Home improvements can make life on your property easier, more convenient and sometimes even more affordable. If you’re considering putting your home on the market, there are improvements you can make to attract potential buyers. But will they increase your home’s resale value enough to justify the investment? There is a trick. Spend on home renovation only what you can recoup (or mostly recoup) when you finally make the sale.
Consider the cost versus the value, and decide if the remodel you want to do is a worthy investment.
Each year, remodeling magazine puts together a cost-vs.-value report. They compare the average cost of 22 remodeling projects with the value where projects retain at resale in 136 U.S. markets.
So before you pick up your sledgehammer, or contact your contractor find out what specific types of home renovations. Make sure it can bring down the resale value of your home or make it tougher to eventually sell.
1. Upgrade the Kitchen – Similarly, a lot of people want to purchase a home with a kitchen that is already fairly upgraded or very upgraded. According to HomeAdvisor “Based on the cost of your home, if you choose to install granite or marble countertops, will you be able to recoup that money? Take a close look at costs when remodeling kitchens. Things such as updated appliances or a window over the sink can add a lot of appeals.”
2. Update or Add Bathrooms
Consider a facelift to your master bath—and if your house could also use an additional bathroom, that can be money well spent (often recouping 80% to 130% of your investment). Adding a room can be incredibly expensive and you may only recoup 50% to 80% of that cost when you sell.
3. Deck Addition – A deck or a second-floor addition can really increase your home’s value, these improvements can require most homeowners to take out a loan to complete them. Use higher grade materials to increase the life of the deck.
4. Landscaping and Curb Appeal – It is said that a good first impression of a home can add five percent to its value. A well-landscaped home adds what real estate agents call curb appeal. Adding new plants and taking care of existing ones can go a long way to creating that curb appeal. Make sure your exterior paint and details are up to par.
5. Adding Living Space – A straightforward addition of a new living room space is typically a very good investment. If you are going to incur these expenses, it’s important to get some bang for your buck. It’s important that the added room is sized so that space can be efficiently produced.
Remodeling Projects To Avoid and That Typically Offer Poor Resale Value
According to Remodeling, “As a general rule, the simpler and lower-cost the project, the bigger its cost-value ratio. Three of the four projects that cost less than $5,000 for a pro to do were ranked in the top five for cost recouped, and the other two were in the $5,000-to-$25,000 price range.” Here are some of the projects you should avoid doing.
Room Conversions – As much as you might want a home office or gym, it’s usually not a great idea to fully convert a bedroom or garage into a room for another use, especially if it involves removing closets and other storage space.
Wall-To-Wall Carpeting – If you’re going to go through the trouble of replacing the flooring in your home, you might as well spring for a hard surface such as wood or tile rather than carpeting.
Kids’ Personalized Spaces – If your kids have a climbing wall, for example, the fantastic addition will probably lead to hours of fun. It will also increase the kid’s strength and perhaps even a sense of accomplishment. But there is no assurance your homebuyer will feel the same way. A rock-climbing wall might actually represent a negative value to a buyer who sees this space as his man cave.
Wine Rooms – Some of the coolest remodels are the least savvy from an investment perspective. A wine room wouldn’t appeal to someone who doesn’t love wine, for example. Original designs rarely appeal to everyone, so when adding spaces to a home you know you will sell, consider how personal it is and if others will feel as strongly as you do.
Built-In Aquarium – Potential buyers may not want the responsibility of caring for an aquarium, and removing it could be costly. A built-in aquarium may initially seem like a fun and entertaining addition, but it can quickly become a drain on time and money, or an eyesore if it’s not properly maintained.
The Bottom Line
As a homeowner, you’re free to make any changes you want. You’re the one who has to live there, after all. So if you plan to stay awhile, don’t shy away from upgrades that make it more comfortable and enjoyable. The enjoyment and functionality you get from a new space may make the project worthwhile. Even if it doesn’t provide good resale value. The decision is yours to make.
Speak with our team of experts today!
Increasing your home’s property value in 2020 effectively has a lot to do with understanding the values of the modern buyer. Here at Dream Home Construction understands the investment value of every dollar you spend. Schedule a free in-home estimate on your next home remodeling project! We specialize in kitchen and bathroom remodel in the greater Seattle area. With 15 years of residential construction experience. Schedule a free in-home estimate on your next home project!