4 Different Categories of Home Renovation: Which Ones Boost Value? | Insights from the Pros
If you're planning on selling your home soon, it's important to choose a renovation that will boost its value. Some types of renovation are more expensive than others, but they can make a big difference when it comes time to sell. Be sure to speak with a professional before you begin any type of renovation, so that you can be sure that you're making the best decision for your home.
Prior to listing their homes for sale, homeowners frequently carry out significant remodeling projects to improve their homes. After all, remodeling always drives up the sale price. Unfortunately, no. Repairs frequently don't generate enough revenue to cover their costs. Learn how to carefully renovate and which tasks will add the most value to your home by reading on.
4 Types of Renovations
Type #1 Kitchen renovation is a great way to add value to your home. Not only will it make your home more comfortable and functional, but it will also increase its resale value. This type of renovation is perfect for families who are looking to improve their quality of life, as well as those who are hoping to sell their home in the near future.
Type #2 Bathroom renovation is another great way to add value to your home. This type of renovation can be a bit more expensive than some of the others, but it will definitely pay off in the end. If you're planning on selling your home soon, this is a great way to increase its value.
Type #3 Energy-efficient renovation is a great way to improve your home's energy efficiency. Not only will this make your home more comfortable, but it will also save you money on your energy bills. This is a great option for families who are looking to reduce their carbon footprint, as well as those who want to save money on their energy bills.
Type #4 Cosmetic renovation is a great way to improve the look of your home. This type of renovation can be a bit more expensive than some of the others, but it will definitely pay off in the end. If you're planning on selling your home soon, this is a great way to increase its value.
These are just a few of the many types of home renovation that can boost your home's value. Be sure to speak with a professional before you begin any type of renovation, so that you can be sure that you're making the best decision for your home.
Owners Vs. Investors
The strategies adopted by owners and investors to home renovations varied significantly.
If done properly, updating an investment property is a wise plan. When they invest in run-down homes at low prices, successful fix-it-and-flip experts know that a little sweat equity goes a long way toward making a real estate investment profitable thus they save costs by completing the majority of the repairs themselves.
The remodeling projects chosen by this type of investor are those that will produce the greatest value with the least amount of work and expense. To prevent over-improving the property, the first step in this process is to evaluate the surrounding residences. For instance, adding crown molding and high-end worktops to a fix-it-and-flip project is unlikely to result in a noticeably higher selling price if none of the comparable homes have similar features.
Owners, on the other hand, frequently approach home maintenance in a less deliberate manner. As a result, they may end up investing much more money in a project than they would ultimately recover from selling it. While making a few upgrades is unquestionably a prudent choice, going overboard in the hope of a profit upon resale is not.
How do you tell which updates are hassle- and cost-worth while avoiding others? Understanding the typical return on investment from four categories of restoration projects—the fundamentals, curb appeal, greatest value, and passion projects—pays off in order to maximize your remodeling budget.
There are four different categories of renovation work: the basics, curb appeal, best value for money, and passion projects. They don't all offer a great return on investment.
The basics include solid floors, a leak-free roof, working gutters and downspouts, a dry basement, a dependable furnace, and walls and retaining walls that are in good condition.
A well-kept grass, inexpensive landscaping, new exterior and interior paint, spotless carpets, and new address numbers are examples of curb appeal characteristics.
The amenities with the greatest value are new siding, updated kitchens, and new windows.
Swimming pools, tennis courts, hot tubs, wine cellars, and game rooms are examples of passion projects.
1.What Is Basic
Every buyer anticipates the fundamentals when they buy a house. This includes having a water-tight roof, working gutters and downspouts, a dry basement, a dependable furnace, sturdy floors, well maintained walls, functional retaining walls, and working plumbing and HVAC systems. Even first-time buyers have a checklist that includes all of these conveniences when looking to purchase a property. The fundamentals in affluent homes may also include a specific number of bedrooms, baths, multiple-car garages, and any other features typical of the area.
You are not required to upgrade everything as a result. You can concentrate on routine upkeep and minor, less expensive upgrades that keep everything in working order. Simply bringing the property up to the standards of the other homes in the neighborhood will ensure that you can seek a comparable price. Adding the necessities to a home that lacks them won't enhance value.
