With mortgage rates and home prices at all time highs, 2024 just isn’t looking like the time to buy a home. However, that doesn’t mean you can’t invest in the one you already have, or even purchase a home in need of some, or substantial work.
A survey released in early May by Discover Home Loans found that more than half (55%) of American homeowners would rather renovate their current home than move to a new one. This is leading to a surge and significance in repairs and renovations.
Many home improvement projects are seen as pricey (updating a kitchen, installing a new deck, remodeling a bathroom), such improvements can actually boost your home’s worth, leading to a higher sales price when time to sell or refinance.
So before you make the decision to begin a remodel, it’s important to know the kind of return on investment (ROI) you can expect – from cost to value and appreciation.
According to Bankrate, Each year, the respected trade publication Remodeling analyzes the costs of major home renovations, estimating the value those projects offer at resale. Released in April, the “2024 Cost vs. Value Report” compares the average cost of 23 remodeling projects in 150 markets throughout the U.S, with three offering a return on investment (ROI) of 100 percent or more. That means they will pay for themselves when it’s time to sell or refinance your home, because they will increase your home’s worth and the asking price when you put it on the market.
Here are the eight home remodeling projects that nationally deliver the highest returns on investment, according to the report. Many involve the outside of the home: “Historically, the exterior replacement projects tend to do much better at increasing home sale prices than discretionary indoor projects,” notes Clayton DeKorne, chief editor, JLC Group, Remodeling’s parent company. “The replacement projects contribute to a home’s curb appeal, which affects a buyer’s first impression.” But they’re practical, too, he says: They also affect the building’s resilience to weather, which reassures buyers about the condition of the residence.
So if you’re thinking of listing your home, these are the renovations that should top your to-do list. Of course, they’re also good to bear in mind if you want to increase your home’s worth for other reasons — say, to build your home equity stake for future borrowing — or just to enhance your life.
