5 Renovations to Add Home Value

August 31, 2020 By ,

If you’re anything like us, you’ve found yourself completely sucked into home renovation shows over the past few years. Every time you think Chip and Joanna Gains might finally be in over their heads after seasons of creating stunningly modern masterpieces, they manage to wave their magic renovation wands and the house is perfect.

So, what’s the deal here? Are these home renovations really worth the time and effort? Lucky for you, we’ve done the research and compiled a list of realistic and affordable changes you should invest in if you’re looking to increase the value of your home.

Garage Door Replacement

We know what you’re thinking. Really? Why should I replace my garage door? According to Bank Rate, replacing an outdated 16-by-7-foot garage door with a four-section door increases curb appeal without breaking the bank. With close to a 95% cost recoup, this project is worth every cent you spend. Need inspiration? See a few ideas on our Pinterest.

  • Average Cost: $3,695
  • Average Resale: $3,491
  • Cost Recouped: 94.5%

Minor Kitchen Remodel

Before you go ripping up floorboards or tearing out cabinets, we want to define what we mean by minor kitchen changes. Remodeling your space doesn’t have to be a significant change. Decide on what theme or feeling you want the room to invoke and star there. New barstools, a fresh coat of paint, or swapping out the kitchen sink could make the difference you’re looking for.

If you need a full kitchen renovation, bigger changes (such as appliance upgrades or new flooring) might be a necessary expense. For a minor kitchen remodel (less than $24,000), your average cost recoup is about 78%. However, for many people, the kitchen is a space where countless meals are prepared and shared with friends or family. Who could put a price on that?

  • Average Cost: $23,452
  • Average Resale Value: $18,206
  • Cost Recouped: 77.6%

Siding Replacement

Speaking of curb appeal, your house might need more than just a new garage door. Old, worn down siding can completely change the first impression people have when seeing your home for the first time. (Homeowners in the PNW should highly consider this renovation, where wind and rain have a greater effect on the outside of your home.)

On average, the cost to replace the siding of a 1,250 square home will cost about $17,000, with an average recoup of nearly 78%. This may seem like a costly change to only see a third of your investment returned in the value of the home, but this aesthetic improvement could help your home sell faster if you decided to sell.

  • Average Cost: $17,008
  • Average Resale Value: $13,195
  • Cost Recouped: 77.6%

Bath Remodel (Mid-Range)

When you walk into your bathroom, what do you see? Do you see things on the counter or cracks in the tile? These are small giveaways that you might consider making small renovations to your space, such as adding shelves for storage or replacing the floor. On the other hand, outdated cabinets or rusty showerheads will also decrease the value of your home.

We recommend looking at small changes first. Could you replace the cabinet and drawer handles to change up the style, or do you need to replace the wood? If you need a more significant change, consult a specialist. When it comes to water pipes and sewage lines, you don’t want to make a mistake. For full renovations, the average cost is about $20,000, with a cost recoup of 67%.

  • Average Cost: $20,420
  • Average Resale Value: $13,717
  • Cost Recouped: 67.2%

Backyard Patio

If you love warm weather, BBQ’s outside, and a cold drink in the backyard, chances are you already have a designated patio area. If you don’t have an updated space, but you’re looking to add value to your home, the backyard might need to be your most prominent area of focus.

Creating a lovely patio space can range from building a wooden deck, replacing or updating outdoor furniture to increase space appeal, or hiring someone to power wash the surfaces. If you need additional services outside of just the patio area, such as extensive landscaping or pool repair, this should be taken into consideration. At an average of $56,000 in costs with only a 55% return on your investment, this could be the costliest home renovation you do.

  • Average Cost: $56,906
  • Average Resale Value: $31,430
  • Cost Recouped: 55.2%

Whether you’re replacing the kitchen counters or building an entire deck, PacRes has loan options to help you create the home of your dreams. Contact us today for more info.

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