If you are even considering doing home improvements, taking ROI into account beforehand is a wise decision. What will you make your money back on? Will spending this much over improve my home? How should I prioritize my remodel? These questions and more will be answered as we discuss how to increase your home's ROI.
According to Remodeling Magazine (http://www.remodeling.hw.net/) you're less likely to recoup your investment in a major kitchen or bathroom remodel than you are to get back what you spend on basic home maintenance such as new siding. Surprising, isn't it? This is because home buyers are afraid of maintenance costs. They don't want to move in and have to replace a roof or repair the siding. So, believe it or not, you may make more money back on simpler improvements.
Location, Location, Location
It seems cliché, but it's true! The improvements you make to your home, and the corresponding ROI, are often dependent on your location. For example, you would not want to put a $3,000 kitchen sink in a $150,000 home. It doesn't make sense, you wouldn't see a return. Additionally, in most areas, kitchen and bathroom remodels see over 100% return, due to a couple of factors:
1. These are the most expensive areas of a home in terms of construction.
2. These are the areas where people generally spend the most time.
What Should You Choose?
So, when remodeling, what should you choose? This is largely dependent upon when you see yourself moving. If you think you'll be there awhile, choose to remodel with things you love (within reason, of course), or colors that go with your current decor. However, if you plan on moving soon, choose neutral colors and traditional looks that would typically satisfy the majority of people.
There's another home improvement feature that easily generates ROI that may also surprise you... ...but you have to take a look at Part 2 to see what it is!