5 Remodels That Add To Your Property Value
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It’s common knowledge that remodeling a property is a good way for homeowners to increase their enjoyment of their home while also improving the value of the house. They think of it as improving the quality of and functionality of the home they’re in on someone else’s dime, as much of the cost can be recouped from an increased sales price. However, not every kind of remodel is going to get you the same value when it’s time to sell the property.
By making sure that you choose the right project to improve your home, not only do you ensure that the buyer covers the majority of the enhancements you’re enjoying, but it can also make the home easier to sell when it comes time for that.
Factors that Add to Renovation Value
There are a number of things to consider when you’re looking at adding to the value of your home with a renovation. Ultimately, these all come down to your return on investment. When you make a renovation, you’re paying upfront for the work yourself, with the hope that this investment cost will pay off down the road.
No matter what renovation you choose, the return on your investment is going to depend on a number of factors you don’t always control, including the characteristics of your local housing market, how the real estate market is doing in general at the time you’re trying to sell, and the quality of the job done by the contractor. However, there are certain renovations that are known to consistently command high returns on investment:
- Wood deck additions average an 85% return on investment
- Siding replacements command an 80% return on investment
- Kitchen remodels average an 80% return on investment when they are minor remodels
- Window replacements average a 75% return on investment
- Bathroom remodels also average a 75% return on investment
It’s important to keep in mind that bigger renovations aren’t always better. When we look at kitchen remodels, for instance, smaller remodels have a better return on investment than larger remodels. There are a number of reasons for this, but the biggest one is that a full expensive interior redesign does not have a significant enough impact on the sales price to make up for its greater expense compared to a simpler remodel. When you’re trying to sell the house, a kitchen that looks nice and new will have the same effect whether it was a total overhaul or spruce-up.
The Big Picture
Knowing what kinds of renovations are most economical means that you can prioritize those projects if you value cost recovery. This is because pouring more money into the house does not mean that the house will necessarily sell for much more than it would otherwise if the project does not significantly enhance the property’s appeal to a buyer. If your primary goal in having a renovation done is creating value for your home when you try to sell it, then you should also consider what kinds of renovations would appeal to prospective buyers. This means that you’ll likely want to pick styles and materials that appeal to a broad range of buyers, generally simpler, more modern looks.
If you’re looking for an experienced home remodeling then look no further than Interior Excellence LLC. Our owner and team leader Miles Albert will personally walk you through all of your renovation options so you can choose the project that brings the most value and useability to your home. Call us at (908) 218-0200 today to get a free estimate on your project. It’s never too late to start exploring new possibilities for your home.