Homeownership is often the largest financial commitment for many Americans, so it's important to protect and enhance that investment. Timely home upgrades can boost property value, improve curb appeal, and lower energy costs, all while creating a more comfortable living space. If you're looking for smart, budget-friendly upgrades with strong returns on investment (ROI), Presidential Heating & Air Conditioning, Inc. is here to provide expert guidance and support.
Calculating Home Upgrade ROI
Return on investment 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, necessary materials, labor, and other fees.
To calculate the ROI on a bathroom remodel, for example, we’d 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
Our Top Five High-ROI Home Improvements
Many families can’t afford high-end remodels or renovations with significant financing – and they may not need to! There are several affordable and accessible home upgrades that will make your home more comfortable, too.
1. Garage Door Replacement
Often cited as a simple home improvement with the best ROI, replacing an old, weathered garage door immediately boosts curb appeal. If you’re putting your home on the market, start here. This upgrade can have an average of ROI of around 200%!
2. Entry Door Replacement
Upgrading to a new steel front door typically offers a return on investment of 100% or more, so you could get every dollar back.
3. Kitchen Appliance Upgrades
As a standalone project or as part of a kitchen remodel, upgrading to modern, energy-efficient appliances offers an ROIbetween 50% and 95%. Just ensure your home’s electrical system is in good working order before swapping out kitchen appliances to improve the room cosmetically and lower your home’s energy consumption.
4. Curb Appeal Upgrades
Some of the home upgrades with the highest ROI are outside, which makes sense; there’s nothing like a great first impression when someone drives by! Consider making affordable home improvements to:
- Exterior lighting: Add or upgrade existing light fixtures. This is also a good time to implement security lighting. Choose energy-efficient options, such as LED lighting, which can have anROI of more than 100% within a year of installation.
- Fresh paint: A new coat of paint reenergizes any home’s look. Consider choosing a neutral color to attract a wider range of potential buyers.
- Upgrade landscaping: Trim bushes, add mulch and flowers, and add natural rocks and other features to make your outdoor space as inviting as the interior.
5. Adding Insulation
Similar to maintaining your HVAC system, adding insulation can enhance your home’s energy efficiency, offering a relatively short payback period. Insulation can provide anannual ROI of 18.5%.
Insulation may also prolong the functional lifespan of your heating and cooling systems by reducing the frequency and duration of running cycles.
Explore More High-ROI Home Upgrades with Presidential Heating & Air Conditioning, Inc.
As a leading local business, we are dedicated to empowering our neighbors to enhance their properties with smart and accessible home upgrades. From air conditioning to heating, we set the standard in Gaithersburg for quality home services. Our skilled technicians deliver exceptional results at competitive prices. Don’t wait; schedule your service appointment with us today and experience the difference!
Contact us online or call 301-719-3315 to schedule an appointment!