As appealing as they can be, not all home renovations offer a good return on investment (ROI). In fact, very few sold properties break even on their renovation value, much less bring any profit. So, does this mean that home renovations are just a waste of money? Not necessarily. It could be because our children have flown the nest and we have more space than we know what to do with. Maybe you need to sell your home for financial reasons, as a smaller home can sometimes mean lower utility bills. And it could also be because we suddenly find ourselves living alone if our relationship status changes.
When faced with this scenario, there has to be some sort of equation through which you can enjoy the renovation as well as profit from the investment. So, before rushing into any miscalculated decisions, consider these worthy renovations that can help you sell your home for the maximum value.
It’s undeniable how a kitchen can affect the overall sale value of the home, with minor remodels providing an approximate of 98.5% ROI and major remodels giving 91%. However, sometimes kitchen remodels are just a losing deal, so the first step should be finding an answer to this common question: how much will my kitchen remodel cost? In order to figure that out, you should start by listing your end goals of the remodeling and setting up your budget, while keeping the resale time and value in mind. Also, the cost of a kitchen remodel may vary depending on where you live. For instance, the average cost in Northern Virginia is between $14,000 and $32,600, while in Dallas it may cost between $10,400 and $28,000.
Just like kitchen remodeling, bathroom remodeling can be done on both a minor and a major scale. Minor remodels, in the form of replacing fixtures, recaulking or reglazing tubs, replacing an old shower, and redoing the walls, are the most lucrative remodels you can do, giving you a 102% average return on the sale value. Major remodels will be much more costly with only a 93.2% return on resale value, although they may be necessary depending on your location and target segment. Renovating your bathroom to include a walk-in shower or a modern makeover can greatly increase your home value for prospective buyers, but only if the rest of your home matches their criteria.
Garage Door Installation
Here’s another simple yet lucrative renovation to maximize the resale value of your home: installing a garage door. If you already have a door, consider replacing it with a newer and more attractive one. Such a simple installment will easily cover itself in the resale, giving back 98% of its original value.
Deck or Porch Addition
Adding a deck, patio, or porch to your home is another way to maximize your home’s resale value by targeting a more luxurious buyer segment. This addition can pay back 90.3% to 100% of its value at resale in the north, although this percentage can fall down to 83% in the south. Aside from that, adding a deck is one of the best ways to remodel your entrance and enchant incomers long before they’ve set foot in your home, it’s also a great way to hide exterior flaws and switch the onlookers’ attention to the charms of the house.
Giving your house a paint makeover can be exhausting, but it’s surely worthwhile. There’s nothing like a new paint makeover to give life to the old areas of your home and restore its modern air. However, if you’re tight on budget, then it’s important to choose the areas you’ll be repainting wisely. For starters, the exterior look and entrance would certainly hold a higher priority than the attic.
Adding renovative touches to increase the value of your property is smart, but what’s even smarter is fixing any issues that would harm the current value of your house. Issues such as mold, decaying fixtures, or leaking pipes would only harm your resale value, regardless of how elegant the renovations you’re making are. Before going big, make sure the current infrastructure and fixtures are bulletproof by properly maintaining your roof, HVAC system, and infrastructure as deemed necessary.
Renovating for efficiency is just as important as maintenance renovations in this age. The older the house, the more important it is to check for its efficiency state. This is especially necessary when it comes to energy-consuming appliances and fixtures, such as the air conditioning systems, fridges, stoves, lighting, and any electrical appliances in general. The same goes for water efficiency where you’ll need to substitute old toilets with newer low-flow fixtures. Replacing old windows with more energy-efficient ones is another worthwhile investment.
When it comes to renovating your home, spending more doesn’t necessarily mean getting a higher ROI. Your decisions need to be wise and well-informed, taking into consideration both the direct value of remodeling the house and the resale value when the time comes. Once you’re done with your calculations, you’ll be able to make the most profitable decisions; whether it’s a minor renovation in your kitchen, a major bathroom remodel, or a new deck in your yard.