The Best ROI Home Improvements for Your Home

 

Houston is a sprawling metropolis with a growing housing and business market. With architectural styles that include Victorian, Craftsman, and Colonial Revival, there is something for every prospective home buyer.

Along with maintenance, occasional home improvements and upgrades can help you maintain the value of your Houston property. While determining where to invest can be challenging, these home investments have boosted local property values, allowing you to enjoy your home now and fetch a respectable asking price in the future.

Houston neighborhoods are replete with beautiful homes in various architectural styles. Unsurprisingly, some of the best returns on investment (ROIs) for home improvements come from upgrades that boost curb appeal. Manufactured stone veneer, siding replacement, and garage door replacement are among the top five renovations for Houston homes. The returns are staggering, with ROIs of 111%, 83%, and 77%, respectively. Entry-door replacement gets the number seven spot on the list, with a 71% ROI.

On top of increasing the beauty of your home, these upgrades are lasting features that add long-term value. Stacked stone looks beautiful and can improve your home's energy efficiency by adding an extra insulation layer. Replacing a wood door with a steel one has a similar effect, keeping outdoor temps outside and reducing the burden on your HVAC system. Curb appeal gives visitors and buyers a great first impression, increasing your odds of achieving your asking price when you sell.

It comes as no surprise that the heart of the home is a popular space to remodel. However, remodeling your kitchen can quickly become costly, and trends that inspire these alterations come and go. In many cases, a kitchen renovation requiring structural changes and luxurious features can be so expensive that you won't recoup your investment when you sell.

A mid-range kitchen refurbishment, costing around $25,000, can transform an outdated kitchen without leading to overinvestment. You can significantly cut costs by leaving structural elements in place and focusing on visual improvements. For example, you can leave cabinet boxes in place but replace fronts and swap old appliances with sleek, energy-efficient styles. Replacing dated elements, such as laminate countertops and faucets, are also great ways to improve your kitchen's visual appeal.

While a roof replacement is expensive, it has a significant ROI. According to the NAR Remodeling Impact Report, roofing can net a 100% ROI. While a new roof isn't an eye-catching revamp, it's a major project with a substantial expense that buyers will hope to avoid. For a buyer, a home with a new roof is an investment they can make now for a more worry-free future.

Bathroom upgrades have the potential to make a significant impact with only moderate changes. Focusing on changes that improve functionality and replacing worn-out or dated finishes can help you stay within budget and add valuable features that impress buyers.

A universal-design bath makeover focuses on functional and accessibility features, making them highly inclusive to everyone, including wheelchair users, older people, and individuals with limited mobility. Some of the most popular features include a curbless tiled shower, radiant-heated floors, and a widened doorway. Replacing worn-out or dated finishes with new countertops and ceramic tiles will add visual appeal without stretching your budget.

The windows in your home provide security, noise reduction, and protection from the weather. Old, outdated windows decrease the value of your home and overwork your energy systems.

Replacing your existing windows with insulated vinyl windows with a custom-color exterior finish improves your home's curb appeal. The upgrade also reduces energy bills and enhances your home's interior-design aesthetic with charming, divided-light windows.

Outdoor living is increasingly becoming a way of life in Texas, making the space around your home especially valuable. According to the American Society of Landscape Architects, professional landscaping can increase a home's value by 15%-20%. Not all landscape improvements are created equal, however. For the best ROI, focus on landscaping improvements that add long-term value without additional requirements, such as insurance and high-effort upkeep. Landscaping projects that improve irrigation, provide structural improvement, and enhance curb appeal are the most likely to pay off. For example, mature trees add value to a property by adding shade and wind/noise reduction. Xeriscaping is another way to add visual appeal with features that require little to no maintenance. These elements save money over time, improving your overall investment and adding elements most likely to attract buyers.

When it comes to interior home improvements, hardwood floors reign supreme. A hardwood flooring renovation can net homeowners a whopping 147% ROI, with new wood flooring paying off at 118% ROI.

Why are hardwood floors so popular? The elegant look of hardwood has a timeless appeal that works with virtually every type of decor. With routine maintenance, hardwood floors can last a lifetime and naturally reduce allergens in the home. If your home has hardwood floors that have become scratched or dull from wear, having them professionally refinished is a modestly priced, high-impact renovation that won't take months to complete.

A home's value highly depends on its square footage, also known as living space. However, the usable space outside your home can also have a significant impact. Functional outdoor living spaces are included as livable areas, making your home more attractive to buyers in Texas, where you can use the space year-round.

Choosing features that offer a substantial ROI often means leaning toward simplicity. For example, an attached deck can bring a considerable ROI of 81%. On the other hand, you may only recoup 50% of your outlay by investing in an outdoor kitchen. A modest investment in outdoor-living features is likely your best bet to increase your property's value.

If you plan to add posh updates to your home for your family to enjoy and have a substantial budget, you should opt for renovations that make you happy. But when you're remodeling to put your home on the market, it makes sense to match your efforts to the homes around you. Homes in your area with similar features play a big part in how homes are valued. Even if you add upgrades that increase your property's value, buyers aren't likely to be interested because they're shopping within a specific budget.

The 2022 NAR Remodeling Impact Report ranks insulation upgrades as the most important interior upgrade following wood flooring. The upgrade has a 100% ROI nationally, and it is no surprise that it can be a vital improvement to homes in the humid climate of Texas. Poorly insulated homes waste energy, impacting the environment and increasing your energy bills. You can upgrade the insulation in your home by adding attic insulation, sidewall insulation, basement insulation, or crawl space insulation.

Whether you're planning to invest in a home in Houston or remodeling with plans to put your home on the market, understanding the best ROIs for home improvement can help you maintain the value of your home. To learn more about the importance of home renovations and buying or selling luxury real estate in and around Houston, contact Carol Wolfe. With years of local experience and a goal to provide clients with unparalleled service, she'll help you achieve the perfect relocation experience in the Houston area.