May 13, 2020
A remodel can be a great way to update or upgrade a home, add living spaces and conveniences matched to your age and lifestyle, and raise your quality of living. The completed project’s added value worth the total renovation costs involved—especially if you’re borrowing money to do it?
Ideally, the worth of a remodel will approach or even exceed the cost of the remodel. More realistically, the worth of the remodel will represent a significant percentage of the cost of the remodel—the portion of your investment that you’ll be able to recoup when you sell your home.
Where to Invest Your Home Renovation Money
If you’re like most homeowners—working within budgetary constraints—you want to be certain that your upgrades will add to your bottom line no matter who’s buying. So we’re sharing what we consider to be some of the best home investments that you can make for your house, whether you’re in Louisiana or beyond.
Exterior Cladding: Home exteriors matter. That’s mainly because both first impressions and protection from weather elements are important to buyers. Fresh cladding with durable, superior-quality materials like fiber cement lap siding consistently offer a solid return on investment. Using manufactured stone veneers is typically a little pricier, but the likelihood of recouping the total costs of the installation is greater, too.
Entryways and Garage Doors: Since there’s no substitute for curb appeal, front doors and garages really do make a financial impression. With a front entryway costing on average around $2,000 and garage doors closer to $3,500, it’s nice to know the replacement will be worth just about every penny — and then some.
Kitchens: Houses with beautiful, modern kitchens tend to sell more quickly. The trick to recouping the value of your actual investment in a kitchen is to stick to the basics and be wary of high-end luxury makeovers dependent on personal taste and style. Midrange remodels around $20,000 offer the best values, with return margins narrowing proportionally as major-remodel price tags cross the $60,000 mark. However, new standard appliances, quality countertops, fresh lighting and premium flooring hit the high points that most people are looking for — and they won’t break the remodel budget.
Bathrooms: Again, midrange remodels typically offer the best return on investment because they stay around the $20,000 price point. That figure usually takes care of the basics that most buyers will want and are willing to pay for, adding identifiable value. Luxury remodels can rapidly escalate in cost, as can the addition of a whole new bathroom. When costs start crossing $40,000, $50,000 or even more, the return in value may be proportionally less. The most desirable bathroom updates include tiled showers, garden tubs, modern fixtures, quality countertops with ample space, dual sinks and fresh flooring.
Decks & Landscaping: Buyers care about their outdoor spaces too! The more inviting you can make your home’s surroundings, whether that be back patio seating or added flower gardens, the better chances you have to catch the eye of potential buyers. Decks are a great option as well, considering their relatively low costs. Whether constructed of pressure-treated wood or high-tech, low-maintenance composite decking, custom decks are highly desired features that will hold the value of your investment.
Master Suite: Adding a master suite can be one of the most expensive remodels because you’re essentially adding a small apartment complete with new plumbing, HVAC service, electricity, a slab or foundation, and most likely a roof as well. Modest standard remodels can easily average $100,000, with upscale versions double or even triple that. However, much like baths and kitchens, sticking to more practical updates that incur smaller investment sums will translate more readily into a home’s value than a major, high-end master suite remodel.
Ready to Renovate?
Ultimately, the best home investments are the ones that you really want — the ones that you feel are worth your investment in costs, effort and time. If you enjoy the improvements, chances are, potential buyers, agents and appraisers will appreciate their value too.
If you’re ready to start planning a home remodel that’s worth the cost, check out your renovation financing options at La Capitol Federal Credit Union. We can help you secure the money you need to complete a remodel that’s worth the investment.
Disclosure: Equal housing lender. NMLS #411413.