What Improvements Increase the Value of Your Home?
Approximately 6 in 10 Americans will “probably” or “definitely” improve or renovate their homes over the next year, Chubb Survey shows. 65% of them plan to spend a minimum of $10,000, with 20% planning to spend between $10,000 to $40,000, and 15% with budgets that exceed $ 40,000.
A home improvement project can be an excellent way to give your home a facelift, increase value, create more space, and save some dollars on energy consumption. But do all remodeling projects increase the value of your property? There may come a time when you will need to list your home for sale. As you prepare for such possibilities, know that not all renovations will bring the desired return on investment. While some will increase your home’s value, others may even make it harder to sell it. Here are the most common things you can do to increase the value of your home.
Add siding or a fresh veneer
A 2020 Cost vs. Value Report shows that a cement-fiber siding (made up of cellulose fibers, cement, and sand) can recoup 78% of your initial investment. Aluminum tends to fade and dent easily, and vinyl is easy to crack, warp, and split. However, cement-fiber siding tends to hold up flawlessly against the elements. Moreover, it is naturally resistant to termites, rotting, and fire.
If the masonry look is your preference, you can add a coat of manufactured stone veneer. While it may cost you about $10,000 or more, it can bring up to 96% ROI (return on investment).
Remodel the kitchen, but don’t overdo it
A deluxe high-end kitchen can be an excellent feature to appeal to a professional chef or a billionaire home buyer. However, an average house buyer won’t mind a simple commercial-grade gas stove with several burners and a well-functioning vent. Most people are looking for decent but straightforward things: good quality kitchen appliances, a nice layout, and modern cabinet finishes.
According to a 2018 Cost vs. Value Report, minor kitchen renovations generally recoup about 81% of the costs, while massive overhauls only recoup 53.5% of the expense upon resale.
Minor kitchen remodeling areas to consider include:
- replacing the sink
- replacing faucets
- installing energy-efficient appliances
- upgrading the cabinet faces
- installing new countertops
Before you renovate your kitchen, consider your budget, unexpected cost, effect on the value of your home, and the local market. Incomplete or unprofessional renovations are a big NO, don’t do it; it would be much better to “sell house as-is.”
Finish your basement
A study by NAHB shows that homebuyers earning at least $150,000 per year (high-income clients) in the Pacific Northwest, Middle Atlantic, and Northeast states particularly love basements. In fact, 73% of Millennials would love a home with a basement. While it may not be a cheap undertaking, a basement is among the renovations that bring a high return on investment. However, make sure the work is done professionally, including proper insulation and ensuring necessary permits are obtained.
It can cost you between $50 to $90 to renovate a square foot of your basement. However, you can get a 75% return on investment on the renovation.
Make your home more energy efficient
Energy-saving features have huge impacts on property value (especially in regions experiencing extreme cold or heat), including lowering energy costs. Consider LED lighting, double-paned windows, energy-efficient appliances, and enhanced attic insulation to appeal to an energy-conscious home buyer and increase your property value.
If you’re looking to boost the home value over the long term (not hoping for a fast boost), you might consider installing solar panels on the roof. A buyer may be reluctant to install them but will love to own a house with already installed solar panels.
Tip: Let a local utility company or energy auditor assess your home to determine which energy renovations will be more efficient and cost-effective. You might be able to do some of them yourself, which is an avenue for saving some dollars.
If your property’s roof is curled or shingles are bucking, a roof replacement can work to boost its value. When replacing a roof, bear in mind that most buyers prefer roofing systems with decent warranties; so choose wisely. According to NAR, a roof replacement typically recovers 107% of its cost at resale.
Replace Flooring (Consider hardwood flooring)
A 2017 study by the NAHB (National Association of Home Builders) established that 87% of purchasers in the $100,000- $149,999 price range are looking for hardwood flooring.
However, replacing your flooring is a more expensive project than swapping some simple appliances or decluttering. You should consider floor replacement only if:
- you have the financial resources
- the existing flooring is outdated or cannot be restored
- you have done a market analysis and determined that you’ll recoup your investment.
A floor replacement brings a high return on investment, especially if the current floors are outdated, cracked, or worn out.
Break out the paint
Painting is a cheap and fast way to make your home more appealing to potential buyers. While a new coat of paint can make your property appear new, never select wild colors—use neutral shades. Neutral colors appeal to a large audience of potential buyers. Generally, homebuyers don’t see any value in using the most expensive colors. Stay away from excessively unique improvements or custom colors.
Things that may not add value to your home
While there are many things you can do to increase the value of your home, others may not add any extra money to your pocket. Here are some of them.
While you might love a home with a swimming pool, it is a costly project with one of the most negligible returns on investment. A swimming pool can cost you between $25,000 and $100,000, or even more, plus the annual maintenance expense that generally ranges between $500 to $4,000, depending on where you live and the type of pool.
While a pool may add some value to your house, it’s often better to opt for a “sell home as-is” option if a pool is the only thing you think you need to add to your property. The return on investment is often meager so you would be financially wise to buy a house that already has a swimming pool!
Extensive Landscaping Features
While you may see the need to add an amusement park to your patio, it may fail to attract the enormous cash you hope for upon resale. Thus, if you choose to install a beautiful waterfall in the backyard, do so for your enjoyment, not to improve the resale value of your property.
Landscaping and gardening choices are individual preferences. Moreover, a buyer might see only the costs they’ll have to incur to keep your beautiful yard adequately maintained.
A garage can provide many possibilities. You may choose to convert it into a living space, a gym, or a home office. However, most people own cars and are looking for a home with a garage for their cars and storing their other items.
Most garage conversions are big blunders, especially in an area with icy weather. When a homebuyer imagines having to scoop the snow off their vehicle’s windshields daily, you will forgive them for not buying your home.
Get Multiple Bids
Getting multiple bids will allow you to interview many prospective construction contractors, obtain their professional advice, and truly understand the actual cost. Present your plans, ask for recommendations, and if there is a better way to achieve what you want.
Your goal is to hire a highly qualified contractor for the best price, with an emphasis on highly qualified. Then make sure everything is put in writing.
The Bottom Line
As you consider things you can do to increase the value of your home, your options for home renovations that add value are unlimited. However, most of today’s home remodel projects don’t bring a high return on investment as they did in the past. If you must renovate, focus on smaller projects that appeal to a quick home buyer. These buyers are often budget-minded.
Sell Home As-Is to OutFactors!
If you want to avoid the costs and hassle of renovating your home before listing it for sale, a “buy my house as-is” company such as OutFactors can give you a significantly appealing cash offer. To get a cash offer on your home you just enter your address and answer a few simple questions about the house. The entire process only takes about 2 minutes and personal information is NOT required. Yes, that is correct! No email address, no telephone number, not even your name. If you like the offer, great, your home is sold. If not, just “X” out and go enjoy the rest of your day. To get a great cash offer click here!
For those who prefer a personal touch, we invite you to call us at 800-420-7030 to speak with our friendly and helpful customer advocates. We are here to help!
539 West Commerce Street
Dallas, Texas 75208
Improvements Increase Home Value | Improve Home | OutFactors – Dallas Fort Worth, Texas