Are you planning to renovate your home instead of selling and moving? You’re not alone.
In fact, more people share the same plans as you because the market doesn’t leave a lot of room to move to a nicer, bigger, or better home.
According to key findings in the 2018 True Cost Report, more than 80% of homeowners choose to stay in their existing homes. 40% of which plan to do home remodeling.
The reason that they choose to stay, however, has more to do with the unusually low supply of housing for sale. Home for sales across the country was already low in 2017 and has further dropped in 2018.
According to Realtor.com, the number of homes priced under $200,000, for instance, has decreased by 12%. This resulted in higher home prices that have increased by up to 8% year-over-year.
This frustrates many would-be home buyers. Rather than dwell on this, however, others chose to plan a home renovation. How much work homeowners plan to take on and the money they are willing to spend depends on several factors.
Key Findings on Home Remodeling Trends
- Millennials are more likely to remodel any part of their home than any other generation.
- Millennials are twice as likely to complete bathroom and kitchen remodeling projects as baby boomers.
- 5 in 6 millennials plan to spend more on a home renovation in the coming months, with half of them expected to spend more than they did last year.
- Baby boomers have spent the most money on remodeling projects in the past 12 months.
- Baby boomers spent 32% more on home remodeling compared to millennials.
- Improved aesthetics is the primary motivation for homeowners to renovate, with improved comfort and added value as a close second and third, respectively.
- Top projects that homeowners plan to carry out in the next 12 months are bathroom remodeling, flooring installation, interior painting, exterior staining and painting, and landscape installation.
Regardless of what home remodeling you plan to do, make sure you see returns on your investment. This constitutes doing renovations that pay you back or pay for themselves.
Because the trends change, it pays to stay on top of what’s going on in the world of home renovation.
Home Remodeling Projects with Good Returns
New garage door
According to reports, a new garage door costs less to do but returns 98% on your investment. This is especially valuable if you plan to sell your home in the next few months or so.
A garage door replacement is one way to increase the curb appeal of your home, making it an exterior renovation work that pays you back big time.
Manufactured stone veneer
Also called a fake stone or artificial stone veneer, this material used in fireplace surrounds and exterior façade takes the top 2 on the list of home renovation projects that pays big. Unlike faux stone, it has the heft and texture as the real one minus the expensive price tag.
Used inside your home, the manufactured stone veneer will make every square foot more valuable than any other materials. In fact, its ROI is valued at 97% of the initial cost n resale.
Front door replacement
When was the last time you had your front door changed?
This year would be a great time to do it since it is considered a project with big returns. Steel is the most recommended material to use. If it fits, replacing your front door with steel is sure to work to your advantage.
This year, decks are no longer just a basic addition to a home. With the right additions, they can update the look of your home and increase its value at the same time.
Some of the popular trends in decking are:
- Use of nonstandard decking board material—Mibrico tile decks, Trex decking, Zuri by Royal Building Products, and other composite and engineered wood options.
- Installation of less typical handrail systems such as a glass handrail or stainless steel cable handrails.
- Addition of outdoor kitchens and cabinetry, from a simple outdoor grill to a fancy gourmet-level setup.
- Addition of backyard heating options such as firewalls and gas fire pits.
Employing a complimentary design style in home remodeling would also work best when decking. This ensures continuity from your home’s interior space to the exterior because the deck mirror’s interior style.
Minor kitchen remodels
Refacing the kitchen cabinets or replacing cabinet doors will pay you back 81.1%. This means you don’t need to spend a lot to improve your kitchen and the overall value of your property. Through minor home renovation projects in the kitchen, you are sure to achieve added value and improved aesthetics.
To renovate or not…
Do you plan to live in the same house for the next five years or so?
It makes sense to make improvements to ensure your comfort if you do. You still get returns for every dollar you spent plus the intrinsic value of living in your home.
Where is your property located?
Location matters even in the matters of home remodeling. Some suburban neighborhoods, for example, are more expensive per square footage than others. This means value appreciates faster.
Nationally, a new garage door replacement will have a 98% return. But in the Pacific coast markets, it will have a 120% return.
Before you carry out a home renovation, make sure to calculate cost vs. value to avoid overcapitalizing. The last thing you want is to blow money over a renovation with little to no returns.