GREENVILLE Blog

Increase Return On Investment With 5 Quality Home Improvement Projects

Calculate Your Return on Investment

Return on investment is a crucial area to look into when considering your next home improvement project. Commonly referred to as ROI, this helps to measure how beneficial the cost-to-performance ratio is for a new project. With the help of local estimates, you and your household can easily plug in the numbers to find a general breakdown of a project’s return on investment.

First, find the Net ROI by subtracting the initial value of investment (IVI) from the final value of investment (FVI). Then, take that result (the Net ROI) and divide it by your estimated Cost. When looking for the ROI percentage, multiply that result by 100%. For more information on return on investment calculations and finding the estimates you need, take a closer look at Investopedia’s article here.

5 Home Renovations for Great ROI

• Focus on Minor Remodels

As you start to look into possible home renovations, you may fall into the trap that "bigger is better." However, keeping your changes on a smaller scale can actually provide your household with a better cost-to-performance ratio. Taking on minor remodeling projects in areas like the kitchen and bathrooms, as opposed to larger upscaling efforts, can offer a better return on investment when taking into account what simple adjustments can do for functionality and aesthetic purposes.

One of the areas many homeowners forget to focus on is functionality; they may focus on the appearance more often. Instead, you can start by touching up the paint rather than budgeting for a full redesign, upgrading only necessary and outdated appliances, and consulting a local agent about what trends most buyers are looking for in your area. In the South Atlantic region of the United States, basic remodeling jobs recoup over 70% of the cost on average.

• Consider Window Replacements

When you take the opportunity to consider replacing your windows, you not only have the chance to enhance the aesthetics of the building but also contribute to improved air sealing, insulation, and durability. There are a number of options to choose from as you replace these parts of your home, but your highest return will likely come from vinyl or wood replacements.

In classic-style homes, wood is often the most sought after. However, vinyl is most often considered easier to maintain and has on average a higher return on investment in the South Atlantic region of the United States. If you’re focusing on energy-efficient windows that will help to reduce your regular energy costs, the Department of Energy provides more information on their Energy Star standards and essentials for making an environmentally friendly adjustment.

•  Seal Your Air Leaks

Taking the time to update air sealing throughout the house is an important step to help prevent conditioned air and heat from escaping your home. Small gaps, cracks, and holes in your building envelope contribute significantly to uncomfortable drafts and cold spots. Generally, these openings around the structure are often caused by general wear, natural and weathering damage, and even previous pest infestations.

When you schedule an evaluation to inspect the house for air leaks, this investigation should cover everything from the walls, floors, attic, and ceiling of the building. You’ll most commonly find these problematic areas around the window sills, door jambs, and any other place that provides access to the outside. The EPA estimates that having your home properly air sealed and insulated can save homes on average 15% on heating and cooling bills.

• Upgrade Insulation

Like two sides of the same coin, insulation and air sealing work closely together to improve your environment. If you discover that one is in need of an upgrade, chances are that the other should be evaluated for maintenance needs as well. The primary function of your home's insulation material is to help improve temperature regulation and climate control. This is accomplished by reducing the rate at which heat moves through the structure, which is referred to as heat transfer.

Updated insulation helps to reduce heat gain in the warmer months and heat loss during colder weather. Having this material regularly maintained not only saves you in utility bills by reducing energy waste and HVAC usage, but it can also be a significant target for new buyers. Recently upgraded insulation typically means there’s been a thorough evaluation to detect hidden moisture and mold growth, pest nesting, and air leaks. Essentially, it’s one less problem the buyers have to worry about when they move in!

• Replace the Garage Door

Finally, one of the most common changes homeowners consider when looking to make a quality return on investment purchase is by replacing the garage door of their home. In fact, a new or upgraded garage door installation is generally one of the best upgrades you can make, recouping over 85% of the cost in the South Atlantic region of the United States.

Similar to window replacements, this is a home renovation initiative that puts the focus on both functionality and aesthetics without greatly impacting the cost and ROI. In cases where the existing motorized opener can be reused, you’re more than likely to increase the recouped cost even more.

Making Informed Decisions with Grenville Area Experts

Koala Insulation of Greenville has a team of insulation professionals that is constantly working to improve our community. With our free evaluations, we can provide our neighbors with cost-effective and energy-efficient solutions that take into account packed schedules and tight budgets. With a detailed overview of your home’s current condition, we can target areas where insulation and air sealing need to be removed, improved, or reinsulated.

Insulation often falls under an “out of sight, out of mind” mentality. Unfortunately, many homeowners don’t weigh the significant impact these materials have on improving monthly savings. With the help of our industry experts, we can help you and your household make informed decisions that reduce your monthly expenses. Contact Koala Insulation of Greenville today to schedule a free evaluation and learn more about how improved insulation and air sealing can impact your environment.