Renovations are a great way to increase the enjoyment of home ownership. Additionally, they can raise your home’s monetary worth when the time comes to sell your property.
Some renovations can raise your home’s value by more than the actual cost of the work. If you’re looking for a solid return on investment (ROI), start by reading up on local trends in home design. Thinking about what buyers want – and what they don’t care about – can be the difference between sinking your money into a project without a good return and investing in your home smartly.
To understand the numbers clearly, consider this example. Let’s say a particular home renovation has a 160% ROI. That means that If the renovation cost you $1000, it has increased the value of your home by $1600.
On the Outside
While a modern kitchen or bathroom remodel may seem like obvious places to start, recent data supports the idea that buyers are increasingly interested in “curb appeal.” According to Remodeling Magazine’s 2017 Cost vs. Value report, merely updating or even repainting your entry door can provide you with a massive 90.7% ROI. Additionally, investing in the look of your outdoor space, including porches, paths, and lawns, could make a big difference in impressing buyers.
In terms of bigger projects, adding a patio or deck can earn you between 50-71% ROI, while installing a new roof or updating your siding can add 68-76.4% ROI. An updated roof may not be glamorous, but consider that in addition to the security a new roof offers for you and your family, the expense that went into it will come back to you plus possibly 68.8% when you sell your home.
Don’t ignore the growing favor of curb appeal during the reselling process. You could miss out on a lucrative deal before the potential buyer even walks through your door.
On the Inside
There are two sure-fire ways to up your property’s value: remodeling your kitchen and remodeling your bathroom. The improvements made here are as much for the gratification of the homeowner as they are for the increased worth of their space. These upgrades can get pretty costly, but even minor renovations to your bathroom and kitchen can provide you with a 64.8% – 80.2% return on investment, respectively.
For instance, you could replace appliances in your kitchen to up its value. You could also just opt to replace the countertops or refinish the cabinets. Those changes are useful in modernizing the room without breaking the bank. In the same vein, you don’t have to install a new clawfoot bathtub in your bathroom, but you could replace an old toilet with a low-flush model or switch out old fixtures, refreshen the caulk, and thoroughly clean the grout. Those modifications can be inexpensive yet highly effective in attracting a buyer.
If you’re looking to go a little bigger with your renovations, creating space is very popular. By knocking down a wall or two you can encourage a natural flow to the area. This is currently a major trend in home buying, and when done well it can make your home attractive to those willing to spend more on a modern open floor plan.
Adding rooms is another way to create more space. Building a master bedroom suite, family room, or another story can get you over a 60% ROI. This can be quite expensive and involved, but depending on your budget, options, and resale goals this a great way to capitalize on the worth of your home while expanding your living space for your own enjoyment.
Upgrade The Value of Your Home Outside of Renovations
Just like with cars, keeping up with the needs of our property can extend its life and value. You can increase your resale profit before you even think about selling your home by engaging in basic home-care. Replace your gutters as needed, fix leaks in plumbing and windows, change out air filters, and have major systems inspected. (Even replacing your attic insulation with fiberglass is shown to have over a 100% ROI.) These types of maintenance tasks will raise the quality of life for you and future buyers while boosting the efficiency of your home.
It would serve you well to consider renovations no matter where you are as a homeowner. However, remember that the most important aspect of your home is how you live in it. If you’re planning on staying put for a while, concern yourself with upgrades for your own happiness. Take care of your space, maintain it, and treat it with essential upkeep. When the time comes to consider selling, you can focus your remodeling efforts on the latest leanings of the market. Until then, we recommend remodeling to create the space in which you want to live.