5 Return On Investment Projects for South Kansas City Homes

5 Return On Investment Projects for South Kansas City Homes

Taking on a home renovation project can be a daunting task, especially when you’re trying to improve your environment or property value without going over budget. While the focus of a home improvement plan can differ, one factor that should remain the same is the knowledge that your money is being well spent. As such, you and your household should have an understanding of what upgrades are going to provide the best return on investment.

What is a Return on Investment?

Often referred to as ROI, a return on investment is a measurement of how positive the cost to performance ratio is for a project, installation, or purchase. This is an easy calculation most homeowners can find as long as they have the necessary numbers to plug into the equation. First, the Net ROI needs to be calculated; this is where you need to take the final value of investment (FVI) and subtract the initial value of investment (IVI). The resulting number, your Net ROI, needs to then be divided by the Cost. When you multiply this result by 100%, you have the final ROI percentage. For more information on calculating a return on investment, check out Investopedia's breakdown of the equation and its uses.

5 Home Improvements for Better ROI

1. Minor Remodeling

One of the most common mistakes made by homeowners looking to make a positive payback from their investments is falling into the idea that “Bigger is better.” Instead, most of the best ROI projects will come from minor remodeling in places like the kitchen or bathroom, as opposed to major upscaling initiatives. It’s important to keep in mind that the focus of a cost-effective change is to make functional upgrades instead of merely making adjustments that are purely for the sake of appearance. Start with touching up paint jobs instead of redesigning the room, upgrade energy-wasting appliances, and talk to a real estate agent about what trends buyers are looking for in your area. In the west-north-central region of the United States, basic remodeling jobs can recoup over 50% of the cost on average.

1. Replacing Windows

When you take the time to replace windows throughout a building, this can not only enhance the aesthetics of your space but also contribute to improved air sealing, insulation, and durability. There are a variety of options to choose from when you're replacing the frame, sill, or even the entirety of the window; however, the highest ROI typically comes from a vinyl or wood replacement. Wood is most often sought after in classic-style homes, but vinyl is typically easier to maintain and has on average a higher return on investment in the west-north-central region of the U.S. As a homeowner, it's important to consider energy efficiency when looking for replacements, as this can help you to significantly save on regular energy costs. The Department of Energy has a guide to their Energy Star standards and essentials for making environmentally friendly adjustments throughout your home.

1. Reducing Air Leaks

By ensuring the air sealing throughout your house is updated, you can prevent conditioned air and heat from escaping the building envelope through small gaps, cracks, and holes. These openings most often occur from general wear, natural weather damage, and past pest infestations. Homeowners will find the most problematic spaces around windows, doors, and other outside access points but a further investigation may show air leaks throughout the walls, attic, and even in the ceiling of a house. The EPA estimates that having your home properly air sealed and insulated can save homes on average 15% on heating and cooling bills.

1. Upgrading Insulation

Insulation and air sealing are two sides of the same coin that work together to reduce heat transfer, regulate temperature, and improve climate control in your home. If you discover one needs to be replaced, it's more than likely you should take a look into the other at the same time. The main benefit of updated insulation is temperature regulation and the support it provides to your home's climate control capabilities. This material regulates heat transfer, which is how heat moves in and out of your building; the regulation helps to keep in desired warmth during the winter and block unwanted heat during the summer. Updated insulation helps to reduce wasted energy and save you money on regular utility bills by putting less pressure on your HVAC system to keep up with the desired temperature on the thermostat. This is a significant factor for potential buyers since recently upgraded insulation typically means there's been a thorough investigation to detect hidden moisture and mold growth, pest nesting, and air leaks.

1. Replacing Garage Doors

One of the most common and well-known ROI upgrades you can make to your home is to replace the garage door. A new or upgraded garage door installation in the west-north-central region of the U.S. can recoup an average of 58% of the cost, depending on your weather, household habits, and air sealing. Similar to window replacement, this upgrade can focus on functionality and aesthetics at the same time without significantly affecting your cost of return. In fact, in many cases the existing motorized opener can be reused, increasing your recouped cost and improving your long-term savings. While this is one of the best ROI changes to make for older homes, it’s important to consider if the adjustment is really necessary by consulting a professional to ensure you need to go through with an updated purchase.

Improve Your Investment Opportunities with South Kansas City Pros

With the help of industry professionals at Koala Insulation of South Kansas City, you and your household can make informed decisions on the most cost-effective and energy-efficient solutions. Our team offers free evaluations so you have a detailed breakdown of the current condition of your home's insulation and air sealing. This allows you to target pain points and schedule future projects while taking into account your household's schedule and budget. Contact Koala Insulation of South Kansas City to schedule your free evaluation today and learn more about how you can improve your return on investment with insulation and air sealing.