Residential real estate is typically the biggest investment for those living in and near Elizabethtown. So, if you're looking to boost that investment while also making your living space more efficient, making some smart home upgrades is a great move. Whether you're trying to bump up your property's resale value, make it look better, or cut down on your energy bills, here are some cool and affordable upgrades that can really pay off.
How To Calculate Your Home Upgrade’s ROI
Calculating return on investment centers on a commonly used ROI formula that includes the amount you spend on a home upgrade and how much it adds to your property value.
ROI = (Net profit/cost of investment) x 100
The net profit is the actual or expected financial gain from the investment minus its cost.
The cost of investment includes the total expenses, including:
- Materials
- Labor
- Permit fees
- Ongoing subscription/service fees (if applicable)
To calculate the ROI on a bathroom remodel, for example, we’d plug in the numbers:
- Cost of investment in remodeling, labor, permitting, and related expenses: $25,000
- Net profit, or return on investment (at appraisal): $18,000
That equates to a bathroom remodel return on investment percentage of 72%. This is typical for many home remodeling or renovation projects.
Read More: The Best Smart Home Technology Upgrades
5 High-ROI Home Improvements
Most families can’t afford high-end remodels or renovations with significant financing, but there are several affordable and accessible home upgrades that will make your home more comfortable, too.
1. Garage Door Replacement
If you’re putting your home on the market, start here. Upgrading to a new garage door has an average of ROI around 200%! And, replacing an old, weathered garage door immediately boosts curb appeal.
2. A New Entry Door
Another eye-pleasing upgrade, upgrading to a new steel front door typically offers a return on investment of 100% or more, meaning you’ll get every dollar back.
3. Upgrade Your Kitchen Appliances
Replacing older appliances with modern, energy-efficient models offers an average return on investment between 50% and 90%. Whether you’re completing a major or minor kitchen remodeling or just upgrading to improve efficiency, make sure your home’s electrical system is in good shape!
4. Enhance Curb Appeal
Among the best home upgrades for the best ROI are exterior enhancements. Repaint your home with a neutral color, upgrade your landscaping, tidy up any bushes and flowers, and don’t forget about lighting! Choose LED bulbs, which offer an ROI of more than 100% within a year.
5. Upgrade Home Insulation
Adding or replacing insulation substantially lowers your home’s energy costs and usually pays for itself in just a few years. Proper home insulation can also extend your HVAC system’s functional lifespan by reducing the frequency and duration heating and cooling systems run.
Cost-Effective Home Plumbing Upgrades
Upgrading plumbing fixtures and integrating smart home tech can provide an immediate cost savings and could prevent big issues.
- Upgrading to low-flow toilets offers an average ROI of up to 100%, and it’s an inexpensive, quick process.
- Smart plumbing technologies, such as leak detectors or sump pump alarms, offer peace of mind and protect against costly water damage.
Explore More High-ROI Home Upgrades with Allen’s Air Conditioning
We’re proud to help our Elizabethtown neighbors with affordable home upgrades, from HVAC to plumbing. Trust us for quality work at fair prices. Schedule your service appointment with our friendly technicians today!
Contact us online or call 270-946-1525 to schedule an appointment!