Here Are Renovations That Add Value to Your Home and Those That Don’t.
When planning a home renovation, serious questions arise: is it worth completely redoing a kitchen for your money? How about adding a pool or finally completing a basement? The answers depend on what you hope to receive. If you just want to enjoy the improvements, it’s easier to calculate the cost-benefit ratio. However, if your main goal is to increase resale value, choose projects wisely – not all of them will pay off by closing time.
Always tackle repairs first.
Nobody wants to buy a home that hasn’t been looked after properly. Before you start thinking about adding value with a renovation, make sure you are not losing anything to renovation problems. If you’re unsure of where to start, schedule a preliminary inspection to check your home’s plumbing, electrical and climate systems, as well as mold and structural damage.
Refresh your kitchen and bathroom
Kitchens and bathrooms are used every day and are often the first rooms to look dated, making them ideal for renovations. But a major overhaul is a huge and costly risk. Instead, Family Handyman recommends focusing on usability improvements and light cosmetic upgrades that are inexpensive and popular with shoppers.
In other words, your goal is to make these rooms more functional and a little prettier, not completely change them. If your appliances, plumbing, or countertops do break, be sure to replace them. But if that’s not the case, you can probably get by with new drawers or a cute apron . The seller’s guide at home Zillow.com highly recommends installing new washbasin fixtures and re-caulking or sealing the bathtub to spruce up the bathroom without breaking money .
Make a priority curb appeal
Exterior cosmetic enhancements will make your home more beautiful on the outside and improve other additional aspects such as weather protection and energy consumption. Unsurprisingly, they consistently top the rankings for home renovations with high ROI.
You can go as big or small as your budget allows. Replacing vinyl siding in your home or installing tiles on your roof will be a long and expensive process, but unlike billions of dollars in kitchen renovations, it will likely pay off. On the other hand, garage door replacement offers a fantastic return on investment; Family Handyman , Forbes , Zillow, and Realtor.com recommend him for this very reason. Replacing or even repainting your front door provides the same return on investment.
How to Invest in Energy Efficiency
Climate change has increased the need for energy efficient homes, and from now on, demand will only grow. Anything you can do to keep your home warm in winter and cooler in summer is probably worth the money. This could mean replacing old single windows with double or triple vinyl windows, insulating your attic , upgrading to high-performance appliances, or even overhauling your water heater and HVAC system. A preliminary examination should identify all major problem areas.
How to add usable square footage
Increasing the floor space of your home is an expensive proposition that almost always increases its value. A complete basement and / or attic finish is a great way to do this, as is a back deck. Just keep usability in mind: HomeAdvisor recommends adding a bathroom to your finished basement and choosing an overall design that keeps things as light and vibrant as possible.
Don’t be a trendsetter
If you’re renovating with resale value in mind, the single biggest mistake you can make is doing too much compared to other homes in the neighborhood. It makes sense to invest tens of thousands of dollars in individual tiles, decorative lamps and household appliances only if this is the norm in your market; otherwise, you just lost a lot of money. It’s the same with everything super-fashionable. For example, faux stone veneer now has a ridiculously high ROI – around 96% of the project value , according to Realtor.com – but it won’t do you any good if it goes out of style where you live.
Do not put in the pool
Pools are a money sink, simple and straightforward, and there is no guarantee that potential buyers will be willing to bear such long-term costs. It costs $ 36,750- $ 66,500 to install just one HomeAdvisor underground pool , which is money you are unlikely to get back at closing time. (It’s worth mentioning that above ground pools never add value .) The only scenario in which it makes sense to add a pool is if you’re the only home in the neighborhood that doesn’t have one, and the others stay out of the way.
Don’t tear down the walls
Open floor plans are still found everywhere, but their popularity has been steadily declining. Think twice before taking down walls and opening things – it’s expensive, destructive, potentially dangerous, and definitely not a one-way ticket to higher appraisals.
Do not do it yourself (if it’s not very good at it you)
Few things lower the value of a home like a bad DIY renovation. If you are unsure of your abilities, leave it to the professionals. It is better to pay professional painters to do a great job than to waste money and time doing controversial and inferior work yourself.
When planning your pre-sale renovation, keep in mind that these tips only apply to projects that are solely intended to increase the final sale price. If you really enjoy a project on your “not to” list on a personal level – and you will be staying home long enough to enjoy it – then you should! But don’t expect a major renovation to magically affect the value of your home. Take care of the overhaul and keep the rest simple.