Homeownership is the largest investment for most Americans. Timely upgrades to your home can significantly increase its value, enhance curb appeal, and reduce energy costs, all while making your home more comfortable for your family. If you’re interested in affordable and cost-effective home upgrades that offer a proven return on investment, The Plumbing & Air Service Co. can assist you.
How To Calculate Your Home Upgrade’s ROI
To calculate the return on investment (ROI) for a home upgrade, use the formula that includes the cost of the upgrade and the corresponding increase in property value.
ROI = (Net profit/cost of investment) x 100
The net profit is the actual or expected financial gain from the investment minus its cost.
The cost of investment includes the total expenses, including:
- Materials
- Labor
- Permit fees
- Ongoing subscription/service fees (if applicable)
To calculate the ROI on a bathroom remodel, for example, we’d plug in the numbers:
- 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 many home remodeling or renovation 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 – and they may not need to spend that much, anyway. There are several affordable and accessible home upgrades that will make your home more comfortable, too!
1. Replace Your Garage Door
One of the most cost-effective home improvements, garage door replacement offers an immediate curb appeal boost, especially if it’s insulated. New garage doors may offer an average ROI of around 200%!
2. Replace Your Front Door
Front door replacement is a visual upgrade that adds security, too. A new steel front door offers the best return on investment at around 100%. That makes it a very safe investment!
Another eye-pleasing upgrade, upgrading to a new steel front door typically offers a return on investment of 100% or more, meaning you’ll get every dollar back.
3. Upgrade Your Kitchen Appliances
Replacing older appliances with modern, energy-efficient models offers an average return on investment between 50% and 90%. Whether you’re completing a major or minor kitchen remodeling or just upgrading to improve efficiency, make sure your home’s electrical system is in good shape first.
4. Enhance Curb Appeal
Among the best home upgrades for optimum ROI are exterior enhancements. 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 also extends your HVAC system’s functional lifespan by reducing the frequency and duration that heating and cooling systems need to run.
Cost-Effective Home Plumbing Upgrades
Upgrading plumbing fixtures and integrating smart home tech might not be the stuff of Southern Living covers, but they provide an immediate cost savings and could prevent big issues.
- Upgrading to low-flow toilets offers an average ROI up to 100%, and it’s an inexpensive, quick process.
- 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 The Plumbing & Air Service Co.
As a local business, we take pride in helping our neighbors enhance their properties with smart and accessible home upgrades. From HVAC services to plumbing, we are leaders in home services in Greensboro, providing exceptional work at honest prices. Schedule your service appointment with our friendly technicians today!
Ready to get started? Call 336-502-8540 or book online today!