Not all home remodeling projects are created equal – especially when you’re trying to get the biggest bang for your buck when it comes time to sell your property.
So before you spend thousands of dollars on that home remodeling project you’ve been dreaming about, make sure that you’re armed with the facts first.
Today, I’m going to tell you which of the most common home renovation projects are worth the investment, and which ones you’re better off doing without. The answers may surprise you.
How About Roofs?
A roof replacements recouped 75.9 percent or more at resale.
A recently replaced roof tells buyers that their maintenance costs are going to be low to non-existent for the first few years. And it’s impossible to understate how important that is to buyers.
Kitchens: A Sound Investment or Not?
The consensus is unanimous: Kitchen remodels are an excellent way to spend your home renovation dollars – but only if you don’t spend too much out the gate.
In fact, minor kitchen remodels (in the ballpark of $20,000 or less) returned 83.1 percent of the investment. That number dropped off on bigger remodeling projects in the kitchen.
Some features to focus on in the kitchen include all wood cabinets, commercial-looking appliances, tile or laminate floors and granite or quartz counter tops.
How About Bathrooms?
For instance, a $17,908 bathroom remodel recently recouped 65.7 percent of its cost at resale.
Some features that you may want to focus on during a bathroom remodel include floor-to-ceiling steam showers and walk-in showers.
And if you only have one bathroom in your home, spend your money on adding a second bathroom instead of remodeling the only bathroom you have.
Don’t Forget To Consider Your Home’s Curb Appeal!
People often focus their remodeling dollars on the inside of the home but the exterior is just as important – if not more so.
After all, a potential home buyer will form an opinion about your home before they ever step foot inside.
Perhaps that’s why adding a new steel entry door is such a sound investment when you look at the 98 % return you could get at resale.
Another way to make sure your home has adequate curb appeal is by adding a front porch or architectural features to make your home more inviting.
Give Buyers Extra Room to Grow
Finally, consider adding another room to your home during a remodeling project.
We’ve already talked about the benefits of adding a bathroom. But the same principles hold true for other room additions as well.
In fact, for every 1,000 square feet added to a home, your sales price will increase by more than 30 percent, according a 2005 National Association of Realtors study.
One caveat to this rule: Don’t add so much extra space that your home becomes the most expensive home in the neighborhood. That’s a sure way to turn off home buyers.
Just a Few More General Notes About Home Remodels
Regardless of what type of project you select, remember that the following factors will also help determine your return on investment:
- The Value of Your Home
- The Value of the Homes in Your Neighborhood
- The Housing Market You’re Located In
- How Soon You Sell Your Home After the Home Improvement Project
- The Quality of the Home Improvement Project
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Hopefully you learned something today about home remodeling projects and how much they really benefit you as a prospective home seller.
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Have a great day!