Making Financially Smart Home Improvements

Wondering which renovations will give you the best return on investment? There are many ways you can upgrade that will give you the most bang for your buck. When considering which projects to tackle in your home, take these into consideration!

Renovations with Highest Return on Investment

  • Kitchens and bathrooms. Many people buying a house look first at kitchens and baths, and renovations to these areas are more likely to pay for themselves. Skip expensive upgrades such as marble countertops or high-end appliances – instead, make cost-effective enhancements using reputable brands if you need to replace anything. Updating your cabinetry hardware and / or painting cabinets is also a low-cost option for gaining a contemporary look in your kitchen and bathroom.
  • Adding rooms, such as a family room or master suite, also tend to fare well at resale time: bigger homes usually command higher prices.
  • A coat of new paint throughout can give your home’s interior a fresh and updated look.
  • Remember to give your home curb appeal. The exterior is the first thing people see. Make sure your lawn, trees, bushes and garden beds are well-trimmed and edged. Painting your front door can also have a big impact – according to Zillow, homes with gray or black front doors sold for a $6,271 premium.
  • Make sure your roof, eaves and gutters are also in prime shape – most buyers do not want those types of potential complications. Refurbishing and/or expanding an existing deck or patio can also be a good investment, and is often a wiser money move than building a brand-new one.

 

Renovation with Lowest Return on Investment

There are some renovations and upgrades that appear to offer a return on investment, but end up being a nuisance to buyers when it comes time to sell. One of the top renovation mistakes that homeowners make is putting in a swimming pool. While pools offer a nice oasis to relax and entertain, they hardly ever return their cost, because a lot of buyers aren’t willing to shell out more for a house just to acquire something extra they will have to maintain.   

If you’re looking to make upgrades to your home, Blackhawk Bank is here to help. Stop in at one of our banking centers to talk to a Personal Banker about a home equity loan or line of credit.

Sources: thisoldhouse.com, zillow.com, bankrate.com
 
Author:
 
Tammy Zurfluh, NMLS#476483
SVP Mortgage Banking