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Choose the Right Home Upgrade For A Worthwhile Investment

Owning a home represents a significant investment and you want to make sure that any upgrades you make add to that investment. Unfortunately, it’s unlikely you’ll see a return on investment on some of the more popular upgrades such as building a deck or adding an extra bathroom. By making the right upgrades to your home, you have a better chance of increasing the resale value of your home.

Poor Investment: Additional Bathroom

Adding an additional bathroom has great appeal, especially if your family has to wait in line currently. However, adding another bathroom will only get you 60% or less of your total cost back if you decide to sell. The cost of bathroom additions today, whether midrange or upscale, outweighs the return on investment you can see and thus represents a net loss.

Good Investment: Bathroom Remodel

To avoid such a loss on your investment, choose a bathroom remodel instead. Remodeling the bathroom adds resale value greater than a bathroom addition and you can recoup the 55-65% of the cost when selling the home. Opt for a midrange remodel instead of an upscale remodel to improve the resale value and your return on investment.

Poor Investment: Composite Deck

If you’re thinking of adding a deck, you may think composite decking is the best choice. However, composite decks don’t offer the same recoup on your investment that real wood decks can offer.

Good Investment: Wood Deck

Wood decks can provide a resale value 10% higher than composite decks and usually cost less to build. Wood decks require more maintenance though so that’s something you need to take into consideration as well.

Related Article: Sell Your Home Fast With These Upgrades

Poor Investment: Backup Power

A backup power generator offers great benefits if you lose power during a storm or other natural disaster. However, adding a backup generator represents a significant investment and you may only recoup less than 60% of that investment when you sell your home.

Good Investment: Home Safety

A better investment in the safety of your home is replacing the entry door or doors to your home. New doors improve security, hold up against the elements and improve home security. Best of all, the installation of a new midrange steel entry door can recoup up to almost 130% of your investment and may qualify you for a substantial tax credit for being energy efficient. Another door project that only takes a few days and can yield a high return on investment is replacing the garage door with a newer, safer door.

Simpler projects that cost less provide a better return on investment than upscale renovations, additions or remodels. It’s a wiser idea to invest in a few affordable projects than sink all the money into one big, expensive project. Hiring a professional costs more than doing it yourself but can be safer unless you’re a professional contractor yourself or great with DIY projects. Before you decide to improve your home with that big bathroom or kitchen renovation project, remodel or addition, it’s best to look into alternative upgrades that provide a more significant return on investment while improving the value of your home.


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