When it comes to buying a home, most people focus on the monthly mortgage payment and other upfront costs. However, there are plenty of hidden costs that can have a big impact on your long-term financial well-being. For example, buying a home might reduce your monthly housing expenses, but you will likely end up paying much more over time as a result of homeownership. That’s because there are so many maintenance costs that most first-time homebuyers don’t anticipate. Things like fixing broken windows or leaky roofs, replacing broken plumbing or appliances that go out sooner than expected, and even installing new flooring or countertops. These aren’t things you can skimp on without risking the resale value of your home in the future. Because of all these hidden costs, most real estate agents suggest that potential buyers invest in home improvement blogs to increase home value.
How to Determine the ROI of Home Improvements
The easiest way to determine the ROI of home improvements is by calculating the increase in the home’s appraised value. After all, one of the most important factors in determining the home’s resale value is its condition. Thus, if you make improvements to your home that improve its condition, you are likely to see an increase in the home’s value.
This will ultimately increase your equity as you prepare to sell or refinance your home. Using a home value estimator can help you determine the expected increase in your home’s value as a result of the home improvements you plan to make. Simply enter the estimated costs of the home improvements you plan to make and the estimator will tell you how much they are expected to increase your home’s value.
Fix Your Roof
The roof of your home is the most expensive part, and it is also the most important. It protects you, your family, and all your belongings from the elements. However, many homeowners fail to maintain their roofs, which can lead to costly repairs or even costly replacements. If your roof is old and in need of repair, it is best to hire a contractor to replace it as soon as possible.
Roof repairs will not only save you money in the short term, but they will also save you money in the long term. If you replace your roof with a new one, it will likely last between 20 and 30 years. That means you will have to replace it again shortly, which can be costlier than just fixing it now. In many areas, a new roof will cost around $10,000. If you invest this amount now and get a 10-year warranty, it will likely cost you less to fix it in the future than if you wait a few years and have to replace it again.
Add New Windows
Similar to roofs, old windows can be difficult to repair. They often have broken parts that are difficult to replace and can lead to costly energy bills. New windows, on the other hand, are energy efficient and will help you lower your energy bills. New windows also improve the look of your home and can increase its value by up to 10%–15%. New windows can cost around $2,000 for a typical 2-story home. That may seem like a lot of money, but you can easily make up that money by lowering your energy bills. You can also make up the difference or even increase the amount by selling your home for more than it was worth before you installed the new windows.
Repair, Replace or Install Doors
Doors are essential to keeping your home safe and secure, so it is important to keep yours in good condition. If your doors are old or damaged, you can hire a contractor to repair or replace them. Newer doors are more secure than older ones, which can help you lower your insurance costs. Additionally, newer doors can increase the value of your home. Replacing all your exterior doors will cost around $8,000 on average.
But again, you can easily recoup that money and more in the long run. Newer and more secure doors can help you lower your insurance costs, which can be a significant expense for many homeowners. In addition, newer doors can increase the value of your home by up to $2,000.
Install New Appliances and Fixtures
Old appliances and fixtures are both a safety hazard and a waste of money. You can replace your appliances and fixtures with newer models that are safer and more energy efficient. It is best to hire a contractor to install your new appliances and fixtures so that they are properly installed. New appliances and fixtures can increase the value of your home by $5,000 or more. They can also help you lower your monthly utility bills by as much as 15%.
Add Natural Light by Installing Windows
Installing new windows to increase natural light can be expensive. However, you can also reduce the cost of this project by removing some of the existing windows. You can hire a contractor to remove some of your current windows and replace them with new, smaller windows that allow more natural light to enter the home. Depending on the cost of the materials, a contractor may charge between $800 and $3,000 to install new windows in your home.
However, you can recoup most of this money and more by selling your home for more than it would be worth without the new windows. These home improvements will increase your home’s value and help you save money in the long run. They will improve both the interior and exterior of your home, which can increase your resale value and help you secure a lower interest rate when refinancing your home. In the end, these home improvements are worth the cost and will help you get the most out of your investment.