising sign for homeowners looking to increase the value of their properties.
In the world of home renovation, it seems that the focus has shifted from lavish kitchen and bath remodels to projects that enhance curb appeal. The report from Zonda highlights that nine out of the top 10 projects with the highest return on investment are related to exterior improvements. Projects like garage door replacements and steel front door upgrades are now delivering returns of nearly 200%, a significant increase from previous years.
While some projects can offer substantial returns, it is essential for homeowners to be strategic in their renovation efforts. With rising costs for construction labor and building materials, not every project will result in a significant increase in home value. According to Clay DeKorne, chief editor of Zonda’s JLC Group, exterior replacement projects continue to be the most sensible choice for adding resale value to a home. However, only a select few projects, such as garage door replacements, steel front door upgrades, and stone veneer installations, can typically deliver a 100% return on investment.
When it comes to choosing renovation projects, it is crucial to consider both the cost and potential return on investment. While minor kitchen remodels like painting and updating the backsplash can offer high returns, major upscale kitchen and bathroom remodels may not be as lucrative. Experts like Angelica Ferguson VonDrak emphasize the importance of focusing on practical upgrades that add value to the home, such as HVAC conversions, new roofs, and windows. These “un-sexy” upgrades may not be as glamorous as designer kitchens, but they can make a significant difference in the resale value of a home.
To ensure that you are making the most of your renovation budget, it is advisable to consult with a realtor in your area. A real estate professional can provide valuable insights into which renovations are likely to increase the value of your home and which ones may not be worth the investment. In some cases, projects like adding a pool can pay off significantly, while in others, they may not yield the desired results. Ultimately, a strategic approach to home renovation is key to maximizing the return on investment in today’s competitive housing market.
While the landscape of home renovation may have evolved, the potential for maximizing ROI remains strong. By focusing on practical upgrades that enhance curb appeal and consulting with experts in the field, homeowners can make informed decisions that will increase the value of their properties. With careful planning and strategic investments, it is possible to achieve significant returns on home renovation projects in 2024.
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