With the busy spring home buying season quickly approaching, current homeowners throughout the country are preparing to sell, sell, sell. To lower the home’s time on the market and even increase chances of receiving an offer above asking price, many home sellers have considered various home renovations to make the house more appealing; however, gone are the days in which expensive kitchen and bathroom remodels provide the best return on investment. Instead, consider putting your resources towards one of the following:

New Vinyl Siding

Many homeowners get a return of about 83 percent when adding a new vinyl siding because it’s a very visible improvement—and not too pricey or difficult! Easy improvements to your home's exterior could be a good power wash or a new paint job, both less pricey options. Whether you decide to put up new siding or add a new paint job, it’s important to remember to choose the color carefully.

New Garage Door

Your garage door is also very visible on the exterior of your home, so making it aesthetically pleasing is important. A new garage door averages $2,300 but has about an 87 percent return rate. The hot trends right now include doors with windows, carriage-style doors, natural wood, and facsimiles. Adding a new look to this part of your house can bring a fresh look to your home.

New Wood Floors

Though the average cost of installing new floors is on average $5,500, it has a high return rate of 91 percent. Oak floors seem to be up and coming in the Northeast, but whichever type of wood you decide best compliments your home, make sure that you ask about formaldehyde levels and off-gassing. It is important to hire someone who has all the answers to your questions and is confident in giving you accurate information about different woods you can use as well as the differences in pricing.

Refinished Hardwood Floors

So you splurged on those hardwood floors, anticipating a great return on your investment. Now consider refinishing those new floors, adding value and shine to your home. While refinishing your floors costs about $2,500, it tends to add that value to your home; however, refinishing your floors should be a part of refinishing your home in general. Consider adding a new paint coat and fixing those other small repairs you have been meaning to get to. All of these small changes will give your home that finished look that will set it apart.

Insulation Upgrade

While your future homebuyer cannot see the insulation you add to your home, upgrading your insulation adds a great deal of value. In fact, most homeowners receive a 95 percent return on this investment, one of the highest amongst the renovations. Insulation upgrades are huge right now, as energy efficiency becomes more important during the home buying process—especially for millennial homebuyers. Real estate agents often highlight energy efficiency as a big plus for a home, and when a buyer anticipates a lower energy bill and less of an environmental impact, they feel great about their wallet and their footprint.

New Roof

This is only a great return of investment if your roof is in need of repair. If this is something on your list of necessary improvements prior to selling, however, than make sure the improvement counts! With a great roof improvement, homeowners tend to see a 105 percent price gain. For example, if the new roof costs $7,600, the home seller could see a return of about $8,000! Amongst all of these renovations, this is the only upgrade that returns more than originally invested. But remember: if your house does not need a new roof, don’t invest your resources in this project.

Although these changes may not be as fun and exciting as remodeling your kitchen or bathroom, your wallet will surely thank you for considering the more cost-effective home upgrades. It is important to remember, however, that these numbers are simply averages, and do not reflect the absolute set-in-stone prices of each home renovation. Prices may even be covered by a home renovation loan. For more information about home renovation loans, or to learn more about home financing, contact one of our mortgage specialists today and download the Introduction to Renovation Loans.