Homeownership is a major financial commitment, so it's vital 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), Mission Plumbing Heating & Cooling is here to provide expert guidance and support.
How To Calculate Your Home Upgrade’s ROI
To calculate ROI for a home upgrade, use a formula that factors in the cost of the upgrade and the increase in property value it provides:
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, encompassing 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
5 High-ROI Home Improvements
Most families can’t afford high-end remodels or renovations with significant financing. However, the good news is that they may not need to spend that much, anyway! There are several home upgrades that are affordable and accessible, and they’ll all make a home more comfortable, too.
1. Garage Door Replacement
Often cited as a cost-effective 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. Upgrading to a new garage door has an average of ROI around 200%!
2. Entry Door Replacement
Another eye-pleasing upgrade, upgrading to a new steel front door typically offers a return on investment of 100% or more, so you’ll get every dollar back.
3. Kitchen Appliance Upgrades
Replacing older appliances with modern, energy-efficient models offers an average return on investment of between 50% and 90%. Whether you’re completing a major remodel or just upgrading to improve efficiency, make sure your home’s electrical system is in good shape before you get started.
4. Enhance Curb Appeal
Exterior enhancements are among the best home upgrades for the best ROI. Repaint your home with a neutral color, upgrade your landscaping, tidy up any bushes and flowers, and don’t forget about lighting! Security lighting is always a plus; just choose LED bulbs, which offer an ROI of more than 100% within a year.
5. Upgrade Home Insulation
Adding or replacing insulation substantially lowers your home’s energy costs and usually pays for itself in just a few years. Proper home insulation can also extend your HVAC system’s functional lifespan by reducing the frequency and duration heating and cooling systems run.
Possible Plumbing Upgrades
Although they might not be as eye-catching as a shiny new washing machine or a vibrant paint job, there are some fun and affordable plumbing upgrades that offer great returns on investment!
- Low-flow toilets are inexpensive upgrades that lower water consumption and offer average ROIs up to 100%.
- Smart plumbing technologies, such as leak detectors or sump pump alarms, offer peace of mind and protect against costly water damage.
Explore More High-ROI Home Upgrades with Mission Plumbing, Heating & Cooling
We’re your go-to home service team in Shawnee, dedicated to making your property even better. Whether you need help with HVAC, plumbing, or any other upgrades, we’re here to provide top-notch service at fair prices. Our friendly technicians are ready to assist you—just contact us to schedule your appointment today!
Contact our friendly team or call 913-347-5425 to schedule your appointment today. We look forward to helping you!