Here's a look at three improvements that can boost your equity, two that may not offer the same return and one eternal question for homeowners: Is it worth putting in a pool?
Three home investments worth the work
First, let's tackle three investments worth the work.
1. Minor kitchen remodels
Kitchen remodels offer a solid return on investment (ROI), so long as you don't overdo it. While you could easily spend upward of $100,000 on a complete kitchen overhaul, you can get a bigger return by tackling minor kitchen upgrades such as new cabinet fronts, flooring and appliances. All told, you're in for around $26,000 and can get back around 72% of this investment.
2. Stone veneer installations
Curb appeal can pull in prospective buyers. By adding stone veneer to the bottom third of the street-facing side of your home, you can boost visual impact and recoup most of your expenses. While a stone veneer project will run you around $10,000, its ROI comes in at around 92%.
3. Garage door replacements
Garage doors may not seem like the most likely candidate to top the "best return" list, but replacing your old garage door with a more energy-efficient model that comes with decorative touches such as windows, handles or other ornamentation can boost your home's curb appeal and drive some serious ROI. How serious? Garage door replacements often pay back more than 94% of their original investment, with an average cost of just under $4,000.
Two projects that don't always deliver
Now, let's break down two projects that may not pay you back.
1. Home office upgrades
While home offices are essential — especially now — the cost involved in upgrading them with new desks, storage systems, paint and flooring doesn't pay off over the long term. If you opt for a home-office improvement, expect to get back 50% of your investment — or less if you take usable space away from another room in the house to expand the office footprint.
2. New roofing options
Everyone needs a roof — and that's the problem. Buyers don't consider new roofing an upgrade; they consider it an essential part of owning a home. So while you can spend big money on ceramic tiles, cedar shakes, or expensive shingles, do it for your own benefit rather than ROI.
Bonus question: Should I add a pool to my home?
The quick answer: It depends on where you live.
If you own property in California, installing a pool may be a worthwhile investment for your family.
But what about ROI? Put simply, if you're only looking to boost your home's value, don't go with a pool. Pools are typically neutral or negative — if every other house on the block has a pool, buyers expect it and their valuation is neutral. If the pool is poorly maintained, meanwhile, potential purchasers often view it as a liability. What's more, the cost of a pool doesn't stop with the installation. From regular chemical treatments to maintenance and repair, pools require consistent spending, for you and your prospective buyers.
Paying it forward
No matter what projects you choose to tackle, you need money to make them happen. One option is paying out of pocket, but the costs for some improvements can quickly run into the high ten thousands or even reach the $100,000 mark (or more). As a result, solutions like a home equity line of credit (HELOC) can help you bridge the cost gap and get your project off the ground. These options are ideal if you're looking to sell soon. If you choose a high ROI project, you can quickly recoup your costs and pay off your HELOC once your current home has sold.
Bottom line? Not all home improvement projects are created equal. And while there's nothing wrong with taking on projects that increase your enjoyment of your own home, not every change comes with a positive increase in home equity. If you're looking for ROI, consider projects such as minor kitchen remodels or garage door replacement — and if you're looking for cost-effective ways to fund your efforts, talk to California Bank & Trust.