From small weekend projects to complete makeovers, extra time at home has inspired countless renovations and continues to boost the home improvement market. Although comfort, functionality and style may be driving this surge, adding value to their homes is always top of mind for homeowners.
In fact, according to a NAR Home Remodeling Impact Report, increasing resale value is a major motivator for renovations. And even if a potential client does not plan on selling soon, remodeling with an eye on the future is always prudent. Prioritizing and promoting renovations that maximize return on investment and give added resale value to your customers can help your home improvement business grow and thrive.
Upgrade high-use indoor spaces
By helping homeowners focus renovation efforts on the most-used areas of the home, you can ensure they maximize their budget and boost ROI. Two of the most popular areas of the home – bathrooms and kitchens – also turn out to be two of the most lucrative areas to renovate. According to Remodeling’s 2021 Cost vs. Value Report, a midrange bathroom remodel usually nets about 60% ROI and kitchens can exceed 70%.
To maximize their returns, guide customers toward universal design features, such as a zero-entry shower and an open section under the countertop in the bathroom. These accessible design elements will ensure that the bathroom accommodates those with disabilities, the elderly and children, increasing its appeal to a wider pool of buyers. And in the kitchen encourage your customers to leverage inexpensive and relatively easy upgrades, like resurfaced cabinets with new hardware, to instantly renew the kitchen’s look and resale value.
Cozy up the outdoors
After people adjusted to spending more time at home amid the pandemic, a comfortable and inviting outdoor space moved higher on homeowners’ wish lists. Expanding outdoor areas provides more general living space and serves as an additional venue for entertaining, in addition to adding monetary value to a home.
For instance, adding a patio with a gas fire pit can extend the outdoor season in colder climates and costs an average of $7,500. When it comes time to sell, homeowners can expect to recoup roughly two-thirds of that. Wood decks are a popular choice as well, with a similar ROI. Offering homeowners space to safely entertain now with the opportunity to financially benefit from their investment later is a win-win.
Enhance curb appeal
When it comes to a home’s value, what’s on the outside matters. Improving curb appeal can have a significant impact with relatively small updates. Take the garage door, for example. It may seem like a fairly insignificant detail on a home, but a garage door replacement will almost completely pay for itself upon resale, often coming in at nearly 100% recouped costs.
Because it takes up so much visual space, a new garage door can give a big boost to a home’s curb appeal. Many homeowners rely on its functionality on a daily basis, making it a practical upgrade as well. And flexible home improvement financing can ensure it’s also affordable by providing options to help your customers make this value-boosting renovation for the future without wrecking their finances in the present.
Improve energy savings
Cutting energy costs can be a great way to boost resale value. New technologies like smart thermostats, energy efficient appliances, HVAC updates, etc., are a great place to start, but the most tried and true for ROI is windows. And quality windows not only keep energy costs down, they also improve the home’s aesthetics while reaping almost 70% in return on investment.
It’s important to note that vinyl window replacements slightly outperform wooden windows. However, consider the home’s overall appearance and the customer’s needs when guiding them on the choice between vinyl and wood. Vinyl windows are generally lower-maintenance and more cost- and energy-efficient, but wood is a good option for those who want to change the color of their windows frequently.
Remodel for resale value and customer satisfaction
Countless factors contribute to the home renovation trends of the moment, but one influence that will never change is resale value. By staying current on the top ROIs, you can continue to capitalize on these timeless trends and help homeowners make the most of their home improvement projects.
Ally Lending's home improvement financing solutions can help you put the most valuable renovation projects within reach.