You're ready to sell your home, so you've been weighing just how much you should put into repairs and upgrades so you can get a good price. Perhaps you're unsure which kinds of upgrades are likely to pay off when you're bargaining with a potential buyer. Here's where knowing something about ROI, or return on investment, can help boost the sale price of Beavercreek homes for sale, including yours.

Read on for some good advice from our REALTORS®.

What Does ROI Mean?

You've likely heard about ROI. You know it's got to do with how much you invest in a renovation and how much you can ask for it when you're selling your home. But does investing in a renovation mean you can recoup the outlay when you're ready to sell? Mmm, not necessarily.

Here's the formula. The contractor charges you between $1500 and $3500 for the installation of insulation in a 2000-sq. ft. attic. This is, by the way, one of the best improvements you can make for selling your home, but we'll get to why in a moment. Anyway, the price will depend on whether you are leaving old insulation in place or yanking it all out before you install the new. It also depends on how accessible your attic is, and other factors. Let's say your cost is $3000. Your real estate agent says you can increase the selling price by $3500, with $500 as your investment gain.

Subtract the cost from gains. Then divide that $500 gain by the original cost. That/s $500 divided by $3500, which equals a 14 percent return on investment. Hey, congratulations. You made money.

Well, maybe. Unfortunately, the money we put into renovations doesn't necessarily come back in full when we sell our home. Here's a bummer of a stat: homeowners generally recoup only 64 percent of their outlay for a renovation. So says Remodeling Magazine.

The fact is, renovation ROIs can be great or not so much. So the key is knowing which ones are best to invest in. In general, lower-cost renovations tend to pay off better. Here's a list of ROI recommendations:

1. Bigger isn't better. Forget about adding that master bedroom at $250k. It won't pay off; you can expect to recoup only 57.2 percent of the costs.
   
   
2. Lower-cost projects rule, giving better returns. Remodeling Magazine lists four projects costing less than $5000 that are among the top five when a house is sold. The top-returning renovation: attic insulation.
   
   
3. Energy-efficient renovations shore up ROI. And one of the top energy-efficient renovations is new fiberglass attic insulation.
   
   
4. Safety pays off. Another top renovation is safety features, such as a steel entry door, or new garage doors.
   
   
5. Small kitchen projects help sell a home. It doesn't have to be big improvements; even small jobs like replacing cabinet hardware can help you sell. Or, if you want to do a minor kitchen remodel, it could return about 83 percent of its cost.

Here are some additional projects that will help you sell your home.

1. Landscaping: Can return on average 100 percent of your investment.
2. Minor bathroom remodel: Could return an average of 102 percent.
3. Deck/Patio/Porch addition: Can return an average of 90.3 percent. 
4. Major bathroom remodel: Could return an average of 93.2 percent.
5. Replace windows: Returns an average of 89.6 percent.

Got questions on ROI you'd like to discuss? Contact Wright-Patt Realty today.