A home’s condition can be divided into four categories by the real estate industry: bad, average, decent, and excellent. When planning a home renovation, keep these questions in mind: “Am I bringing the state of my home into a ‘healthy’ condition?” and “What will this improvement do in terms of value?”
Home improvements affect the value and price of your home. But not all home improvement projects can raise the value of your house enough to cover the whole expense. An update may bring you and your family much joy, but it may not increase the value of your property and may even lower it when the time comes to sell.
Since the kitchen is seen as the heart of the household, improvements in this area usually pay off. A minor kitchen remodels costs more than $23,000 on average and subsidizes about 78 percent of the investment at resale, as opposed to an upscale one, which has a smaller return on investment. It’s a great way to save money and the right option if your kitchen just requires a revamp.
For example, a fresh coat of paint will significantly improve the appearance of your kitchen. To make it more environmentally friendly, consider using low-VOC paints. Other improvements could include updating cabinet fronts and installing natural light to brighten the countertops. Simple, low-cost improvements, such as matching drawer knobs, cabinet pulls, and faucets will quickly bring a sleek touch to space while still having a huge effect when it is time to sell.
A mid-range bath remodel will compensate up to 64% of the cost during resale. And, much as in the kitchen, you can spruce up your bathroom by simply switching out fixtures. Simple repairs like repairing vanity lamps, replacing dated wall coverings, and changing old shower doors will normally solve the issue. Replace the old toilet with a low-flow model that uses less water per flush to make it more energy-saving.
If your house only has one bathroom, it could be more cost-effective to install a second bath or a half bath rather than renovate your current one. A modern bathroom will not only change the interior of your house, but it will also increase its value.
Converting any small or extra space, such as a walk-in closet, an area under the stairs, or an old laundry room, could be less expensive, but this is dependent entirely on the items and accessories you may need. However, a half-bathroom is essential for homes without a main-level bathroom.
Renovate an unused space
Remodeling and using vacant spaces, such as your attic or basement, is a smart way to increase the value and square footage of your house. Finishing a basement and transforming it into an entertainment bar, a game room, or a second living room; converting attic space into a bedroom or a kids’ playroom; or converting a walk-in closet into a home office are all great ideas.
If you decide to remain in the house for a few more years, the extra room will be enjoyed and useful to your family. When the time comes to sell, having an extra space that can be turned into something would be really appealing to potential buyers.
Replace Old Windows
Many potential buyers are now turned off by old, drafty single-pane windows, particularly if energy efficiency is a priority. According to Remodelling Magazine, replacing double-hung windows with insulated, low-E (low-emissivity) vinyl windows recovers about 73 percent of the prices. Windows with low-E coatings tend to maintain a constant temperature in a home by projecting interior temperatures back inside. Similarly, new windows not only assist with energy efficiency but can improve a home’s curb appeal.
Deck, Patio, Porch, addition
Outdoor living spaces are more common as a result of recent lockdowns and stay-at-home directives imposed by the COVID-19 pandemic. According to the most recent Realtor.com® and Toluna Insights study about what homeowners wish they could improve in their house to make it more livable when sheltering in, 9 percent of respondents wished to add a yard or patio. Having plenty of yard space has become the dream as we try to live our lives in the new normal.
Adding a deck is one way to improve your outdoor living space and maximize the value of your house. Although it can cost anywhere from $14,000 to $19,000 on average, it can recoup up to 72 percent of the cost during resale. However, it is also based on the architecture and materials used.
If a simple renovation is all that is needed, consider upgrading your deck or patio by installing minor details such as decorative planters, lighting, and other features that will make it more appealing and increase the value of your house.
The biggest return on investment might be replacing your front door with a new steel entrance door. A house with old doors usually lets in a lot of heat and cold air that can be a big turn-off to prospective buyers and it could be more expensive to live in and maintain. According to the survey, the typical steel entry door replacement costs more than $1,800 and has a resale value of nearly 69 percent.
Garage Door replacement
On the other hand, a new garage door is one investment that basically pays for itself, recouping about 95 percent of the costs at resale. A garage door update also helps to make a good impression on visitors, increase convenience, and add to your house’s curb appeal.
Many people imagine roof replacement to be a repair job, rather than a show-stopping upgrade like a kitchen renovation. However, one upgrade will increase the valuation of your house, and on average, you can recoup almost 66% of the cost when it comes time to sell. Buyers value a modern roof because they believe it would save them the money and time associated with new roof construction. It is particularly important to replace your roof if it is leaking and nearing the end of its lifespan since this could reduce the value of your house.
Adding Stone Veneer
Installing a manufactured stone veneer not only beautifies your house but also increases the value of your land. According to the 2020 Cost vs Value Study, this upgrade costs an average of $9,357 but recoups up to 96% of its cost in resale value. It’s also a flexible project that you can incorporate anywhere on your house, whether it’s on the front porch, around the fireplace, or as a feature wall in the kitchen or bathroom.
Repaint, Minor Fixes
Never underestimate the ability of simple upgrades to increase the value of your house. Touching up flaking or chipped paint, scraping dirt and mold, cleaning the front frame, fixing old doorknobs and handles, and even repairing your mailbox will help keep your house in tip-top condition, showing buyers that you have a clean and well-maintained home.
Kitchen and bathroom remodel prove to be two of the biggest upgrades you can make in your home to increase the appraisal and resale value. Since these are the places where people spend the most time in their homes, researchers believe you can almost always tell whether money has been well spent or not. Often, whether you aim to appreciate your home more or to maximize your return on investment when it comes time to sell, never go crazy and never make a room fancier than the rest of the house.