In Northern Virginia, the local real estate market has not only survived Covid, but home sales are stronger than ever, according to Inside Nova. If you’re thinking about selling your house now or even further in the future, you may be wondering what home improvements you should make to add the most value. In this article, we cover the best home improvements for return on investment (ROI) and your financing options.
Best Home Improvement Projects To Increase Value
Whether you’re renovating primarily for your own enjoyment, or plan to list your home for sale soon, the return on investment (ROI) of a given project is probably a top factor in your mind. Let’s look at the best home improvement projects with an ROI of more than 50%.
Replace Your Garage Door For a Modern Look
This is the top ROI Home Improvement on HomeAdvisor’s list, with an estimated ROI of 97.5%. And with an average cost of $1,080, it’s a relatively affordable way to improve your home’s curb appeal and functionality.
When it comes to choosing a new garage door, you want to balance style with functionality. For example, sectional doors are the most popular because they easily roll along a track to open or close and can be controlled with a remote. Side-hinged doors that swing open and shut on either side can provide a classic, carriage-house look for your garage, but they are typically made of wood, which can be higher maintenance to care for. Steel is generally considered the most durable garage door material. You can also add insulation to your new garage door.
Refresh the Siding
Siding doesn’t always age well. If your home’s exterior looks dingy, dirty, or just out of date, a refresh such as a deep clean or brand new siding will boost the attractiveness of your house. HomeAdvisor recommends Manufactured Stone Veneer because it offers an ROI of 94.9%, but you can also choose a different colored vinyl siding or a different material such as wood siding. The average cost of new siding is about $9,625, so it’s definitely more of an investment than a new garage door. However, if you’re planning to sell in the near future, you want your home’s exterior to make a good first impression on potential buyers. At the very least, giving your existing siding a good power washing, which only costs between $300-$600 depending on the square footage of your home.
Add or Expand a Wooden Deck
Outdoor living has become even more popular during the pandemic. Expanding your existing deck or adding one increases the “living space” in your home, as well as making your backyard more functional and appealing to potential buyers.
Experts recommend a standard 16×20 foot deck, but you may need to adjust those dimensions depending on the size of your home.
According to HomeAdvisor, building a new deck will cost about $7,225 and can generate an ROI of 75.6%.
Upgrade the Windows
New windows can dramatically lower your utility bills and make your home more comfortable by preventing cold drafts and keeping the inside cool in the summer. Replacing old windows can also increase the odds of selling your home quickly for a higher price.
One good energy-efficient option is Low-E or low-emissivity glass windows, which come with a microscopically thin coating to keep your house warm in the winter and cool in the summer.
Whatever type of windows you choose, you can expect to reap a 70% ROI. Repairing your existing windows is another, less expensive option if the framing is still in good condition.
Remodel the Bathroom
You don’t have to go big to get results—in fact, a mid-range bathroom renovation with updated tiles, fixtures, toilet, countertop, vanity, and lighting will deliver an ROI of about 70%, whereas a more upscale project actually delivers a lower ROI. So whether you’re remodeling a full bathroom or simply sprucing up a powder room, you can enjoy it for yourself and then enjoy a higher home value when it comes time to sell.
Remodel the Kitchen
As with bathrooms, a minor kitchen remodel will yield a higher ROI (about 81%) than a more extensive one. The average cost of a minor kitchen remodel is $21,198. Examples of renovations in a minor kitchen remodel include stainless steel appliances, quartz or granite countertops, cabinet painting or refinishing, new hardware, a new sink and faucet, and new flooring.
Finish the Basement
As with a new deck, finishing all or part of your basement adds to the total living space in your house. A finished basement can serve as a kids’ playroom, an exercise space, home office, etc. Finishing a basement room usually consists of installing flooring, drywall, drop ceiling, and/or lighting fixtures. You’ll also want to paint your new walls.
The average cost of a finished basement is about $18,000 and you can expect up to 70% ROI, depending on factors like what type of basement you have.
Smaller Home Improvements That Add Value
Looking for a more affordable or less labor-intensive way to modernize your home? Check out these ideas:
- New interior paint can freshen up your space and even make it seem larger if you use neutral colors like gray, beige, and white.
- Smart-home technology can be easy to install and highly desirable among homebuyers. For example, smart thermostats, voice-controlled light bulbs, locks, and window shades are all in vogue now.
- Flooring is another way to give your space a face-lift, whether through deep carpet cleaning, refinishing hardwood floors, or getting new flooring altogether.
- Replace your front door or any exterior doors if you are looking to sell your home. It’s the first thing home buyers see when they look at your home so you want to catch their attention. For example, the Zillow 2018 Paint Color Analysis found that homes with charcoal, smokey-black, or jet black front doors sell for a $6,271 premium. And a steel door replacement can cost about $1,826 and recoup a 74.9% ROI.
Types of Loans For Home Improvements and Renovations
Have you picked out your next home improvement project? The next thing you may wonder about is how to pay for it. Here are the best financing options:
This is a type of unsecured term loan.
- Usually comes with a fixed interest rate.
- If approved, you’ll receive a single lump sum upon approval that you can use at your discretion for home improvements.
- Pay back the principal of your loan plus interest in regular monthly installments.
- Usually require a high credit score to qualify for a personal loan. Generally, a less-than-great credit score will mean a higher interest rate.
At TFB, we make it swift and easy for you to apply for a personal loan. You don’t even need to visit a branch–just apply online and get our response in minutes. If approved, you’ll receive your funds in three business days or less. And for existing customers, we consider your account relationship and history with TFB to qualify you, not just your credit report.
Home Equity Loans
This is a type of term loan secured by the value (equity) of your home.
- Equity is the difference between what you owe on your mortgage and what your home is worth.
- Receive a single lump-sum payment to be paid back in monthly installments with interest.
- If you default on your home equity loan, your lender could take your home through the foreclosure process.
Contact our Mortgage Lending team to learn more about Home Equity Loans!
Home Equity Line Of Credit (HELOC)
Like a Home Equity Loan, a HELOC is secured by the value in your home. However, it’s a credit line, meaning you have a certain borrowing limit you can tap as needed. HELOCs usually come with a variable interest rate and minimum monthly payments will depend on the amount you borrowed.
- Works like a credit card with your spending limit based on your equity.
- Aren’t required to borrow up to the limit of your HELOC – to be paid back in monthly installments.
- If you default on your HELOC, your lender could take your home through the foreclosure process.
Learn more about HELOCs from TFB!
This is a type of mortgage refinance in which you replace your existing home loan with a new one.
- Refinance your existing mortgage into a new loan – you then use the extra money you received as a lump sum to make home improvements and renovations.
- You pay back the total borrowed in monthly payments with interest.
- The only drawback with this option is you’ll be paying back a larger amount than if you settled on a traditional mortgage.
Learn more about refinancing your mortgage with TFB!
Partner with us to finance your home improvement projects!
Our friendly mortgage lenders in Fauquier County and Prince William County are ready to help you break ground on your next home renovation project. To learn more about your financing options and start the application process, visit your nearest TFB branch, give us a call at 540-349-0200, or apply online below.