One of the main issues people have with renovations is justifying the cost. Many homeowners look at the cost of, for example, renovating the master bedroom, but when comparing that to the value it may add to the house, they find it only adds half of what they spend on the renovations. For that reason, many wait until something breaks down before they fix it, but there is a middle ground.
In recent years, Orange County has experienced a housing boom, as has most of the country. However, when comparing the cost of remodeling projects to other areas of the country, Orange County offers a much higher rate of return on your investments. While most markets maintain only about a 40% return on investment you put in, the average ROI for a remodeling project in Orange County is 57.8%, with many located in the 80-90% range.
What does this mean for homeowners? Well, the cost of most remodels are easily justifiable in the current economy, and they should be undertaken as soon as possible before the rate of returns begins to drop. To help bring you more context, here are seven remodeling projects that bring the best ROI in Orange County.
Garage Door Replacement
Garage door replacement makes for a practical and aesthetical remodel. Garage doors are often a decisive and central part of the house exterior, and having a decayed or older garage door can bring down the value of your home. That said, garage door replacements remain a fantastic starting spot for remodels, even more so in Orange County.
In Orange County, the average ROI on a garage door is 99% on the dot. In other words, only about $50-100 of the remodel costs are lost when transferred to home value. So for instance, if the remodel costs you $5,000 (slightly higher than the average of $4,320), you would add $4,950 to your home value. When choosing a door for this remodel, you add to that ROI cost by getting a product that lasts, such as a motorized door on galvanized tracks, with a lifetime warranty.
Manufactured Stone Veneer
Manufactured Stone Veneer is one of the most popular exteriors remodels to date. Many people prefer upgrading their homes with this type of exterior design. The cost to do is practical and at the same time offers you a classic contemporary look of stone homes. The practical reasons for this remodel entail better use of energy (preserves heat in winter and cool in summer), low maintenance costs, and the excellent repellant of water, ice, and wind.
When it comes to crunching numbers, manufactured stone veneer has an ROI of 95%. These numbers mean that now is one of the best times to go for this upgrade. Especially with recent energy challenges along the West Coast, having a home that not only looks nice but saves you money on heating and cooling can be a true boon.
Minor Kitchen Remodel-Midrange
A kitchen remodel offers many opportunities for you to recoup your investment if the current cabinetry has good bones. At 88.7%, the return on investment in most cases is fairly reasonable, given the influence it can have on potential buyers. You can leave the cabinet sections and drawers as it is and replace only the fronts with shaker-style panels. You can also install new hardware to make sure everything looks and feels squeaky clean.
The most pressing components of a kitchen are the cooktop/oven and refrigerator. By replacing these with the latest models, your chances of securing a high bid are increased drastically. To accentuate the aesthetics of your kitchen, replace the countertops and install a mid-tier sink and faucet. For the final touch, repaint the walls, trim, and ceiling, so every element of your kitchen resonates well with the viewer.
Whether you have a mansion or a more modest home, a definitive grand entrance helps add tremendous face value to the home. From a design standpoint, it creates a more defined living space, as many are getting away from open floor plans and ambiguous home spaces. In regards to cost, the project is by far one of the cheaper interior projects, averaging $11,847 in Orange County. The ROI for this type of project is 84.6%, meaning a majority of the expenses will still be added to the value of the home.
Replacing windows is a good remodel not only for added home value but for the energy costs it will save too. Besides keeping you up at night with squeaky sounds, most energy losses come from old windows that are not sealed tightly. New windows, specifically those of vinyl, currently offer a very high ROI of 82%. Wooden windows are only a little less profitable in terms of ROI, sitting at 79.2% return, however, they do offer an aesthetical advantage over vinyl. For the interior finish, stained hardwood can do wonders as it looks pristine and organically blends with the rest of the environment. When it comes to the exterior finish, you can go with a lush custom-tailored aluminum cladding.
Adding a deck to a property can be a great way to add some value to your home. The average deck costs about $30,000, with an ROI of 81.1%. In Orange County, there is a lower ROI for decks made with wood, at 75%, but once again, the style and design of the home could play a key role in which material would be the best choice for your home.
Another crucial remodel over time is replacing siding. In Orange County, the current cost for a fiber-cement siding replacement is $29,428 on average, with an ROI of 76.9%. Vinyl siding is on the lower end of the ROI scale, sitting at an average ROI of 72.7%, but it is still a close competitor. Siding is crucial when it comes to upholding the integrity of your home, so it is a good idea to talk to a professional when weighing the pros and cons of each specific siding.