What’s this project worth?
It’s a make-or-break question facing every American homeowner weighing diving in on a home improvement project this summer. For there is arguably no greater evaluator of the success of a project than its return on investment.
ROI is everything in home improvement. If your project won’t return the money and sweat equity you put into it, it’s not worth doing. For your time in these ever-busy days is money. Trust us, folks, pie-in-the-sky projects like equipping your home with a retractable summertime roof are best left for daydreams, not serious home improvement planning.
“While some projects allow you to earn back most of your investment, others won’t even come close,” Super Money’s Jessica Walrack cautions.
But the right summer home improvement projects pay back like hitting 21 in Blackjack.
“Certain ROI home improvement projects can not only make your house look better, but also increase its market value,” Architectural Digest’s Alyssa Giacobbe writes.
Home Improvement ROI Hit List
The first question homeowners should ask: Which project will have the biggest impact on my home’s value?
“Understanding how much a project could potentially add to the resale value is the first step in determining whether or not the investment will pay off,” Beatrice de Jong, a broker and consumer trends expert at Opendoor, told Architectural Digest.
But what home improvement projects are the best bests to deliver strong ROI in 2022? Here are Coldwell Banker Elite’s Top 10 home improvement projects with the highest return on investment:
- Updated Kitchen Appliances
- New Front Door
- Bathroom Remodel
- A Fresh Coat of Paint
- Garage Door Replacement
- Vinyl Siding Replacement
- Adding a Deck
The Practicality Rule
The greatest return on investment your summer home improvement project can deliver is how it improves the livability and comfort level of your home. As homes continue to multi-task in a post-COVID America, improvement projects should focus on your family’s current needs for the place you call home.
“The list of trends for 2022 is inspired by the need for our current spaces to become a touch of everything,” Bob Vila.com’s Shannon Lee writes.
Home improvement experts recommend homeowners use a Home Improvement Calculator to help determine which renovation and remodeling projects will have the biggest impact on your home’s livability and value. Ask yourself: What is the overall goal of the project and do I really need it?
Practicality should be the driving reasoning behind every home improvement project. New windows and doors for homes with ventilation issues are smart rainmakers. A garage Jacuzzi? Not so much.
This year, the home improvement projects producing the greatest immediate ROI are fiberglass attic insulation and steel entry doors, Super Money reports.
Renovation specialist Brian Davis told Super Money that projects emphasizing “practical concerns of energy efficiency and security” deliver instant ROI.
Of course, there is no 100% accuracy guaranteed mathematical formula for calculating the ROI for home improvements. That’s an equation not even legendary mathematician Pythagoras could devise. The only official way to calculate home value is through an appraisal and having a real estate appraiser determine the fair market value of your home.
But knowing what type of ROI you can expect on your dream home improvement project before you dive headfirst in is the best way to know if should stay a dream or become reality.