Home Renovations That Pay Off, and a Few That Don’t–
Often times, when homeowners consider making updates to their homes, they do not necessarily consider how the updates will impact their homes’ resale value down the line. While most home renovations are likely to increase the value of your home, certain remodeling projects will give you a greater return on investment. One the other side of the coin, some home renovations can fall flat in helping you generate a healthy return on your investment.
According to a Remodeling Magazine survey of real estate professionals, “The average renovation pays back about 65 percent of its cost if you sell your house soon after the remodel is completed.” Although, US News notes that “the amount of payback varies widely, depending on the type of improvement.” The following are a few tips from us and US News on home renovations to help you get the most bang for your buck.
1. Upgrade your Kitchen
Time and time again, we have seen that in the realm of home renovations, the kitchen is king. As US News notes, “Modern families spend most of their time in the kitchen, and so an investment to improve the look and functionality of this popular room is typically a good one.” If you are willing to take on a project as big as a kitchen remodel, you will likely see a great return on your investment.
2. Use Quality Materials
Whether you’re choosing countertops for your kitchen remodel or tile for a bathroom upgrade, always use quality materials. While cheap materials might seem cost effective at the time, they will rarely improve your resale value. On the other hand, you should be conscious that you may not generate your desired return on investment when choosing top-of-the-line finishes. Depending on your neighborhood and the average buyer in your area, people may not be willing to pay a premium price for the highest quality materials. When it comes to selecting building materials and finishes, find a quality happy medium.
3. First Impressions Count
It’s hard not to judge a book by its cover, so make a good first impression on a potential home buyer. We suggest upgrading old siding, replacing dated windows, and repairing tattered roofs. Even a something as simple as updating and replacing your front door can make an impact.
4. More Space Doesn’t Always Mean More Money
Home additions are typically some of the most expensive renovation projects to take on, and because they can be high in cost, they have the potential to fall flat in generating a great return on your investment. As US News notes, “Lower-cost improvements typically offer better payback than major renovations.”
At the end of the day, you are the homeowner and are likely choosing how to renovate your home based on your current needs. However, whether it be upgrading fixtures in a dated bathroom, replacing old windows, or taking on a total kitchen redesign, you should consider how your home renovations will impact your home’s future resale value.
For more helpful remodeling tips, the full Money.US News article can be found here.
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