However, while you may want your home to stand out from the competition, you shouldn't make improvements that significantly go beyond what is considered normal in the area. You'll not only lose money in the end, but you can also frighten off potential purchasers. In other words, take into account what the rival residences in your neighborhood have to offer before you spend a fortune on an extensive makeover effort. Discover how similarly priced properties in your community compare, then make adjustments in light of your particular market.
2. Curb Appeal
The house looks excellent as soon as potential buyers arrive thanks to curb appeal projects. These improvements won't likely add much in the way of financial worth, but they will hasten the sale of your property, and you can handle most of the work yourself to save money and time.
Never undervalue the importance of making a good first impression, whether it be with well-kept grass, inexpensive landscaping, new exterior fixtures, clean carpets, and fresh paint inside and out (at least on the front door) (e.g., address numbers). Lighting is another crucial element, both inside and outside, but if you go overboard, it could break the bank or overload your electrical system. While you want the house to look open and welcoming, think about adding some basic lighting for a contemporary improvement.
But err on the side of being boring. Bold design decisions should not be incorporated into the décor at this time. Choose delicate, elegant designs that will resonate with a larger audience. You can speak with an interior decorator if you need assistance with these undertakings. Just make sure you tend to choose less expensive options.
3. Best Value for Your Money
The fix-it-and-flip experts' favorite projects are those that will add the most value at resale; a homeowner should place them high on their list as well. Even if these improvements won't cover all of their expenses, some of them will.
The National Association of Realtors (NAR) lists new or refinished wood flooring, updated bathrooms, basement or attic conversions, and kitchen renovations (new countertops and cutting-edge appliances) as some of the projects with some of the highest returns on investment, frequently recouping 80% or more of their cost at resale. A lot of exterior improvements, such as new roofs, siding, doors, windows, restored decks, and energy improvements, are also very profitable when sold.
4. Passion Projects
Without regard to expense, homeowners invest in passion projects, which can range from hot tubs and tennis courts to swimming pools, wine cellars, game rooms, and even ponds. However amazing these features may be, installing them costs a lot of money, and most potential buyers (who don't share your interest) are unlikely to pay more for your home in order to acquire the tennis court.
For instance, a pool rarely raises the value of a house. In-ground pools not only cost a small fortune to install, but many home buyers also see them as high maintenance hassles and year-round safety hazards—not to mention that they are only usable for a few months of the year in most regions.
While there is no harm in including these conveniences in your home, don't anticipate that purchasers will be willing to pay more for them when you decide to put it on the market. And take caution if replacing a standard item is part of the renovation. You might want to reconsider turning your garage into a game room if every other house in your neighborhood has two cars. Do you really want to be the only home in the neighborhood without a secure parking space?
Which Home Renovations Will Increase the Value the Most?
Full kitchen renovations, wood flooring, updated bathrooms, as well as roofing, siding, doors, windows, and energy upgrades, are just a few examples of home improvements that offer a significant return on investment, frequently recovering 80% or more of their cost at resale.
How Can I Make My Home Look Better From the Outside?
A well-kept lawn, inexpensive landscaping, new paint (at least on the front door), and new address numbers are all features that raise the curb appeal of your home to every potential buyer who approaches it.
Why Would a Pool Not Increase the Value of My Home?
Recouping the expense of a swimming pool is rare. They not only cost a fortune to install, but many potential home buyers view them as a safety hazard and a high-maintenance nightmare.
Keep in mind that your primary residence is more than simply a house—it's your home—no matter what project you're thinking about. Add the amenities you want, regardless of their effect on resale, if you want to stay there for a long time. When it's time to sell, take care of the essentials to bring the house up to community standards and add some curb appeal, but don't bother with multiple significant repairs just to raise the asking price.
You might be more interested in elaborate custom upgrades than prospective buyers are. It's ideal to undertake modest, decor-neutral house improvements that increase functionality. And keep in mind that even with repairs to real estate that are known to increase value, there is a good risk you will spend more money than you will recover from a sale.
What do you think? What type of renovation do you think is the best way to boost your home's value? Let us know in the comments below
JACOBS & CO. REAL ESTATE, LLC.
12923 Fitzwater Dr. Nokesville, VA 20155
(703) 594-3800 | jacobsandco.com