Published February 6, 2020
7 Renovations to Increase Home Value
If you’re planning any home renovations this year, you probably hope that they will improve the value of your home, whether you’re planning to sell or just hoping to build equity in a new home. However, some renovations don’t pay off quite as well as others, and certain renovations can even backfire when it comes time to sell if they are out of line with other homes in the area.
To make the most out of your renovation project, take a look at our suggested renovations that are sure to increase your home’s value.
1. Improve Curb Appeal
The front exterior of your home will always be a buyers first impression both in person and online, so it’s vital that you keep your home’s exterior in tip-top shape. Install a new garage door to give your home a modern face-lift, and ensure that all exterior paint is fresh and chip-free, including the front door and the shutters. If there are any cracks in the driveway, reseal your driveway to give the best impression. And, of course, keep your grass nicely maintained and all landscaping up-to date. In the summer, add in some flower beds to give an extra pop of color.
2. Kitchen
Once you’ve ensured that your home’s curb appeal is immaculate, your kitchen is the next step. An outdated or dingy kitchen will quickly lose a buyer’s interest, however, it’s important to consider the cost of your materials before updating. A high-end kitchen remodel can cost upwards of $30,000, and, depending on your neighborhood, you won’t be able to get that money back when it’s time to sell. According to Remodeling magazine’s Cost vs. Value Report, a modest kitchen renovation recoups on average 81% of its cost in added value, whereas an upscale kitchen remodel might only recoup 53% on average. So, unless you’re dying for the look of marble counters and gourmet appliances, it’s best to keep materials, and costs, on the lower end of the spectrum.
If you don’t have a huge budget, a little bit of paint in your kitchen can go a long way. Consider painting your cabinets a fresh new color and installing modern hardware. You’d be amazed the difference it could make!
3. Update or Add Bathrooms
Like an outdated kitchen, a dingy, 70’s era bathroom will quickly turn buyers away. While a high-end remodel can cost more than $20,000, you can easily refresh a bathroom with new paint or wallpaper, a countertop seal, and some modern hardware. Before you break the bank on a luxurious renovation, look at homes in your neighborhood that have recently sold to see the condition of their bathrooms. If other homes have sold for a good price with an elegant en-suite, it’s probably safe to install the same in your home. If you see laminate counters and vinyl floors, stick to the lower end of the pricing spectrum. Just like kitchens, high-end renovations do not typically recoup their costs, so be cautious with your materials and budget.
Bathroom count also significantly increases a home’s overall value. If you have a space in your basement for an additional bathroom, add one in! Again, there is no need to splurge on high-end materials. A simple vanity and shower stall will recoup their costs easily.
4. Energy Efficient Features
Adding in efficient features is a great way to increase your home’s value while also reducing expenses, especially if you live in an area with extreme temperatures. If you need new windows, consider installing double pane windows. If you’ve noticed any drafts, consider installing new insulation. Other options include high efficiency appliances, furnaces, water heaters, or even solar panels.
5. Increase Square Footage
Square footage has a significant impact on a home’s value, both for buyers and appraisers. If you have an unfinished basement or attic, you can easily finish it to provide additional living space, and additional value to your home. Or, if you have a bigger budget, adding on a sunroom or even an in-law suite has been shown to increase the overall value of your home.
6. Add in Smart Features
While replacing the roof or redoing a bathroom can cost you tens of thousands of dollars, installing smart home features is a quick and low cost way to increase your home’s appeal. Consider a smart home security system, thermostat, smart locks or smart lights that could be controlled with an app. These features can usually be installed for around $1,000 and are in high demand.
7. Basic Updates
While you may not notice these small improvements as much as a new kitchen or bathroom, they are just as important in maintaining your home and preserving its value. Consider updating the electric panel, repairing or replacing the roof if needed, replacing the plumbing, and keeping paint fresh and neutral throughout. These small updates will go a long way in proving the value of your home.
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