So you’ve decided to tackle some renovations on your home – good for you! But, do you know which renovations actually increase the value of your home? You obviously don’t want to do work on your home that brings little value. Let’s talk about renovations that will give you the most bang for your buck, in terms of return on investment.
Renovations that don’t add value
There are some additions you can make to your home that might actually decrease the value or cost you money you won’t get back. These include adding high-end fixtures. While these look amazing and might sell your home faster (if you plan on selling), they won’t add any increase on investment. Wall to wall carpeting is one that might actually decrease the value of your home, especially if you already have hard flooring. Most people want hardwood and ceramic and if a potential buyer has to rip up your new carpets, this will decrease the value. Similarly, while curb appeal is important, if the landscaping is too elaborate, you won’t see a return on your money. If buyers see your beautiful landscaping as too much work, it might decrease the sale price.
Renovations that do add value
There are quite a few renovations you can do to your home that will give you a return on the money spent. The biggest one is, you guessed it, the kitchen. Kitchens sell homes – not the curb appeal, not the large bedrooms, not the open-concept living room – the kitchen. A kitchen that looks beautiful and is functional and modern will always increase the value of your home. Most buyers won’t buy a home with an outdated kitchen as kitchen renovations are expensive and a lot of work. If you can’t afford a full re-do, a facelift will still bring you a return on value. A face-lift includes:
- · Painting
- · Refinishing of cupboards and/or counters
- · Upgraded appliances
Another area where buyers don’t want to have to do any work and will add a ton of value to your home is the bathroom. If you can renovate to make the space functional and beautiful, you’ll make money on this room. Adding a second sink, updated fixtures, new lighting and upscale mirrors will definitely bring your home value. If you truly want to make an investment, features like in-floor heating and quiet and powerful ventilation will definitely help.
When doing renovations, you want to ensure you aren’t overbuilding for your neighborhood. This means that each neighborhood has a low and a high price point and you want to ensure you aren’t putting in more money than your neighborhood is worth. For example, if your home has only 2,000 sq feet and most homes that size sell for $300,000, adding a $75,000 new kitchen won’t bring your value over $400,000. While your renovations might bring you to the higher end of your neighborhood’s value, it won’t bring you over. Nobody wants a spectacularly done home in a low-end neighborhood.