Did you know that 65% of all remodeling projects cost upwards of $10,000?
When investing in your home, follow these strategies for boosting market value
 
For the majority of homebuyers, the first year is an exhilarating experience. But once the initial ‘newness’ wears off, you have a ton of decisions to make. Whether it’s an outdated bathroom, older paint colors, or awkward floor plan, you’ll have to shell out some money to make the space truly feel like ‘home.’
 
Over the years, real estate experts have studied the spending habits of new homeowners in search of the best remodeling projects for return on investment. And while many of their findings are expected, others may surprise you.
 
 
Renovate to appreciate
 
A 2018 Chubb survey revealed that of the 58% of homeowners planning on a major renovation, 65% will spend at least $10,000; another 20% will budget between $10,000 and $40,000; and 15% of people will spend even more.
 
When so much money is on the line, you have to think with your wallet.
 
“Pay attention to what homes top out for in your neighborhood,” says Leneiva Head, a broker at Welcome Home Realty. “If they top out at $500,000, and yours is already worth $475,000, you may lose money if your project is more than $25,000. Even that bears consideration because if you spend $25,000, then you only break even.”
 
Worrying about number crunching can suck the fun out of what should be an exciting time for your family. But if you keep broader trends in mind, the process doesn’t have to be stressful. Your friends at Everest have compiled three popular home improvement projects sure to give you good return on investment.
 
Try to tackle these renovations sometime in the first year for maximum rewards. Then, stick around for a few bonus projects proven to boost your home’s value in 2021 and beyond.
 
3 Ways to Boost Your Home’s Value in the 1st Year
1. Start with kitchens and bathrooms
 
When it comes to renovations, high-traffic areas of the home provide a solid return on investment. Remodeling options range from complete gut jobs to small DIY tasks completed over the weekend, such as installing new tile, updated fixtures, or fresh lighting. Not to mention, research shows that younger homebuyers are much more likely to tackle kitchen and bathroom projects than in the past.
 
 
“Start by replacing old appliances with new, and make sure all appliances match if possible,” says realtor Sara Hopkins. “You can reface or replace outdated cabinets, as well as revive old flooring with newer tile or vinyl options. And even very simple updates, like a backsplash or new appliances, can be a valuable place to put your money.”
 
 
2. Spend time (and money) on landscaping
 
New homeowners are often consumed with the interior of the structure. It makes sense, as this is where you spend the majority of your time. But if you set your sights on the exterior of the property, there’s great opportunity to boost value. Experts say to focus on adding foliage as opposed to removing it. Planting new trees and shrubbery not only enhances curb appeal, but also helps cool your home during hot summer months.
 
 
According to Hopkins, “Landscaping is probably the best and easiest, most affordable way to increase your home value in the first year. Healthy trees, blooming flowers or plants and neatly trimmed lawns make a house, well, prettier.”
 
 
3. Change and expand the floor plan
 
If you’re ready to spend a significant amount of money, there are two ways to ensure instant return on investment. One is to modify an outdated or difficult floor plan, and the other is to add more square footage (if possible). Future buyers will always appreciate an additional bedroom, bathroom, finished basement, dedicated laundry room, or some other flex space such as an enclosed patio or home office. In the meantime, your family will also benefit from such a dramatic upgrade.
 
 
“Bigger homes usually lead to higher values, and that’s something buyers tend to notice,” says Julia Dellitt, real estate writer at Forbes. “Adding another decent-sized bedroom alone can broaden your buyer list if you sell, since many people will always consider more bedrooms than their family requires, but rarely consider looking at properties with less.”
 
 
Bonus Boost!
 
Ready for another round of improvements? Each year, Remodeling Magazine examines projects performed across the U.S. “to see which retain their value at resale.” Here are the top 3 upgrades offering the highest ROI in 2021.
 
New Garage Door
 
Average cost: $3,907
Average resale value: $3,663
Cost recouped: 93.8%
 
Manufactured Stone Veneer
 
Average cost: $10,386
Average resale value: $9,571
Cost recouped: 92.1%
 
Minor Kitchen Remodel
 
Average cost: $26,214
Average resale value: $18,927
Cost recouped: 72.2%
 
 
Everest says: spend to save