When you start the home renovation conversation, you may automatically start imagining brand new bathroom tiling, modern kitchen flooring, and a decked out attic space. If you want to get the best return on investment (ROI), however, think again.
It seems as though the most profitable renovations are not the sexiest, according to Remodeling’s 2017 Cost vs. Value Report. As it turns out, you’ll get the best return when tackling the less popular upgrades, from attic insulation to appliance replacements.
Below are the four best home renovations to do in 2017, according to Remodeling’s newest report. Add these to your to-do list for spring, summer and fall to re-coup the most cash while giving your home the facelift it needs.
Attic Insulation (Fiberglass)
Installing fiberglass is no fun, which is why you need to hire a professional. Despite the job costing $1,343, on average, you’ll recoup 107 percent of that, with a resale value of $1,446. You’re probably wondering, despite the high ROI, why attic insulation is so high on the list—number one, in fact, in Remodeling’s report.
New or reinforced insulation will help eliminate air leakage. This lowers cooling and heating costs, allowing you to save money immediately upon installation. Use the CIMA Insulation Savings Calculator to see exactly how much you’ll save.
Don’t forget to refer to the Energy Star guide for Insulation R-Values (the measure of the insulation’s ability to resist heat traveling through) by region. The professional should know this, but it’s always best to educate yourself beforehand.
Minor Kitchen Remodel
Despite being the most expensive renovation on this list ($20,830), you’ll see an ROI of 80 percent if you do it right. The question is: What’s a “minor” kitchen remodel exactly? The Remodeling report suggests focusing on a few upgrades in particular:
· Replace front of cabinets with new shaker-style wood panels and drawer fronts (don’t replace cabinets altogether).
· Replace combination cooktop/oven range with new, energy-efficient appliances.
· Replace laminate countertops.
· Update your sink and faucet with a mid-priced option.
· Repaint trim, add wall covering and install resilient flooring.
Those “minor” upgrades add up fast, but in the end, the re-sale value adds up too, coming out to $16,699—an 80.2 percent return on investment. Focusing on these minor changes rather than doing an entire remodel also saves you nearly $40K up front, not to mention the time and energy that goes into planning and executing a renovation of that magnitude.
Consider some of these less interesting renovations this year to get the best return on investment. Before renovating, use this Home Value Estimator to get a sense of what your home is worth now. When it comes time to sell, and get your home re-appraised, you’ll see exactly how much your renovations have made you.
When that magic number appears, you’ll forget all about the long hours you spent refinishing cabinets because it was worth it in the end.