Watching the latest home renovation shows you might have the impression that by investing a few dollars in your home renovations, you’ll see a massive return back into your home. This isn’t fully true. First of all, you need to consider the value of the homes in your immediate area. Having the most-upscale home on the block might be nice, but it won’t necessarily increase the value, as homes generally depreciate in value over time while the land appreciates. This is called overbuilding for the neighborhood. Your home value is mostly based on square footage of your home and property, the location, the market, with the interior of the home having the least impact on value.
Renovations that don’t add value include:
- · Adding a swimming pool
- · Adding wall-to-wall carpeting
- · Updating plumbing, electrical or other systems (these are expected to be in good order and while they won’t increase value, not having them done can decrease the value)
- · High-end fixtures and appliances (these might sell the home faster, but won’t necessarily get you more money for it)
- · Elaborate landscaping (this could even decrease value if it is seen as too much work)
But, there are some renovations that can increase the value of your home and give you the best return on investment after these factors are all accounted for. These include:
- · Kitchen update
- · Bathroom update
- · Exterior projects
You’ve heard it a million times – kitchens and baths sell houses. These renovations are expensive and time-consuming and can impact a homeowner’s quality of life, so most buyers don’t want to have to do them. But, surprisingly, a kitchen face-lift or minor reno will give you more return on your dollar than a full kitchen remodel. A face-lift includes a paint job, refinished surfaces (cabinets, counters) and upgraded appliances. If you are looking for value in your renovation, you’ll want to choose finishes that appeal to everyone – stainless steel appliances, functional features like pantries and drawers, granite counters and a neutral palette.
The same goes for bathrooms as it does for kitchens – people don’t want to do the renovations, but they want a functional and beautiful space. Add a second sink, upscale shower head, beautiful faucets and fixtures, great lighting and mirrors and a neutral color scheme and you’ll already improve your bottom line. Other bathroom renovations that increase the value of your home include having plenty of storage space, a high-end and quiet ventilation system that will protect your investment and in-floor heating. While those are luxuries, they go a long way to increasing value.
One important exterior project that increases the home’s value includes repairing or getting a new roof if it is needed. Waiting too long to replace a roof could mean water damage inside the home or the potential for it and home buyers don’t want to imagine this scenario. Seeing a newly-added roof gives buyers peace of mind and will increase the value of your home. Adding a deck or patio, some landscaping, fencing and walkways will also drastically improve the value of your home and increase your curb appeal. While these may seem like cosmetic renovations, they will increase the functionality of the home as well.