Home Renovations that Increase Property Value
The home renovations that increase property value might come as a complete shock to you. In fact, the ones that return the most on investment are those which homeowners don't think about.
By: Coldwell Banker Schmitt Real Estate
Schmitt in Key West.
If you ask the average person which improvements return the largest ROI, they'd probably name off huge projects, such as adding a master bedroom suite or putting in a swimming pool. However, these are, in reality, two of the poorest performers. So, let's take a look at the home renovations that give a property the biggest increase in value:
• A new garage door. Okay, this probably didn't even occur to you. But, a brand new garage door is actually right at the top of the ROI list. It's been shown to return more than 100 percent on investment by construction trade magazines. No, it's not exactly the most exciting change, but it is surprisingly one of the most, if not the most, valuable.
• New steel front entry door. Perhaps just as surprising is the fact that a new steel front entry door performs almost as well. Studies have shown that by changing out an old wood or even metal door, in exchange for a steel model, brings back nearly 100 percent of its purchase price.
• Upgraded insulation throughout. Here's another shocker: new insulation throughout the house. Even though it can't be seen, it's functionality is where it really shines. because it effectively reduces the cost of operating a household in the form of lower energy bills, new insulation is a top performer.
• Minor, whole room makeovers. There's a misconception that a completely overhauled kitchen or bathroom will bring big bucks at resale. While they certainly contribute to the increase in a home's value, they probably don't return as much on investment as you would think. In fact, minor kitchen and bath remodel substantially outperform major changes, by factors of 10 to 15 percent.
Last but certainly not least, landscaping and curb appeal up a house's value. Yet another is a standby or whole-house generator, which can raise a property's value by three to five percent.
Fred Mullins, P.A. holds an MBA, B.S., Real Estate License, United States Coast Guard Master Captain's license and Commercial Pilot's License. With over 20 years of cross-functional experience in real estate, international asset management, and construction management, Fred's experience places him as one of the top real estate professionals in the Florida Keys. For help with buying or selling Real Estate in the Lower Florida Keys, see