There’s nothing more exciting and terrifying than the thinking of remodeling a kitchen, bathroom or space in your home. In the real estate world, we know not all remodeling projects are created equal!
In fact some of the smallest improvements can lead to the largest dividends if you do ever decide to sell your home. So how do you decide where to start or which projects will lead to the most return? Use our handy guide to help spend your resources wisely and hopefully see a return when it does come time to sell.
KITCHENS AND BATHROOMS
As a general rule, kitchen and bathroom projects usually yield a nice return on investment. (In our market, typically 90% or more!) Payback value does depend on current market
conditions in your specific area. Most might assume a full kitchen renovation will give the most for the money spent, but what you may not know is that often times a kitchen facelift will actually return more than a full renovation.
Think new paint, refinishing surfaces and upgrading appliances… All which will lead to a more modern feel without the larger price tag and mess of a full renovation.
Keep your design choices classic and product selection pointed towards clean and beautiful and you are sure to see a worthy return! If you do decide to take on a full renovation, we would advise you to develop a budget and a full plan before diving in. The addition of space is another popular way to add value to a home. Adding rooms such as a family room, sunroom, or master suite can tend to help a home fare better at the time of resale. We know larger homes more often than not command higher prices.
LOOK FOR WAYS TO ADD IMMEDIATE VALUE
Other ways to add immediate value to a home would be to consider replacing
windows, doors, siding, adding insulation or repainting the exterior of a home. And although kitchen and bath remodels still seem to take the cake so to speak, these other items can still bring a significant payoff. For those who plan to stay in their home for the foreseeable future, investing in more energy-efficient heating and air conditioning systems or new appliances, can save money all year.
See what other popular remodeling projects provide the best payback!
INVESTMENTS GONE WRONG
At the other end of our investment-to-return spectrum, in our own market, we find finishing a basement, refinishing an office and adding a swimming pool. These additions tend to pay back the least during resale, usually returning less than 50% of the original investment.
Keep in mind other ways to lose on an investment is to try to renovate yourself. We know many homeowners feel they can tackle large home improvement projects themselves. And while we fully admit some can, we more often than not have come across homeowners who have ended up in a mess, with additional financial strain, which could have been avoided had a plan been in place from the start.
— USE A LICENSED CONTRACTOR FOR ANY LARGE RENOVATIONS
For a major renovation we recommend starting with a licensed contractor who can see the whole project and become a valuable part of the project being completed on time and in budget. Many contractors can help negotiate costs on materials and can help advise you on and needed work permits necessary for your city.
So whether you decide to try a small facelift or dive into a full home renovation, we hope the change leads to a more beautiful and happy home to enjoy until it’s time to move on with a healthy return on all your invested work! Happy Renovating!
If you would like to know if you should renovate your current home or pursue the path to a new one, we invite you to connect with us for a *FREE CONSULTATION.*
We would be happy to talk to you about the value of your current home in as-is condition and make recommendations for small or large ways to renovate to increase your home’s value! Let us help you protect your investment!