Comparing Stunning Home Remodeling Projects by Highest ROI
Consistent home remodeling is important for a number of reasons. For instance, it can help you enjoy increased comfort, safety, and functionality in your home. However, at the top of the list for most homeowners is keeping the home up-to-date in the eyes of home buyers and securing strong resale potential on the real estate market.
To this effect, not all home remodeling projects are created equal. To help homeowners sort through which remodeling projects yield the highest return on investment, Remodeling Magazine releases an annual Cost vs. Value Report for all popular renovation projects. Its 2020 report for the south-central region (Texas, Oklahoma, Louisiana, Arkansas) yielded some interesting results, with the following stunning home remodeling projects likely to be the most lucrative if you are planning a renovation for your Dallas-area home in 2021.
Siding, siding, siding. There are a number of reasons why quality siding is a valuable asset for a Dallas home, including:
- Curb appeal – although there may not be as many sprawling ranch estates in the Dallas area as in years gone by, appearances still matter to buyers in the region. Clean, classy siding is arguably the most important factor in securing a home’s curb appeal, with buyers willing to pay extra to look the part.
- Insulation – summers can get a little warm in Dallas, and having siding that is high in thermal mass can go a long way toward ensuring that this heat is not transferred to the home’s interior. In fact, if you are due for an asphalt or shake roof replacement, it is a great idea to do a combination roof/siding project to keep your home well-equipped to thrive during the summer.
- Maintenance – traditional siding materials, such as wood or brick, look good but require consistent treatment and sealing in order to continue functioning as intended. As a result, buyers are willing to pay more for siding products that give the same rustic appearance while requiring a fraction of the maintenance effort.
Several siding options were listed among the most lucrative for the south-central region, with manufactured stone veneer (91% ROI), fiber cement (77%), and vinyl (70%) all providing handsome returns for homeowners.
Minor Kitchen Remodel
As with the rest of the country, the Texas region saw a far greater return on investment for minor kitchen remodels (76%) than with upscale endeavors (55%). Simply put, larger, fancier kitchens require more work, so it is possible to create too much kitchen.
Therefore, when renovating your kitchen, focus less on making it bigger and more on making the existing space more functional and easier to maintain, with the following ideas strong options for increasing resale value:
- Update damaged floors with durable and nonporous vinyl flooring
- Replace cracked and stained countertops with engineered quartz
- Make the switch to energy-efficient appliances and low flow sink faucets
Garage Door Replacement
A garage door replacement is sometimes overlooked in favor of more in-depth projects (many garage doors can be replaced in a little as a few hours), but it is actually one of the highest ROI projects a homeowner can undertake, as the stunning curb appeal is highly desirable to buyers.
While not as strong as the national average that saw homeowners recoup 95% of costs in 2020, garage door replacements were nonetheless lucrative in the south-central region, with homeowners getting back $2,636 of an average cost of $3,598, good for an ROI of 73%.
Midrange Bathroom Remodel
After kitchens, bathroom remodels are arguably the most exciting projects for homeowners, as the possibilities for a spa-like oasis really get the wheels turning. However, just like with kitchens, modest bathroom remodels return a higher ROI than more upscale projects, with an average ROI in the Texas region of about 66%.
Some smaller projects that can really spruce up the bathroom without breaking the bank include adding new handrails for safety, replacing dated fixtures and drawer pulls, and tearing out dowdy cabinets and vanities in favor of a fresher open-shelf look.
Finally, a great renovation project that can add value to your home while allowing homeowners to get out and enjoy the Dallas weather is adding a deck to your home’s exterior. This project will yield a 66% return on investment. To make the new deck even more desirable, be sure to pair it with a fashionable pergola to protect it from the sun and severe weather.
How to finance a remodeling job
Fannie Mae’s Homestyle Renovation mortgage, VA’s Renovation, and FHA’s 203(k) and (FHA 203K Streamline) loan programs are designed to finance the purchase and remodeling projects, all in one loan.
The first thing most people want to do when they buy their home is – “make it theirs”. Remodeling requires new carpet, paint, update the kitchen, and bathrooms. But most cases the new homeowner often lacks the money to do all that they want to do. The only way to get what they want is to run up high-interest credit cards.
Service First Renovation Lending has a better way!
Add the amount of money you need to remodel your new home to your low interest 30 year fixed rate mortgage. A remodeling or renovation mortgage will help your sellers sell their home without having to do a thing to it. A renovation mortgage through Service First Mortgage Services will finance both the purchase as well as the cost of the renovation all in one low interest, 30 year fixed rate mortgage.
We never have a prior to close appraisal requirement. The house could be in shambles with broken windows, missing roofing shingles, peeling paint and structural damage. Your sellers can sell this home to a first time home buyer with as little as 3.5% down and not have to spend a dime on the house.
The home buyers can renovate the home exactly as they want it to be after closing with ample funds to get all the work done by professional contractors.
Home renovation is not only essential in ensuring the comfort and functionality of a property, but it also allows homeowners to maximize resale value come listing time. By considering any of the aforementioned stunning remodeling projects for a Dallas-area home, homeowners can increase their chances of capturing a fruitful return on investment.
Brian Jeffries is the content director for the Innovative Building Materials blog and a content writer for the building materials industry. He is focused on helping fellow homeowners, contractors, and architects discover materials and methods of construction that save money, improve energy efficiency, and increase property value.