The thought of home renovation may be a daunting one, but in reality, it can be the best move a homeowner can make. Investing in your home can dramatically increase the value when it’s time to sell. Gutting the kitchen, expanding the master bedroom, or even updating carpet to hardwood, can make your home more appealing to potential buyers. Kitchens and bathrooms are among the top projects that increase the resale value.
Many factors influence the return a finished project will bring. Depending on what is renovated generally 50-75% of the amount invested is recovered upon resale. But, before taking on a renovation be conscious of the house’s value. The return will not always increase due to the amount invested into the home. However, if the renovation makes sense the odds for a higher return are increased.
The same is true for finishes and materials. Splurging on rare imported marble won’t mean the full value will be reimbursed at resale. You will typically get only the base price back unless there happens to be a buyer looking specifically for that item. When deciding on materials and design concepts, be aware of passing trends as this may potentially harm how much a house is worth. To avoid this, consider viewing model homes for inspiration because they are purposely designed with timeless, crowd pleasing looks.
The return cost is also dependent on whether a project is done by a professional or yourself. A rule of thumb: if you’re not a professional, you may want to consider hiring a professional. But, when consulting with a designer or contractor, listen and consider their suggestions.
Updates not only increase a home’s equity, but also possibly save the homeowner money. Improvements such as a new roof or installation can help lower heat and electricity usage and prevent serious damage in the future.
Here are some popular home-improvement trends:
-Hardwood floor in kitchen
-Laundry room on main floor
-Built-in kitchen appliances
-Office on main floor
Percentage recovered on resale:
Kitchen upgrade: 75%-100%
Bathroom upgrade: 75%-100%
Interior painting: 50% to 100%
Roof replacement: 50% to 80%
Replacement of furnace or heating system: 50% to 80%
Expansion (addition of family room): 50% to 75%
Doors and windows: 50% to 75%
Deck: 50% to 75%
Installation of hardwood floor: 50% to 75%
Construction of a garage: 50% to 75%
Fireplace (wood or gas): 50% to 75%
Central air conditioning: 50% to 75%
Finished basement: 50% to 75%
Wood fence: 25% to 50%
Interlocking paving stones on driveway: 25% to 50%
Landscaping: 25% to 50%
Asphalt driveway: 20% to 50%
Pool: 10% to 40%
Skylights: 0% to 25%
Whatever the renovation, remember to get an appraiser to see just how far the investment went.
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