A recent survey of real estate agents reveals that few home improvement projects recoup more than 80% of their costs when properties are resold. As the housing market enters what some economists call a correction cycle, funding for overly lavish home renovations has started to dry up.
Therefore, personal finance experts caution homeowners to plan home improvement projects based on the potential resale value of the homes as well as lifestyle considerations. Contractors and real estate agents recommend three home improvement projects that your family can enjoy right now without the fear of losing investment value:
Replacement windows. While installing replacement windows might not feel as glamorous as adding a sunroom, this practical home renovation project often recoups as much as 85% of its cost. Not only do replacement windows improve the look of a home, they also help lower energy bills. Wood replacement windows retain even more of their value than vinyl models by combining efficiency with classic style.
Kitchen remodeling. Contractors and real estate agents caution homeowners against buying into the hottest trends, especially if a remodeled kitchen looks dated in three to five years. By investing your home improvement budget into high-quality appliances, classic cabinet materials, and durable counters, you can recover as much as 85% of your investment at resale. Even better, real estate agents report that minor, less costly improvements often have the same impact on resale value as complex upfits.
Siding replacement. While most homeowners take their siding for granted, real estate agents note that a good looking exterior can raise the asking price of a home. Siding contractors now have access to fiber cement siding that retains an astonishing 88% of its value when resold. The durable material holds paint well, allowing for flexible design options, and the promise of longer time between home improvement projects.