The question of whether or not a renovation project will increase your home's resale value is paramount. Renovations can be a smart investment because they often raise the home's resale value and boost its desirability to potential buyers.
However, not all improvements are the same because some renovation jobs may not increase the value of your home as much as you had hoped.
It's essential to consider the cost of the renovation, the quality of materials used, and other factors when determining how much value a renovation will add. With careful planning and research, you can ensure that your home renovation adds maximum value.
This article will discuss the factors that can affect how much value a home renovation adds, as well as tips for getting the most out of your renovation.
Well-planned improvements can significantly increase a home's value. So whether you're looking to increase the resale value of your property or just make it more comfortable and enjoyable for yourself, many different types of renovations can help you achieve your goals.
This improvement can be as simple as cosmetic changes, like painting and new flooring, or more complex projects, like adding an extra room and remodeling the kitchen. There are a plethora of ways to increase your home's value by making improvements to it.
But is it worth it to add a small library? Or should you focus on your kitchen? Find out which renovation aspects add more value to your property.
When determining how much value a home renovation will add, the factors to consider start with the cost.
The cost of the renovation plays an important part. However, the key thing to remember is that more expensive projects may not necessarily add more value than cheaper ones.
But if you focus your budget on using a higher quality of materials and raising the level of craftsmanship, you may add value. These two factors greatly impact your home's value after renovation.
Finally, the location of your home and the current market conditions can also play a role in determining how much value a renovation will add.
Some of the most common types of home renovations that bring added value to your property are:
Remodeling the kitchen is a common way to increase the value of your home. Studies show that a kitchen remodel can raise your home's market value by as much as 10 percent.
Kitchen renovations can range from minor cosmetic changes, such as new countertops and cabinets, to more complex projects, like a complete remodel.
Typically you will get an ROI of about 50% on a kitchen renovation, although you can get more with the right renovations.
When planning a kitchen renovation, it is important to consider the quality of materials used, as well as the cost of labor. Additionally, ensuring that the design is modern and attractive will help you get the most out of your renovation.
Bathroom renovations are another popular home improvement project that can add significant value to your property.
As bathrooms are one of the most important rooms in a house, a well-designed bathroom can significantly affect resale value.
A bathroom renovation can add as much as 8.4% to your home's overall value, depending on where you live.
And again, bathroom renovations can be something minor, like replacing existing features, or you can go all out and add a bathtub with some stylish lighting to add even more value.
Improving the appearance outside of the house can raise its appeal and resale value. Your house's exterior is the first thing potential buyers see when looking for property, so making a good first impression matters.
Exterior renovations can range from minor cosmetic changes, such as painting or landscaping, to more complex projects, such as adding a deck or patio.
So when planning an exterior renovation, consider the cost of materials and labor. Also, remember to account for the climate in your area, as the wind, rain, or snow may affect your renovation.
Furthermore, some exterior renovations add more value than others. For example, adding a patio to your garden will usually get you an ROI of about 62%, whereas investing in a new stone veneering could offer a 91% ROI.
Interior design upgrades are another great way to add value to your home. They will make your home's interior more visually attractive to potential buyers and more comfortable and enjoyable for you and your family.
Interior design upgrades start from simple projects, like painting or wallpapering, and may extend to more complex projects. These complex ones may be installing new flooring or adding built-in storage.
Adding a master suite is one of the best interior design upgrades when it comes to typical ROI. You can expect anything from 60% to 80% return on your investment.
It's easy to get carried away with renovation projects, so you've got to think about the money. As mentioned, the renovation costs matter. And it means accounting for everything, including labor and materials.
Any other expenses, such as those for permits or contractors, should also be accounted for.
Identifying the local prices of building supplies and labor will help you financially keep your renovation on track.
Ensuring the design is up to date and visually appealing is another important step in maximizing the benefits of your makeover.
Materials and labor make up the majority of the expenses of your renovation project.
