When you start thinking about renovating, your first step should be to consider whether you are doing it for your own personal comfort or to increase the resale value of your property.
According to the National Association of Realtors (www.realtor.org), when you remodel a bathroom, you may recoup up to 75% of the actual cost of the job. Remember to choose neutral-colored bath tubs, sinks and countertops. Kitchen renovations are another good idea, with a 78% return on the actual amount spent. The kitchen should have new or updated appliances, cabinetry and countertops.
When reselling a home, the floor plan can play an important role in its value. Today's buyers tend to prefer an open layout, with rooms that are easily accessible, and that have plenty of storage space.
Some luxury items, such as swimming pools, may not increase the resale value of a home because these items can be expensive, difficult to maintain or even considered a safety concern,
The National Association of Realtors reports on their website that home improvements related to "curb appeal" offer the most positive return nationally.
The flooring in your home is important, too. Most potential home buyers prefer hardwood floors. If this is not an option, consider replacing worn carpeting or linoleum. Updated lighting fixtures and a fresh paint job throughout the house also can increase a home’s resale value. Other minor cosmetic changes, such as sprucing up your front door or replacing old light switches, may give your home some extra appeal, too.
As a rule of thumb, you should expect to stay in your new home at least five years before selling it if you expect to earn a profit.. In addition, when you plan home renovations, be sure the expected resale value of your home after the improvements are made will not be significantly higher than the other houses in your neighborhood, as this could adversely affect the resale value of your home.