“Is this renovation going to pay off?” It’s a question that plenty of home owners ask themselves when they contemplate a remodeling job to boost their home’s value. The answer to this question will determine how much more they can get for their house come resale time.
There are a bunch of remodeling projects that offer the potential for a big return on investment (ROI). But by the same token, there are also plenty of projects that will do little to add any perceived value to a home.
Stick to the following remodeling projects to ensure a higher ROI and more money back in your wallet when you sell.
Revamping your kitchen can return you as much as 168% percent of your investment – when done right, of course. It’s the kitchen that homebuyers look at first when they are browsing for a new home. Even if your home has an awesome basement recroom and an ensuite, if the kitchen is outdated, the majority of buyers won’t be too impressed.
Your ROI will depend on how extensive the remodeling job is, and what you decide to equip the kitchen with. One of the key aspects to a kitchen remodeling job is not to go overboard – you don’t want to jack up the price of your home that’s way out of the average price range of the local market. For instance, if your neighborhood commands an average home value of $250,000, and you put in a $60,000 kitchen, you could potentially be out-pricing your home.
A major kitchen renovation might not be a good idea if the room only needs a cosmetic facelift. It’s not always necessary to completely gut out the kitchen if it’s in pretty decent working shape already. Many times, less-dramatic updates – such as replacing the countertops, upgrading appliances, and installing new light fixtures will often do the job.
Make sure you’re not overlooking the possibility that your kitchen indeed needs a full-out remodeling job. Making the mistake of choosing only a cosmetic facelift when the room actually needs a complete remodel will cost you. For instance, determine whether or not the cabinets are still holding up, or if they’re in need of total replacement before you simply opt to only reface the cabinet doors.
Make sure that the renovation is done using modern finishes – an affordably-remodeled kitchen that’s done in poor bad taste could negatively affect the value of your house.
Investing money in a bathroom renovation – or even adding one completely – can also yield an ROI of as much as 168%. The trick is in doing it the right way. Spending too much money on extravagances that buyers aren’t exactly looking for will only result in you getting less on your returns. But only putting the bare minimum can have the same effect.
For instance, if buyers in your area are looking for double sinks and a glass-door stand-up shower, and all you’ve got is a tiny bathroom with a pedestal sink and a bathtub, you might turn buyers off. By the same token, if buyers in your area aren’t wiling to pay extra for crown molding, marble counters and teak vanities that you installed in your bathroom, you may have spent more money than you’ll be able to recoup.
Even just giving your bathroom a simple update, such a new coat of paint, a new sink faucet, or a new toilet can be enough to bump up the value of your home a little. That, of course, is assuming the rest of the bathroom is in decent condition.
Whether it’s the interior or exterior, a paint job can yield a return of as much as 112%. It’s an affordable way to freshen up a home and significantly improve the look of a space. It’s also an effective way to get rid of any unsightly scuff marks or crayon drawings on the walls from the kids.
The color you choose is key – painting your home a bright orange is probably not the best idea. You’d be hard-pressed to find a home buyer that’s in search of home specifically with these colors in its decor. Instead, a paint color in a neutral hue is what professional appraisers and home stagers typically suggest. Buyers are better able to see the potential of your home with a fresh canvas, which is why the ROI for this job is so high.
New Hardwood Flooring
One of the top features that homeowners covet when they’re searching for a new home is new hardwood flooring. And for good reason – hardwood looks fantastic, it’s classic and timeless, and it’s durable.
It can also be expensive, which is why it’s important to weigh your options before dishing out the big bucks for the significant impact that hardwood flooring delivers to the look and value of your home.
There are different wood materials to choose from, as well as thickness of the planks that can dramatically affect the price. At the end of the day, new hardwood flooring can deliver an ROI of as much as 102%.
Any home renovation should always be done with the surrounding neighborhood in mind. You don’t want to add extravagances that the area simply doesn’t call for – it’ll just be money wasted. Instead, stay in line with what home buyers are looking for in your neighborhood, and choose finishes that are more highly sought after.
Your real estate agent is always a solid source for this type of guidance to help ensure your remodeling job will put as much money back in your pocket if you should ever sell in the near future.