When it comes to home remodels, the money you put in cannot always be recouped when it comes time to sell: some remodel projects add to resale value while others don’t. For those prioritizing how to get best value for their dollar there are some important things to keep in mind. Before you decide on a remodel, consider the cost vs. value, and then decide if the remodel is a worthy investment. Ultimately, you want to improve your lifestyle and, when it comes time to sell, command the highest price.
In general, across many real estate markets, kitchen and bathroom remodeling consistently offer the highest percentage return on your investment, consistently maintaining 100% ROI, meaning that for every dollar spent, the homeowner receives a 100% return on their initial investment. The overwhelming majority of realtors are in agreement that the following remodeling projects will result in the highest return-on-investment (ROI) and offer the best prospect to increase your home’s marketability and resale value.
1. Update Your Kitchen
Creating a modern-looking, functional kitchen can add more than just value to your home: it can boost your enjoyment of everyday activities like cooking, entertaining friends and sharing meals with your family. Moreover, potential buyers see the intrinsic value of this kind of upgrade. In a remodeling project of this kind, you might replace appliances with new, more energy-efficient models, reface cabinets with newer-style wood panels, install new countertops, replace hardware, install a new sink and faucet, add new flooring, repaint and the like.
2. Update or Add Bathrooms
Bathrooms are an important part of a home. If there are not enough bathrooms or if they are very outdated, it will be a big turn off to potential buyers. Updating bathroom amenities and fixtures or adding an additional bathroom if you have the space can really increase a home’s sale appeal.
3. Add a Bedroom
If your home is bursting at the seams, adding a bedroom can bring some much-needed space to increase comfort for your family. Options range from a state-of-the-art master suite to a simple budget bedroom without the frills. Understanding the cost of these options will help you choose the right option for your home and find the best type of bedroom addition to meet your needs and budget. According to a recent article at SFGate, a bedroom addition can result in a 75% ROI.
4. Add a Deck
Because of their low initial cost compared to their value-added at resale, new deck additions consistently rank at 80-90% ROI. If you choose to install a deck, be prepared to plan it out carefully and thoroughly, and perhaps consider including unique features such as built in benches, a built-in oven (a.k.a. “forno”), or a fire pit. Again, bear in mind that you are building to suit your current lifestyle while at the same time calculating that for every dollar spent, you’re quite likely to get a relatively good return on your investment.
5. Increase Your Home’s “Flow”
Dark, cramped rooms are no good when it comes to resale. One thing that homeowners can do to increase the home’s value is to improve the relationship between spaces, also known as “flow”. A canny homeowner might consider the removal of certain interior walls to improve flow and brighten up interior spaces. A more open floor plan will make a home feel larger, brighter, and airier as well as improve opportunities for entertaining, all of which increase resale value.
Removing the right wall creates that spacious layout that tops buyers’ wish lists. A NAHB survey shows that a high percentage of buyers favor designs that are either completely open or partially open around the living room, dining room, and kitchen. That said, a home still needs structural support and definition between spaces, so consult architectural advise before picking up your sledgehammer.
6. Increase Your Home’s Interior Volume
Introducing vaulted ceilings in rooms currently having flat ceilings is another arrow in your quiver for those seeking to improve their home’s resale value. Vaulted ceilings are loftier and more spacious, and, if done right, are highly regarded as value-added in the view of most realtors and appraisers. Those looking into this avenue are advised to be cautious, however. The existing roof/ceiling structure of some rooms naturally lends themselves to accomplish vaulting at relatively low expense, making them a cost-effective option to increase value. In other cases, the existing roof/ceiling structure can make the initial investment prohibitively expensive. If exploring this option, consultation with your architect or similar design professional may be warranted.
For Further Reading:
• HGTV has published an informative article at: https://www.hgtv.com/design/decorating/clean-and-organize/which-home-improvements-pay-off.
•Another resource can be found at HowStuffWorks: https://home.howstuffworks.com/home-improvement/construction/planning/return-on-investment-from-remodel.htm