Homeownership is the biggest investment most Americans make. Timely home upgrades add real value to your property, improve curb appeal, and lower energy costs, all while making your home more comfortable. If you’re looking to make affordable, cost-effective home upgrades with proven ROI, FAST of Florida can help.
How To Calculate Your Home Upgrade’s ROI
Return on investment (ROI) is a basic formula used to calculate how much you “get back” from completing a home improvement project or other type of upgrade. The widely used ROI formula is:
ROI = (Net profit/cost of investment) x 100
The net profit is the monetary gain from the investment minus its cost.
The cost of investment includes the total financial outlay required to complete the project, encompassing materials, labor, and other fees.
To calculate the ROI on a bathroom remodel, for example, you could plug in the following values:
- 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 substantial projects.
Read More: The Best Smart Home Technology Upgrades
What Are the Highest-ROI Home Improvements?
Not every family has tens of thousands of dollars to spend on a home remodel project. Fortunately, there are several affordable home upgrades that make a big impact in terms of both ROI and your comfort.
1. Curb Appeal Upgrades
Some of the home upgrades with the highest ROI are outside. Consider making these affordable home improvements:
- Add or upgrade existing light fixtures and implement security lighting. Choose energy-efficient options, such as LED lighting, which has anROI of more than 100% within a year of installation.
- A new coat of paint reenergizes any home’s look. Consider choosing a neutral color to attract a wider range of potential buyers.
- Trim bushes, add mulch and flowers, and add natural rocks to make your outdoor space as inviting as the interior.
2. 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 also extends your HVAC system’s functional lifespan, reducing the frequency and duration heating and cooling systems run.
3. Replace Your Garage Door
One of the most popular home improvements with the best ROI, garage door replacement offers an immediate curb appeal boost. New garage doors offer an average ROI of around 200%!
4. Replace Your Front Door
Front door replacement is a visual upgrade that adds security, too. A new steel front door offers the best return on investment at around 100%, making it a very safe investment!
5. Kitchen Appliance Upgrades
As a standalone project or as part of a minor kitchen remodel, upgrading to modern, energy-efficient appliances offers an ROIbetween 50% and 95%. Kitchen appliances improve the room cosmetically and may lower your home’s energy consumption; just ensure your home’s electrical system is in good working order.
Don’t Forget Plumbing Upgrades
While not as flashy as a new washing machine or a fresh coat of paint, there are some interesting and affordable plumbing upgrades with nifty ROI.
- Low-flow toilets are inexpensive upgrades that lower water consumption and offer average ROIs up to 100%.
- 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 FAST of Florida
We help our neighbors in Clearwater enhance their properties with smart home upgrades. As the leading local service provider for HVAC and plumbing, we deliver high-quality work at fair prices. Schedule your appointment with our friendly technicians today!
Contact us online or call 727-273-7810 to get started!