When you’re making improvements to your home, you’re not just making your life better in the short term. You’re also making an investment in your future. Ideally, the increase in the value of your home will exceed the investment cost of improvement.
Here are three home improvement projects that can increase the resale value of your home. They’re excellent uses for your home equity line of credit and you may be able to save money by doing part or all of them yourself! Also be sure to consult your tax adviser to determine if these improvements apply for tax deductions.
1. Replace the Front Door
There’s an old adage in real estate that suggests the features get tours, but the front porch gets sales. People make decisions on home-buying all the time by starting with a gut reaction and finding reasons to support it later.
Why not start your home remodeling project with the first thing you interact with on your house: the front door. Upgrading an old, poorly-fitting front door with a newer energy-efficient model is a cheap, quick project that can instantly improve your home’s efficiency and aesthetic appeal. Best of all, hanging a door can be done in an afternoon!
With an average price of just over $1,200, including labor, an energy-efficient front door has a Return on Investment (ROI) of 98%! It’s also a chance to be creative. A new front door can add a splash of color, and window placements can break up a monotonous front profile.
2. Make Minor Kitchen Renovations
Replacing major appliances and installing new flooring is a difficult, time-consuming and expensive task. Being without a kitchen for weeks on end can be a nightmare, and the number of professionals needed to install new lighting and other features is mind-boggling. The national average for spending here is $57,000, and the ROI for major kitchen remodeling isn’t great, at only 68%.
Minor kitchen upgrades, like new cabinets, counter-tops and energy-efficient cook-tops, are comparatively inexpensive. The average spend here is just under $20,000 with an estimated return on investment at an impressive 80%. The changes are typically aesthetic, but research shows that people perceive more modern-looking kitchens as being a better fit than a “retro” look.
This is also a chance to customize a place where you spend a remarkable amount of time. Having a kitchen laid out just the way you like it can make it easier and more enjoyable to cook. This will encourage you to eat more meals in, and energy-efficient appliances can lower your electric bills for the life of the home.
3. Add Insulation
For most homeowners, attic insulation is an afterthought. But this investment has one of the highest ROIs for Arizonans.
Regionally, the average cost for added insulation is just over $1,300. That includes the purchase of midrange fiberglass material, as well as the cost of hiring a professional to seal the space and distribute the insulation appropriately.
In 2017, added insulation had an average return of 179% in the Phoenix-Metro Area! If you haven’t considered this project, right now is great time to do so while the weather allows. Measure your attic insulation first and compare it to the recommended height for Southwest climates. Chances are, you could make a sound investment by adding more insulation to your home.
When you’re ready to start your next home renovation project, visit us at online at www.cuwest.org/homeequity, call 602.631.3479, or stop any of our convenient branch locations to learn more about your home equity loan options.