Whether you are planning to refinance, sell your home or just want to choose to focus on the improvements that will give you the most bang for your buck, you’ve come to the right place. Renovations can make a world of difference in the way you and others feel about your home, but it’s crucial to understand the return you can expect from your next project.
The 2021 Cost vs. Value Report from Remodeling magazine put in the legwork for you. The report, which analyzes nationwide cost data, determined that the following projects are some of the best remodels that you can take on to increase your home’s resale value:
Garage Door Replacement
Determined based on an insulated four-panel garage door with windows and updated safety features, this project will not only provide your home with instant curb appeal, but it can get you 93.8 percent back on your investment. With a return like that, this project tops the list.
- Average cost: $3,907
- Average resale value: $3,663
- Cost recouped: 93.8%
Minor Kitchen Remodel
You don’t have to completely gut and replace your kitchen to give the space an updated, modernized, and functional appeal. Based on estimates to replace outdated appliances, new cabinet fronts and hardware, countertops, flooring, and fresh paint, you can enjoy a beautiful home upgrade that will produce a 72% return on your investment!
- Average cost: $26,214
- Average resale value: $18,927
- Cost recouped: 72.2%
The addition of a beautiful outdoor entertaining space is a surefire way to add appeal and value to your home. Based on a project that uses pressure-treated wood, built-in seating spaces, planters, railings, and stairs, you could see a significant return on a new deck project.
- Average cost: $16,766
- Average resale value: $11,038
- Cost recouped: 65.8%
Paying for Home Renovations
Renovating the spaces in your home is a wise investment that will increase the value of your home and bring you returns when it comes time to sell. While the best home renovations for resale can be expensive, the good news is that there are several ways you can pay for them.
Home Equity Line of Credit
A home equity line of credit is a type of second mortgage that allows you to borrow money from the bank based on the equity that you already have in your home as a line of credit.
Home Equity Loan
A home equity loan, often referred to as a second mortgage, has a fixed interest rate and is paid out in a lump sum and repaid over a predetermined duration.
In a cash-out refinancing scenario, you replace your current mortgage with a new, (and larger) loan and receive cash that you can use for your renovations.
A Home Remodel Loan
Home remodeling loans are simple, unsecured, personal loans that you can obtain through a bank, credit union, or online lender.
While it is always an option to use personal credit cards to cover small remodeling expenses, this option isn’t ideal. High credit card interest rates will only add to the expense of your project.
Taking on home renovations can be a daunting task. Fortunately, NVS Kitchen and Bath offers over 30 years of remodeling experience to help you choose and design the projects that will help you increase the beauty and value of your home. Get in touch with our team today and let us know how we can help you.