Home Projects That Increase Value Vs. Those That Don't
April 3, 2022
When determining the home projects that are right for you, be sure to consider all benefits. Take a look at some home projects that currently give you the most bang for your buck and ones that simply don’t.
Add Square Footage
There are a number of different ways to add square footage to your home, one of which is expanding for additional bedrooms. The sweet spot is approximately 3-4 bedrooms and 2.5 bathrooms. This allows for enough space for the typical family to each have their own room and bathroom to share. For homes that don’t currently meet this “sweet spot,” it is smart to consider adding on to accommodate this. A lot of homebuyers may consider adding this one already, so they’ll pay more for less future work.
A home office is another great way to add to your existing home and will add value. The number of people who work from home (WFH) is at an all-time high; 44% of companies in the United States employ remote workers. Ensuring your home has space for those who WFH will add significant value to potential buyers.
Lastly, including an in-law suite is another way to increase the value of your home. There are many ways to utilize this space that accompanies all types of buyers: aging family members, recent college graduates, and those who are renting it out for extra income. Keep in mind that in order to be sure your add-ons will add value to your property, it must be done professionally and following departmental codes for your area.
When investing in your outdoor entertainment, you’ll want to consider what benefits you and potential buyers in the future. One easy way to add value is with a little landscaping. Curb appeal is very important and keeping it simple is the best way to go. Make sure grass is well kept and add some flower boxes around the house.
A fire pit is another great way to add a space for your family to enjoy and future families. Something as simple as pavers on the ground and building a pit in the middle can add tremendous value and will get lots of use. This can be a simple project to do yourself and even can be a fun thing to do with family and friends.
Finally, the full outdoor entertainment setup will include an extended backyard patio and outdoor kitchen. These are both ways that will set up your home to host many gatherings such as birthday parties and holidays. For those who don’t host much, these additions are perfect for families to enjoy and for future buyers to come.
Remodel & Update
Two of the most important rooms to consider remodeling when it comes to ROI are the kitchen and bathrooms. Start with a basic kitchen remodel. Kitchens are typically a personal preference room, meaning what you like may not always be right for someone else. Secondly, you may not always get 100% back on the money spent. Keep your kitchen reno simple and trendy to lessen the time your house will spend on the market. Simple updates like a new backsplash, updated appliances, and new hardware on cabinets can be relatively inexpensive and will go a long way.
Next, move on to your bathroom(s). This is one room in the house that has the biggest impact on the selling price when renovating. Go with a sturdy bathroom vanity to set the tone for your bathroom and provide more storage and countertop space. This will be the focal point of your space, so it’s smart to pick it out first and design your space to match. You can also coordinate the vanities in every bathroom of the house to give your home a more cohesive look.
The first thing to avoid when making any type of renovation with the intention to sell your home is customizations. These may seem beneficial to you, but will likely decrease the value of your home or simply not have any return on investment. Instead, make updates that follow the latest trends and design styles while still maintaining an environment that you’ll enjoy for the time being.
Luxury upgrades such as marble tile, are another thing that won’t necessarily add value to your mid-range home. Now if you live in a luxury home/neighborhood, these will definitely be beneficial but adding random things here and there aren’t consistent with the design that buyers will be interested in. Therefore, they won’t add value to the house.
Wallpaper is a tricky one: though it won’t necessarily decrease the value your home is appraised for, it will only appeal to specific design styles of buyers. It can also make your home seem dated if the wallpaper has not been updated in several years. This will expectedly bring in fewer offers at or above the asking price, or overall just lowers the offers in general.
While converting your attached garage into additional living space adds square footage to the home, it may not add value in a buyer's eyes. 92% of buyers want a two- or three-car garage, meaning there’s a small percentage that wants a one-car or no garage at all. This can make it tricky when converting into additional living space for personal use. Yes, added square footage is a benefit, but without a garage, you’re reducing the number of potential buyers dramatically if you plan on not settling down in this home. One addition to the garage that does have a higher ROI can be replacing the garage doors.
Pools can be very controversial; they are a huge investment and have a lot of benefits, but they may not always be the best investment when it comes to selling your home. This is due to the fact that they are very dangerous, especially for families with small children. Under the right conditions, a pool can increase your home value by up to 7%. However, this is oftentimes much less than you invest into it and will deter a lot of buyers.
Lastly, solar panels can be a great way to be sustainable and cut costs month-to-month. However, the initial cost to install is between $11,000 and $15,000 and the value decreases annually by approximately 9%. If you’re looking to sell your home in the near future this may not be the best investment for you due to the extremely low ROI.
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