Home Renovations that Return the Most
Anyone who has ever undertaken a home remodel will have to answer this fundamental question: Will I be able to get my money back if I sell my house? There is no one right answer. What a buyer might pay depends on many factors. These include the Home Renovations project chosen, the materials used and the value of the surrounding homes.
However, it is important to get an idea of the value of your investments. You can spend more than what you can expect to recoup as you love your home and plan to stay there for many years. These guidelines will help you avoid unwanted surprises when it comes to putting up the For Sale sign.
What home improvements yield the greatest return?
All remodeling projects are not created equal. You will get the best return on your investment in kitchens, baths and family rooms.
Higher Returns Doesn’t Always Require Spending More
Kermit Baker, director for the Joint Center for Housing Studies’ remodeling futures program, said that people buying a house first look at the kitchen and baths. While these rooms can be more costly to remodel, they are also more likely to make a profit. It’s also a good idea to add rooms like a family or master bedroom. Larger homes tend to fetch higher prices.
Swimming pools, on the other hand, rarely make their investment back. This is because many buyers don’t want to spend extra to buy a home that they feel will be a nuisance. The same reason home offices have a low return is why only a few buyers will desire a space that can be used for work. Consider this: What price would you be willing pay for a convertible top if it was not going to be used?
Kitchen Remodel ROI
But just because a project costs a lot, it doesn’t mean it won’t pay off more. Many minor improvements can bring you major benefits. Remodeling magazine’s annual cost/value analysis found that a kitchen face-lift — such as painting, refinishing and upgrading appliances — is more profitable than a full remodel.
Spending it wisely is the key to spending less. Jim Cory (Remodeling senior editor), oversees the survey. “If $20,000 is spent wisely on a new kitchen, it can look a million times more beautiful.” The design and the product selection are critical.”
Is Remodeling a Good Investment?
Although your remodeling job may seem appealing to most buyers, it doesn’t add value if it is done only to your liking. It’s possible to have a room in your house that is shaped like a cat, mouse or other animal. But can you find someone who will want it? Gopal Ahluwalia (director of research, National Association of Home Builders) says. “You need to keep in mind the fact that some day you will have to sell.”
You can add on to an existing Craftsman house if you want to make it more family-friendly. The ceiling height, style and placement of windows and moldings are all important. Bobbi Chasin (a real estate agent in Evanston Illinois) says, “You don’t wish to lose the integrity the house.” “Putting a big box on top of the house will ruin its entire appearance.”