There are many reasons people decide to renovate or remodel their home. Whatever your reason is, factoring in your return on investment can help you decide what details you want to include in your project, as well as help you determine what to allow for your project budget. Whether you are planning to sell or not, it is crucial to understand the ROI of different home improvements and which ones can increase the value of your home the most.
Once you realize that investing more money can increase the value of a home significantly, you may decide to invest more into your project than originally planned. Beyond understanding the elements of a home that add the most value, you will also need to understand the neighborhood where your house is. For example, in some affluent areas, buyers may expect certain upgrades and features that are less common in other areas. Consider the following home improvements to add the most value to your current home while planning your home remodeling project.
KITCHENS AND BATHROOMS
It should be no surprise that remodeling kitchens and bathrooms reigns supreme when it comes to ROI. These rooms do happen to be among the most expensive to renovate due to the utilities and plumbing that must be considered in the design. However, because of the amount of time people spend in them, they also have a higher demand and value. Currently, the return on investment in these rooms can be anywhere between 90% to 100% or more.
If it is possible to open up the space in the kitchen, it can drastically improve the functionality and allow more people to gather when hosting and cooking. Some of our favorite kitchen transformations include a statement island, expansive countertops, and lots of unique storage solutions.
Whether you are looking to do a small bathroom project or a complete overhaul, things to consider upgrading in your bathroom include the flooring, vanity, and lighting. Specialty finishes and luxury fixtures can also be a nice touch with instant impact.
When deciding on the best project for you and your home, consider a room addition or conversion. Square footage is the most significant indicator of home value aside from location. Therefore, if you have the funds to add an extra bedroom or bathroom, then you will likely see a return of about 90%-93%. Home offices are currently one of the most popular additions, considering how many more people are working from home. You could also look into adding a deck, patio, or porch addition. If you want something extra special, add an outdoor kitchen, which can be lavish or basic depending on your budget. These options increase the usable space in your yard for visiting and entertaining al fresco, as well as giving you an additional future selling point.
Curb appeal is the first impression people get of your home, referring to the landscaping and overall appearance of the exterior. Clean lines, fresh paint, and well-manicured lawn can go a long way to improving the value of your home. It is also important to realize that well-manicured does not mean it has to be high maintenance. A well thought out design can be minimal and simple. A few obvious ideas might be to look at updating your trim or removing outdated accents. A refreshed garage door, walkway, or even a new mailbox can make an unexpected impact. You don’t have to spend a ton of money on these types of projects, and while true ROI can fluctuate wildly, keep in mind buyers will almost always pay more for a house with great curb appeal.
While not the most exciting home improvement project, general maintenance is something you should not be overlooking. There are a few questions you should ask yourself about the condition of your home before beginning a renovation. How old is your roof, HVAC system, and water heater? If you don’t currently have a multi-zone HVAC system, it is a great way to regulate the temperature throughout your home and has been at the top of buyers’ lists for most wanted technology features. How long has it been since your plumbing and electrical systems were inspected? Are your gutters in need of repair? Are your windows and doorways well sealed? It is always a good idea to make sure that your home is in good working order before moving forward with more expensive or aesthetic renovations.
Energy Efficient UPGRADES
It has become increasingly popular to invest in energy efficient options throughout the home. A brand-new set of windows can improve the look of your home from both the exterior and the interior, as well as reduce your energy bill. Also, going to an electric or tankless hot water system can improve home efficiency and overall home value. Kitchen and laundry appliances have come a long way in energy efficiency with many special features people love. If you add energy-efficient upgrades, then you will likely want to calculate your ROI as monthly savings, as well as implicit return, which measures when your initial investment amount will be offset by your monthly savings.
Home renovations are done for many reasons. If you are looking to invest in your property, then contact Hestia Construct ion & Design for advice on your projects. We can help you determine what will be the best options for your vision and expectations, and add value to your home at the same time.