Making Exterior Renovations With A High ROI
If you’ve stared at the exterior of your home, wondering how much value you could add with some renovations, you’re not alone. Millions of homeowners ask themselves the same question. But not everyone gets it right, and sometimes, the renovations don’t result in the expected return on investment (ROI).
While internal renovations are popular ways to increase the value of your home, this blog will focus on exterior renovations, which provide the best return on investment.
At Choice Exteriors, our mission is to provide exceptional exterior contracting that improves the value and function of your home. With that in mind, let’s consider some approaches to external home renovation, some tried-and-true projects, and what to avoid.
Ready? Let’s begin!
Why Renovate?
Getting the best ROI on your renovation isn’t just about making some changes to your house and getting an instant value increase. You’ll want to ask yourself whether you want to:
- Renovate to sell: If you’re selling your home, you need to make some aesthetic renovations to prepare for the realtor. Essentially, you want to improve your home’s curb appeal.
- Renovate to improve: You may be making improvements to your home because of changes in taste or because you desire to improve its quality. In either case, it’s crucial that the work is done to the highest standard. After all, you are the beneficiary of these renovations, and you want to enjoy your improved home.
With these fundamental questions in mind, let’s examine what needs to be done to achieve these goals.
Renovations With The Highest ROI For Home Sales
Congratulations! You’re looking at moving to a different home. This means you want to sell your home for the highest possible return on investment so you can put the proceeds against your new home. Think about making quick renovations that would make it easy for the prospective buyer to move in with minimal effort and investment, such as:
- Repainting the house: If the paint is worn, consider repainting it. Bold colors may make it stand out, but it may not be for everyone, so consider a neutral color to give it a fresh look.
- Checking your gutters: While we take our gutters for granted, dirty or damaged gutters will stand out during a home viewing. Have them cleaned, repaired, or replaced before you get those realtor photos.
- Adding a splash of color: Nothing says “this is the home for you” more than a house that pops at first glance. The simplest way to get started on this is to decorate your porch with some fresh potted plants and flowers. You can find more quick ideas on improving your curb appeal here.
There’s a saying among chefs that people eat with their eyes first.
That's why chefs spend so much time plating their meals. Similarly, most buyers will judge a property by how it looks when they arrive, even before they step into the home.
With that in mind, there are two expensive renovations you should consider when looking to sell:
- A new roof can be a powerful selling point, but is it worth the investment? Yes and no. A roof leaking or nearing the end of its life span will decrease the value of your home and is worth the expenditure. Since this is a reasonably expensive renovation, only consider it if it impacts the prospects of selling your home. However, a new roof will future-proof the house and make a good selling point. A home inspection will tell you if the roof needs replacing, but if it’s still in good condition, leave it alone.
- A new HVAC unit: Replacing the HVAC is similar to needing a new roof to sell—if it works, leave it alone. However, if you have an older HVAC unit that still uses the outdated R22 freon as a refrigerant, consider replacing it with an A2L-standard HVAC system. This system started replacing the current R410a standard in 2023 to make it more appealing to prospective buyers.
While a new roof or HVAC would attract buyer interest, the ROI not very high, as most homebuyers would expect the HVAC unit to work and the roof not to leak.
On the other hand, if you want to renovate to increase your enjoyment of your home, you’ll have more options. Next, we’ll look at some external renovation ideas that will increase your home’s return on investment and give you enjoyment for years to come.
High-ROI Exterior Renovations You Can Enjoy
Your home is your refuge from the outside world. At the end of the day, wouldn’t you like to come back to a comfortable home that is pleasing to your soul and to your eye? Let’s look at how you can enjoy living in a nicer-looking house with these high-ROI options:
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Replacing your existing siding:
Whether vinyl, fiber cement, or stone veneer, these renovations last for years and will make your house's exterior pop while protecting your interior from moisture and mold. The ROI varies depending on the type of material, but it's worth considering.
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Stucco Remediation:
Stucco siding is brittle and can crack due to the building shifting or moisture penetration from improper installation. Rather than repairing it, consider replacing it with more flexible and aesthetically pleasing siding, Our remediation services use premium materials like James Hardie, and our advanced flashing methods will ensure that no moisture gets into the interior of your home.
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Windows:
Whether vinyl or wood, replacing your windows will add value to your home. Consider this renovation if your windows have significant damage, no longer open or close smoothly, let a lot of noise in, or if you notice condensation between the glass panes. You can also see potential additional returns in the form of energy savings.
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Doors:
Replacing your front door is a low-cost renovation with a good ROI. You have many options for color, security, insulation, durability, and more. Residential doors are also available in wood, fiberglass, or steel. Select a door that best matches your home’s aesthetic and combine it with flowers and plants on your front porch to improve curb appeal.
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Patio or Deck addition:
Many homebuyers wish to have a finished outdoor area to work, entertain, or relax. Combined with a well-maintained and decorated yard, a patio or deck will boost your equity, though a deck has a higher ROI due to the higher costs to build. Either way, you’ll also gain outdoor enjoyment, which yields many intangible benefits.
Renovations to Avoid
As appealing as they may seem. Some exterior renovations are likely to yield a low return on investment and might even detract from your home value or appeal.
Let’s look at some upgrades to reconsider or avoid:
- Swimming pools: While a pool is desirable in warmer climates it requires upkeep and may be viewed by some potential buyers as a liability. Swimming pools are also expensive to install and may only add up to a 7% increase in home value. The bottom line is to look at a pool as an investment in your lifestyle, not your home.
- Sunrooms: While a sunroom can be a nice place to sit and soak up some sunlight, it’s considered an unwise home improvement. The reason? The ROI on sunrooms is only about 50%. And depending on where you live, you might not be able to add the sunroom to the total square footage of your home.
Conclusion
Thanks for sticking with us if you’ve read up to this point! We hope that this information has been helpful to you in making your exterior renovation decisions.
Of course, the quality of the work will also affect your ROI, which is why Choice Exteriors is here to help. Ready to have a new home exterior that requires less maintenance while upgrading your style and home’s value? We combine only the premium materials with high-quality Amish craftsmanship to provide external home renovation services, such as:
Call us today to schedule an appointment!