The costliest components and labor force for your remodel will change based on the specifics of your project.
For example, if you are renovating your kitchen, you may find that cabinets, countertops, and appliances are some of the most expensive items. Cabinets can cost anything from a few hundred to a few thousand dollars, depending on features, wood type, and finish.
Countertops can also be costly, with granite or quartz among the priciest options. Appliances such as refrigerators and ovens can also be expensive, with high-end models costing thousands of dollars.
In terms of labor costs, hiring a contractor or professional tradesperson can be one of the most expensive aspects of any home renovation project. Contractors typically charge an hourly rate for their services which can quickly add up depending on how long it takes them to complete the job.
Additionally, some contractors may charge additional fees for materials or supplies they need to purchase to complete your project.
Quality materials and professional labor can help ensure that your renovation project is successful and adds value to your home.
Unexpected expenses can include additional costs such as permits or contractor fees. Moreover, unforeseen problems may arise during the renovation process that could add to the project's overall cost.
Also, be sure to put some money away for unexpected costs. This might be useful for offsetting any unforeseen expenses that may crop up throughout the refurbishment.
For example, if you are renovating an older home, hidden structural issues may need to be addressed before work can begin. Setting aside some money for these issues can help ensure you don't go over budget on your renovation project.
Finally, it is important to remember that renovations often take longer than expected and require more materials than originally planned.
By taking these steps, you can help ensure that your home renovation project stays within budget and adds value to your property.
How can you bring in as much added value as possible to your home by improving it?
Follow these five tips to maximize the value added to your property through home renovations.
Researching your home's market value before starting any project is important. This research will help determine its original value before your renovation project and how much will be added after the renovation.
In addition, researching the market value of your home helps you set realistic expectations for the amount of money you can expect to recoup from your renovations.
It's also a good idea to research comparable homes in your area to understand the current market value of similar properties. All of this will determine how much money you must spend on the project's costs.
Quality materials and professional labor are key to ensuring that your project adds value to your property.
For example, high-quality materials will ensure that your renovation is durable and will last for years.
Furthermore, investing in skilled labor is another great approach to ensure that your home improvements are carried out correctly and in a timely manner.
Improving your home's curb appeal can make it easier to sell it in the future and fetch a higher price. Why? Concentrating on the property's curb appeal can entice people who see it to be interested in buying it.
Curb appeal includes:
Investing in energy-efficient upgrades will definitely raise the value of your home. It also has the added benefit of reducing your monthly utility bills. These upgrades can include installing energy-efficient windows, upgrading insulation, or adding solar panels to your roof.
Another great way of adding value and saving money is by installing a heat pump. Heat pumps are attractive as they are energy efficient, effective, and very affordable to run.
The only problem is the high costs associated with the initial installation.
But these upgrades will make your home more attractive to potential buyers and save money in the long run.
It may sound daunting and a lot of hard work, but adding a room or an extension to your home can be a great way to add value to your property.
An extension in your house can be an extra bedroom, a bathroom, a basement, or a sunroom.
These additions increase the square footage of your home, which will automatically raise its resale value, as real estate agents often price a house per square foot.
But, overall, there is no universally accepted response when it comes to the question of how much a house renovation would increase its value.
However, by following these tips and researching the market value of your home before starting any project, you can help ensure that your renovation adds value to your property.
Home improvements are a fantastic option for increasing your house's worth. Researching the market value of your home before starting any project is essential to determine how much value your renovation project can add.
In addition, investing in quality materials and professional labor, focusing on curb appeal, and investing in energy-efficient upgrades are all important factors in raising the value of your home.
Finally, consider adding a room or an extension, as this can help increase the square footage of your home and make the house feel more spacious. This way, you can also add usable space when increasing the square footage.
Since the journey of adding value to your home through renovations start with financing, Housetable is here to help. We offer competitive home equity loans to help you finance your project and make it a reality.
Contact us today to learn more about how we can help you turn your house into your dream home.