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Add more than $1400 in value to your home with these tips.

renos-to-reconsiderNearly half of all homeowners who get a home equity line of credit use it to pay for renovations, according to a 2015 BMO Harris report.

And with good reason: Home improvements have the potential to provide a significant pay off when you’re ready to sell your property. But it’s important to understand which renovations will provide a high return (and those that will just leave a dent in your wallet) before you grab a hammer.

If you’re thinking about tapping into your home equity to spruce up your living space, consider these eight mid-range upgrades that could add the most value, according to Remodeling’s 2015 Cost vs. Value Report Third Party Link.

Exterior home renovations

Make the most of your investment by:

  • Increasing security with a steel entry door: With a $1,230 average price, upgrading to a steel door is one of the most cost-efficient home improvements you can make. You could potentially recoup more than 100 percent of expenses when you sell your home.
  • Adding manufactured stone veneer: Homeowners may recover 92 percent of the decorative material’s $7,150 cost, on average. If you’re hoping to save more, find out how to cut labor costs and install it yourself Third Party Link.
  • Replacing your garage door: Out with the old, in with a new garage door! It’ll cost you about $1,600, but could add more than a $1,400 value to your home — making your ROI more than 88 percent.
  • Sliding in new siding: Homeowners spent an average of $12,013 to add vinyl siding, and saw an average ROI of 80.7 percent. If you have a bigger budget, consider fiber-cement, which could recoup 84.3 percent of costs.
  • Building a wooden deck: Not only will you create more entertaining space, you might boost your resale value. Those who invested an average of $10,048 for a wooden deck recouped about 80.5 percent of their costs.

Interior home improvements

The biggest value-adding enhancements inside include:

  • Making minor kitchen changes: You don’t have to completely overhaul your kitchen to see some serious ROI: Homeowners who spent an average of $19,226 recouped about 79 percent of their costs. Start small with your cabinet and drawer fronts Third Party Link, countertops, and an appliance or two.
  • Replacing wood windows: Faulty windows can be responsible for up to 25 percent of your heating bill Third Party Link, according to the U.S. Department of Energy. Reduce your monthly costs and earn back a potential 79 percent of what you spend by putting in insulated wood windows, which cost around $11,000.
  • Building an attic bedroom: Start with the attic. You may be able to regain 77 percent of the nearly $52,000 cost for converting unused upstairs space into a new room. Find out first, though, if your attic is equipped to become an additional living area Third Party Link.

 
Need some additional home improvement inspiration? Take a look at these 7 ways your home equity line of credit can spiff up your home — and, before you begin your first round of home renovations, discover 5 questions to ask when hiring a contractor and 4 steps to take before construction starts.

For more inspiration, check out Remodeling’s 2016 Cost vs. Value ReportThird Party Link for even more great money saving and home equity building projects.  

Looking for more information about mortgages, refinancing or ways to make valuable home improvements? See our special offers available on our mortgages and home lending page.

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Banking products and services are subject to bank and credit approval.  BMO Harris Bank N.A. Member FDIC.

 

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