Homeowners may obsess about kitchen countertops and bathroom tile, but the best investment often pays off before buyers step inside. Exterior improvements consistently rank among the top home renovations for return on investment, and that makes perfect sense based on how buyers evaluate properties.
A home’s exterior creates that crucial first impression, establishes expectations about everything else inside and provides a wealth of information about the care put into the property by its current owner. When the exterior shows signs of wear and tear, buyers quickly calculate how much they will need to spend to make it acceptable before they even set foot in the house. On the flip side, a strong exterior provides buyers with the confidence that a house has been well cared for, and that quality translates into solid offers for sellers.
Roofing Work Is at The Top of The List
The cost for a new roof consistently ranks as one of the top items in annual cost versus value reports, and it is easy to see why. Buyers understand that a roof is an expensive item to replace, so when a house has a new one, it represents one big expense they will not have to make for a number of years. The value of investing in a new roof goes well beyond the cost of installation or replacement though. It removes the typical thousands of dollars in price cuts that buyers use when negotiating an offer on a house.
Here’s the kicker — roofing is also the most commonly identified issue by lenders and inspectors during real estate transactions. Problems with shingles, flashing, sheathing and other roofing components can directly derail even the best real estate deals. Even minor issues in roof condition often result in requests for thousands of dollars off the final sale price. Taking care of any necessary roof repair before putting the house on the market saves everyone time and helps keep the transaction moving toward a timely closing.
Roofing provides quantifiable value as well. Homeowners can expect to recoup anywhere from 60 to 70 percent of their expenses on roofing at the time of resale. In some regions with active real estate markets, those percentages can be even higher. That value is better than most interior remodels and far better than luxury-level renovations like adding a pool or creating an elaborate outdoor space.
Entry Doors Make A Big Impact
The simple act of replacing an entry door adds one of the highest percentage ROI values of any potential home renovation or upgrade. In many areas, replacing an entry door with a steel or fiberglass door restores as much as 90 to 100 percent of its value at resale and often with profits to spare.
That payoff is no accident. Entry doors are easy for buyers to evaluate. The entry door serves as an architectural feature that adds curb appeal to homes. People see it in listing photos, while also evaluating it when they visit during open houses. Dated doors or poorly fitting doors create a significant perception that buyers cannot overlook. On the other hand, solidly constructed and well-fitted entry doors create instant quality.
Here’s the bonus with door upgrades: buyers are also interested in performance factors. Contemporary entry doors offer improved energy efficiency. Modern locking mechanisms provide enhanced security. For entry door upgrades, these necessary additions do not significantly add to homeowners’ upgrading costs.
The cost of a new entry door does not need to be extensive, so homeowners looking for big returns from tiny investments should pay attention here. For $2,000 to $4,000, homeowners can change how a home feels to buyers as they approach the property. Spending a little extra on an attractive paint or stain job, quality hardware and weather seals means that homeowners feel they have made an impressive upgrade without breaking the bank.
Siding Replacement Renovation Project
Buyers can perceive an entire home differently with new siding. Shabby siding makes homes look older than they may be on the market, and buyers do not always overlook peeling paint, cracked boards or dated colors. Fiber cement siding and vinyl both offer similar ROI values typically around 70 to 80 percent of project costs.
Those percentages only tell half the story. Fiber cement and vinyl siding offer significant benefits beyond purchasing decisions based upon aesthetics alone. The latest siding types on the market are high-performance products requiring minimal maintenance and gaining warranties that apply to the entire home.
Multiple demographics tend to prefer contemporary siding upgrades in different markets, which means homeowners do not need to worry about accommodating a wide range of buyer preferences. Fiber cement boards attract buyers looking for solid durability and traditional aesthetics. Vinyl boards have more appeal for those focused on purchasing affordable and durable homes that do not require too much maintenance over the long run.
Using either type of siding provides benefits that significantly enhance a property’s market position compared to properties with outdated or damaged siding.
Garage Doors Are Frequently Overlooked
Homeowners do not usually focus on garage doors when preparing their homes for sale. Replacing a garage door delivers solid returns though and buying a new garage door usually costs homeowners very little. Garage door replacements typically cost between $1,200 and $2,500 for solid doors with good warranties in desirable colors.
Buyers see garage doors the instant they approach many homes, especially in suburban neighborhoods where garages face main street approaches. A broken, dented or aged garage door delivers an immediate unfavorable impression that most people who show homes struggle to overcome through other outstanding qualities.
Modern garage doors create an immediate positive impression even in high-temperature climates where people do not need heated garage spaces. Buyers do appreciate enhanced temperature control features as a result of advancements in construction materials and techniques.
Homeowners replace garage doors within this market segment for returns greater than 90 percent in some instances as high as 95 percent.
Garage doors have also gained improved safety features in many models available on contemporary markets. Many garage doors come equipped with sensors preventing injuries to pedestrians and animals who may be behind garage doors when they begin closing cycles.
Be Aware of What External Renovations Provide Returns
Knowledge of renovation projects that provide high returns at resale gives homeowners information they can use during their decision-making processes. Buyers consistently make good returns on home upgrades that focus on exterior elements dealing with maintenance issues or highly visible components directly tied to their buying decisions.
Upgrades focusing on renovations that solve problems tend to return good amounts of money during resale visits. Renovations focusing on enhancing pleasing visuals gain positive first impressions that make buyers willing to pay sellers’ asking prices. Both types of renovations work because they make properties more marketable in their area without price negotiations threatening their closing processes.
Knowing when to do improvements also matters. Completing exterior improvements months before listing properties ensures that they avoid looking like rushed last-minute renovations. Avoiding conveyance problems during listings can prevent dealing with rescinded offers and compensating potential buyers.
Exterior improvements avoid major buyer concerns while ensuring properties remain well-protected during the listing period.
Contemporary exterior improvements create safe environments for strong first impressions while avoiding anxiety-inducing concerns for potential buyers throughout their visiting experiences.
