BALTIMORE Blog

Home Renovations and Your Return on Investment in Baltimore

No matter what the motivation for your home renovation may be, you’ll want to know that your money is well spent. These are the home improvements that provide the best return on investment (ROI) to increase your home’s value.

A return on investment (also referred to as ROI) measures how favorable the cost to performance ratio is for an investment. You can calculate this by taking the Net ROI and dividing it by the Cost - when you multiply the result by 100%, you end up with the ROI percentage. To calculate the Net ROI, take the final value of investment (FVI) and subtract the initial value of investment (IVI). In many cases, you can work with a contractor to gather a more accurate assessment but knowing the calculations for yourself is a great tool to have in order to become more familiar with your spending and savings.

‘Type of project’ is one of the biggest factors in determining your renovation’s ROI. While obviously the other factors like timing, market and location will make a difference too, there are some common projects that generally provide a better ROI than others.

5 Common Renovations for Better ROI:

Small Remodels

Minor remodeling in places like the kitchen and bathrooms instead can provide a much better ROI. It’s important to make functional changes first as opposed to focusing on appearance adjustments. Touching up the paint instead of a full redesign, upgrading necessary appliances, and consulting agents on buyer trends in your area can help you make more informed decisions on your updates. For example, in the southeast of the United States, basic remodeling jobs can recoup over 50% of the cost on average.

Replace Windows

Replacing the windows throughout the house is a great way to not only enhance your aesthetics but also improve air sealing, insulation, and durability. When taking the time to restore this area, you have several options that can improve ROI, with the highest return typically coming from vinyl or wood replacements. Wood replacements are most sought after in classic-style homes but vinyl is considered easier to maintain.

Air Sealing

Air sealing is used to reduce air leaks and improve the indoor air quality of your environment. By updating the air sealing, you can reduce heat loss through small gaps, cracks, and holes throughout the building envelope. These problematic openings can happen from general wear, natural weather damage, or pest infestations and can allow pollutants, allergens, and other outdoor air to flow freely through the home. While most homeowners can handle minor air sealing adjustments, it’s important to consult an industry expert to inspect for areas that could be hidden or taken for granted.

Insulation Material

It’s important to remember that insulation and air sealing work hand in hand - if you find that one material needs to be updated, it’s likely that the other should be evaluated as well. Insulation helps to regulate the temperature throughout the house and maintain climate control. By regulating heat transfer, the material keeps out unwanted heat in the summer and traps in desired warmth during the winter.

Upgrading the Curb Appeal

In addition to enhancing the beauty of your property, certain upgrades also help improve your home’s efficiency and security.  Overall, projects that involve exterior improvements - from new windows, roofing, and siding to painting and landscape maintenance - can result in 80% ROI. One reason for this is that “curb appeal” is the first thing home buyers notice when they see a property - even if they don’t go inside.

Learning more about how to save money during a home renovation doesn’t have to turn into rocket science.  Our employees at Koala Insulation of Baltimore are dedicated to bringing their communities comfort and safety with the help of cost-effective and energy-efficient products and services.  Our local crew offers free evaluations so your household has a better understanding of your home’s needs. We also break down the current condition of your insulation so you can target pain points and future updates while taking into account your schedule and budget. Contact Koala Insulation of Baltimore to learn more about how our free evaluations can impact your comfort, safety, and savings.