Brought to you by Preferred Properties
Home improvement projects have always been a great way to enhance the comfort and enjoyment of one’s home. They can also be an excellent option for helping increase the property value and stay competitive in the local real estate market. For those toying with the idea of a home improvement project, some projects have a much higher return on investment than others. For 2024, these are the top interior and exterior home improvement projects with the highest return on investment according to the National Association of REALTORS® 2022 Remodeling Impact Report.
Top 5 Interior Remodeling Projects for 2024
1. Hardwood Flooring Refinish (147% ROI)
Hardwood flooring is something many buyers look for in a property. If your current home has hardwood floors, the number one ROI project is refinishing your home’s hardwood floors. Essentially a facelift – this procedure helps remove or improve signs of discoloration, scratches, and even signs of water damage. The return on investment for this project was estimated at 147% which makes it an excellent choice for a home improvement project.
2. New Wood Flooring (118% ROI)
Floors are an integral part of a property. Buyers want durable and long-lasting materials in their homes and wood is a solid choice for durability and quality. New wood flooring scored high on NAR’s report, at 118% return on investment. If you’re looking to add value to your property, consider installing new wood floors.
3. Insulation Upgrade (100% ROI)
More homeowners are looking for ways to increase their home’s energy efficiency, and one option is an insulation upgrade, especially for older homes that don’t have enough insulation. Whether attic insulation, wall insulation, or basement and crawlspace insulation – this upgrade saw a 100% return on investment. Not only will this make your home more energy efficient, but it will also save you money in the long run.
4. Basement Conversion to Living Room (86% ROI)
Adding usable living space and improving the livability of one’s property is an excellent way to not only attract more potential buyers, but a great way to increase the value of your home. A basement conversion may seem like a large project, but in terms of return on initial investment, NAR estimated an 86% ROI, making it a top option for those looking to remodel or increase property value.
5. Closet Renovation (83% ROI)
Storage is an important and often sought-after feature for homebuyers, and having ample usable storage will make a property stand out. Renovating a closet by adding features (shelving, drawers, etc.) or improving overall usability ranked high on the remodeling impact report, coming in at an 83% return on investment.
Top 5 Exterior Remodeling Projects for 2024
1. New Roofing (100%)
A property’s roof is one of the most important parts of its structure, and buyers look highly on properties that have had improvements done to make the home more sound. Adding new roofing is the process of applying a new layer of roofing material over the existing layer (also known as an overlay). Re-roofing is dependent on the condition of the existing roof, but any improvements to a property’s roof will see a high return on investment (100%), and re-roofing is often a more economical option than a completely new roof.
2. Garage Door (100% ROI)
For many homes, the garage door is one of the first things you see on a property. An old, worn-out garage door can be an eyesore, especially for potential buyers. A new garage door is a quick project that can be done for a relatively small investment (when compared to other projects). A new door will look nice, attract buyers, and will have a great return on investment: 100%.
3. Fiber Cement Siding (86% ROI)
Another important and integral part of a property is siding, or the protective material attached to the exterior of the structure that defends against weather, impacts, and other intrusions like insects. Upgrading to fiber cement siding (a durable, long-lasting, and low-maintenance material made of cement, sand, water, and cellulose fibers) can see a high return on investment – 86% according to NAR’s 2022 Remodeling Impact Report.
4. Vinyl Siding (82% ROI)
If fiber cement siding is not an option, the next best option is vinyl siding – a durable, plastic exterior wrapping that can imitate wood and is used for both decoration and weatherproofing. For homeowners that chose to add new siding (both vinyl and fiber cement), 93% had a greater desire to be at home after completing the project. Whether you’re choosing new siding for adding value or another personal reason, many homeowners see a good return on investment for this project (82% for vinyl siding).
5. Vinyl Windows (67% ROI)
Windows can take a beating, and they tend to show their wear, especially older windows. Vinyl windows, or windows made of polyvinyl chloride (PVC), are windows made from a synthetic plastic material, making them resistant to rot and decay, meaning they will retain their efficacy throughout the years. Vinyl windows are also energy efficient, making them a top choice for homeowners looking to increase the efficiency of their homes. If your home has a lot of windows, the cost to replace them can be high – but for those looking to make the switch, you can see a potential 67% return on investment.
Remodeling and home improvement projects don’t need to be a complete overhaul of your property – you can choose what best fits your budget, time frame, and ultimately how you’re looking to improve your home. Just be aware that some projects will have a higher return on investment than others. If you’re looking to sell soon or in the future, a project with a high ROI that will boost your property’s value is an excellent option.
This article was brought to you by Preferred Properties. With over two decades of real estate experience and training, Barb utilizes her knowledge and expertise to help her clients successfully navigate life’s toughest transitions. Visit their website at PreferredPropertiesVT.com.
Free Subscription to Vermont Maturity Magazine
Comment here