Depending on your situation, the decision to renovate or not can be daunting. However when you're thinking of selling and want to renovate, here are some tips:
1. Don't over-renovate!
Figure out what your home is worth. You don’t need an exact number but a range. This is where a local Realtor, like me can help. If you have a $300,000 house, keep that perspective when you're choosing materials. You won't get as much of a return on your investment if you put a $20,000 bathroom into that $300,000 house.
2. Do your research and set a budget
Look into how much building and finishing materials cost, get some contractors to give you a quote on their work and figure out a budget that you can work with. Once that has been decided, stick with it! There usually are unexpected things that come up in renovating, so allocate a "just in case" portion of your budget for that.
3. Get the permits and guarantees
Home buyers are wary of people who hire their friend's friend or a family member to do the work and are not able to provide permits or any guarantee of their workmanship. If it's a brand new reno and the home owners are paying a premium for it, they want to know that the work was done properly and that they aren't going to have to rip out the work you had done, only to re-do it because something was done incorrectly. If you want someone to pay the premium get the permits and get the guarantee to show them.
4. Stage the new renovation
Now that the house has been renovated and it looks amazing, stage it to showcase what you've done. Minimal distractions, with art to enhance and furniture placed to showcase the flow of the house. This may not be the most practical way of laying out furniture, but the goal is to showcase the home to perspective new buyers.
According to Style at Home Magazine, here are some renovation trends:
- Home theatre
- Hardwood floor in kitchen
- Laundry room on main floor
- Whirlpool bath
- Built-in kitchen appliances
- Office on the ground floor
- Kitchen island
Also, the article gave an outline of the Return on Investment for home renovations:
Kitchen upgrade: 75% to 100%
Bathroom upgrade: 75% to 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%
You can find the article by clicking here.