There are a plethora of reasons why homeowners engage in a residential renovation or remodel. They may be looking to improve the home for themselves, or possibly are considering selling at some point. Even if it is the former, decisions about what is undertaken should ensure that if they do change their mind in the future, the home's value has increased because of the modification. This is defined as having a positive return on your investment (ROI).
The many possible options and pathways that you can choose to pursue in your project will all have an impact on your final ROI. Some will a have a large positive impact, while it is also possible to have a negative impact. It is recommended when planning your project, you speak with local real-estate agents to understand the market in which your home is situated. This insight can help steer you in the direction that others have taken to grow the value of their properties. While of course you must do what is best for your specific situation, the methods below are most likely to yield an increase to your home’s value.
1. Curb Appeal
First impressions are everything in the housing market. Having that wow factor, from the first glance of your home, is crucial to impressing guests or drawing in prospective buyers. Small and large projects can greatly help improve this. A new paint job can do wonders to a dreary out of date look at a relatively low-cost, maximizing value. Other options such as garage door replacement and the addition of decorative stone-veneer have also proven to provide great returns. Think about what is going to truly create the most dramatic visual improvement and then decide if that cost is worth the reward.
2. Going Green
Replacement of inefficient and wasteful assets for new energy-efficient options is always going to be a winner in gaining your money back in the future. Larger investments can include HVAC units, water heaters, or other major appliances. A less expensive option which will still be perceived as significant is switching all lighting to LEDs. Their significant lifespan and minimal power consumption make them a great step in the direction of improving your home’s carbon footprint.
A huge positive aspect of a kitchen facelift is that it can be completed without structural changes to your home. The improvement in both aesthetics and functionality, while not considered inexpensive by any means, has shown to be extremely valuable. Replacing kitchen countertops and refinishing cabinetry are significant upgrades as they make up the majority of what gives your kitchen its character. Additionally, replacing the cabinetry hardware is one more step that can essentially make an old set of cabinets appear brand new. Old appliances are a massive turn off for both their appearance and ability to function at a high level. Whether for you, or a new owner, fresh appliances will only increase the pleasure of working and spending time in the space.
4. Bath Upgrades
Often the most important factors home buyers take into account when searching for a new home is the condition of the kitchen and bathrooms. This makes upgrading your bathrooms, like your kitchen, a great option to almost guarantee a great ROI. Bathroom renovations can be expensive, but if done correctly, great results are able to be attained on a reasonable budget. Generally the smaller square footage of bathrooms limit the amount of material that will be needed. This can mean that with the right choices, improving flooring or a vanity countertop can be very economical. Finding elegant and sophisticated fixtures can also make a dramatic difference without breaking the bank, and like in the kitchen, cabinets can be refinished instead of being replaced.
5. Finish Unfinished Spaces/Add Bedrooms and Bathrooms
Adding usable square footage to your home is always a win. To gain the most value, renovating an existing unfinished basement or attic into an added bedroom or bathroom is ideal instead of gaining those spaces by a costly addition. These new functional areas will not only improve your lifestyle, but will also add your home to the list of those looking for a residence with that specific bed and bath room count, inherently increasing your home’s value.
All of these possibilities are great for maximizing your ROI and increasing the value of your home after a remodel or renovation. Do be careful though, not all changes can positively affect your home’s value. Unconventional wallpapers or bright loud colors which you may love, can be a turn off to potential buyers. It is even possible to over upgrade your home which can place it outside of the market for the geographical location in which it is located. Always be aware of your areas average home sale comparative prices and try to shoot for a value towards the higher end of the mean. This will assure increased home value whether you stay in your residence for the long run or sell for gains in the future!
Want more insight into how RessaBuilt can help transform your home? Check out the informative articles on our blog, The RessaBuilt Report!
Michael Ressa : Apr 17, 2023 9:00:00 AM
