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Add more than $1,400 in value to your home with these tips.

Nearly half of all homeowners who get a home equity line of credit use it to pay for renovations, according to a 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 upgrades that could add the most value, according to Remodeling’s 2018 Cost vs. Value Report Third Party Link.

Exterior home renovations

Make the most of your investment by:

  • Replacing your garage door: Out with the old, in with a new garage door! A nicer option will cost you about $3,470, but could add more than a $3,411 value to your home — making your ROI more than 98 percent.
  • Adding manufactured stone veneer: Homeowners may recover 97 percent of the decorative material’s $8,221 cost, on average. If you’re hoping to save more, find out how to cut labor costs and install it yourself Third Party Link.
  • Increasing security with a steel entry door: With a $1,471 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 91 percent of expenses when you sell your home.
  • Building a wooden deck: Not only will you create more entertaining space, you might boost your resale value. Those who invested an average of $10,950 for a wooden deck recouped about 82.8 percent of their costs.
  • Sliding in new siding: Homeowners spent an average of $15,072 to replace their siding, and saw an average ROI of 76.7 percent. 

Interior home improvements

The biggest value-adding enhancements inside include:

  • Making minor kitchen changes: You don’t have to completely overhaul your kitchenThird Party Link to see some serious ROI: Homeowners spent an average of $21,198 and recouped about 81.1 percent of their costs. Replace the cabinet doors and hardware, swap in energy-efficient appliances, and make cosmetic updates to the counters, floors and walls.
  • Replacing wood windows: Drafty windows can cause your energy bills to soar. Reduce your monthly costs and earn back a potential 74.3 percent of what you spend by investing in vinyl window replacements, which will set you back about $15,955.
  • Remodel the bathroom: A modern bathroom, especially one with a handicap-accessible design, can add a good chunk of value to your home. Homeowners who spent about $19,134 generally recouped at least 70% of the cost.

Need some additional home improvement inspiration? Take a look at these 7 ways your home equity line of credit can spiff up your home.

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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