Five Home Projects That Boost Your Home’s Resale Value
If you’re thinking about making improvements to your home—or even selling it—choosing the right projects can significantly boost your enjoyment of the space and its resale value. However, not all home projects offer the same payback or return on investment (ROI). Understanding which upgrades provide the most bang for your buck can help you make informed decisions. Here are five home projects that typically offer substantial payback and tips for strategically approaching your home improvements.
1. Kitchen Remodel
The kitchen is often considered the heart of the home, and it’s one of the first places potential buyers look at when considering a purchase. A modernized kitchen can offer an impressive ROI, recouping up to 75% of your investment. Focus on updates that blend style with functionality, such as new countertops, energy-efficient appliances, and updated cabinetry. Even smaller updates, like new hardware or a fresh backsplash, can make a big difference without breaking the bank.
2. Bathroom Upgrade
Bathrooms are another critical area that can greatly influence a buyer’s decision. Whether you’re considering a complete remodel or simple updates like new fixtures, fresh paint, and improved lighting, a bathroom facelift can return up to 70% of your costs. Consider adding modern touches like a walk-in shower, double vanity, or updated tile work. These improvements not only enhance the look and feel of the space but also appeal to a broad range of buyers.
3. Curb Appeal
First impressions matter, and that’s why curb appeal is so important. Various exterior updates, such as landscaping, fresh paint, or new siding, can recoup up to 100% of your investment. The goal is to create an inviting, well-maintained exterior that makes potential buyers eager to see what’s inside. Remember, you don’t need to spend a fortune—sometimes, small changes like trimming bushes, planting flowers, or power washing your driveway can make a substantial impact.
4. Energy-Efficient Improvements
With rising energy costs, buyers are increasingly interested in homes that offer energy savings. Installing energy-efficient windows, solar panels, or upgraded insulation can provide up to 80% ROI. Not only do these improvements make your home more attractive to eco-conscious buyers, but they can also lower your utility bills while you’re still living in the home. Highlight these features when selling, as they can be a significant selling point.
5. New Flooring
Worn-out floors can be a dealbreaker for many buyers. Replacing old carpet or outdated flooring with new materials like hardwood, laminate, or tile can give you back up to 70% of your investment. Opt for neutral tones and durable materials that appeal to a broad audience. Even refinishing existing hardwood floors can yield a high ROI by enhancing the home’s overall appearance and making it move-in ready.
Putting Thought into Your Projects
While these projects generally offer good returns, it’s essential to approach home improvements with a clear understanding of your goals. Not every project will pay for itself, and that’s okay—as long as you recognize that from the start. If you plan to stay in your home for a while, investing in projects that bring you joy or improve your quality of life is perfectly fine, even if they don’t have the highest ROI.
Financing Your Home Projects
If you’re ready to start a home improvement project, Mercer County NJ Teachers’ FCU can help. A Home Equity Loan is an excellent option for financing these updates, offering competitive rates, low APR, and flexible terms. Additionally, when you use a Home Equity Loan for home improvements, you may be eligible for tax deductions on the interest paid, making this option even more cost-effective. With the right financing, you can increase your home’s value and enjoy the benefits of your improvements without financial strain.
Invest Wisely, Enjoy Fully
Investing in home improvements is a smart way to boost your resale value, but choosing projects that align with your financial goals is a key consideration. By focusing on upgrades like kitchen remodels, bathroom upgrades, curb appeal, energy-efficient improvements, and new flooring, you can enhance your home’s appeal and get a solid return on your investment. And remember, it’s okay to pursue projects that make you happy, even if they don’t have the highest payback—just be sure to plan accordingly.
Ready to start? Learn how an MCNJTFCU Home Equity Loan can help finance your next project. Visit our home equity page to learn more, or call 609-586-6669 to get started.
*Statistics are based on industry reports, including Remodeling Magazine’s Cost vs. Value Report and National Association of Realtors (NAR) insights.
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