Home Remodeling that Pays Off & Increases Your ROI
Home remodeling absolutely increases the resale value of any property, but some building improvements seem more important than most people care about. Basic maintenance, including exterior paintings and water lines, is often neglected, causing home sellers to miss better chances of landing higher ROI. That's because homeowners pay more attention to kitchen upgrades rather than checking out old leaks, paint cracks, and broken furnace.
If you have put your existing house up for sale, would interested buyers and real estate agents have cared about good-working furnace and leak-free roof gutters? Of course, the answer is a resounding yes, and even professional designers and property agents would agree. Remodeling experts feel that homeowners are less likely to recoup their investment on major kitchen or bathroom renovation than they are to get back from maintenance repairs. But this doesn't mean that smart fixtures and granite countertops don't pay off that much as kitchen and bathroom remodels remain as two of the best home investments you can do.
A kitchen remodel is the only home improvement that generates higher ROI at resale, returning about 90 percent of the cost. If you intend to remodel your kitchen for resale, it's better to retain the traditional materials including natural wood or stone flooring, wood cabinets, and contemporary lighting fixtures. In addition, windows, doors and roofing replacements recoup about 80 percent at resale. While home improvements can help increase the overall value of your property, not all forms of renovation produce the same impact on how much your home is really worth.
Here are home upgrades that pay off and may increase your property ROI:
1. Floor area expansion
Creating more livable spaces or making your existing rooms look wider could potentially increase your ROI. Real estate agents say that home valuation is often influenced by the amount of "livable" space you make. Investment returns are expected to rise if you add more value to any existing space such as clearing up the basement, enclosing some areas of your patio or converting a storage room into another habitable room. Increasing the square footages can help you recoup your investment by as much as 80 percent for adding another bathroom, an attic bedroom or expanding a family room.
2. Enhancement of energy-efficiency features
Improving the resale value of your home isn't just limited to overall appearance but also depends on the energy-saving features you want to integrate. More home buyers now appreciate the benefits of energy efficiency upgrades primarily due to possible long-term reduction of monthly expenditures. These upgrades include changing the water heater, HVAC systems and old windows with new ones as these changes are likely to provide better ROI for you. Moreover, you can install granite tiles as flooring since they possess better resistant properties against heat absorption and moisture retention.
3. Improving home maintenance
Kitchen and bathroom remodeling may become useless if potential home buyers see pipe leaks in the basement or clogged drains. Homeowners are solely responsible for keeping the entire structure and building utilities in perfect condition before they enlist their home for sale. It's better to take proactive steps in resolving all maintenance issues before engaging on the luxury side like interior renovations. When deciding what building improvements to undertake, consider home maintenance like sidings replacements or roofing repairs as your top priority.
Real estate experts suggest thinking about home remodeling on a buyer's perspective. For some buyers, they may worry about the present condition of the roofing system or water lines instead of being attracted to a newly-renovated bathroom, particularly if the house is more than 15 years old. In general, buyers have limitations on what they can spend on a new house. They're likely to acquire the property and handle the kitchen and bathroom renovation themselves if prospective clients know they won't need to spend on home repairs anymore.
4. Replacement of broken tiles and planks
Replacing all worn-out materials should be included in your checklist when planning for a home remodeling. Cracked tiles, damaged floorboards, and wall stains are expected to occur over time. The good thing is, the market is now flooded with a vast range of material options to help you maximize the value of your hard-earned money. If you're up for a higher ROI, it would be better to choose the appropriate materials that could increase the resale value of your property.
Granite, for instance, is a durable stone you can utilize as flooring, countertop, backsplash or wall finish. Its natural veins easily blend any existing motif, color scheme and accent you may have. Though there are other stone options available, this natural stone makes it an ideal choice to create impressive contrasting effects, providing your home spaces a unique character and atmosphere. If you don't prefer natural stone, laminated wood, engineered quartz, ceramic and vinyl materials can also offer thousands of patterns, styles, and sizes to it exactly what you need.
5. Enhancing the curb appeal
Improving your home exteriors should not be forgotten since you only have one chance to make a first impression when interested buyers show up at your front door. In fact, making changes to your landscaping area doesn't have to cost thousands of dollars. Curb appeal can be done by replacing broken pavers and landscape edges, painting the front door and removing old stuff from your garage. To improve your landscape, consider removing the dead plants, planting seasonal flowers and trimming shrubs as these small efforts can increase your ROI significantly.
6. Renovating the kitchen and bathroom
Kitchen and bathroom remodeling are two of the best investments you can make if you intend to sell your property. The kitchen is the heart of any home, so it's always recommended to focus on the textures and colors when upgrading. An efficient kitchen will make a huge difference between an average and a maximum offer since it is the focal point of every home. The finishing material also plays a significant role in improving the resale value, so consider natural stones like granite or marble for flooring and countertop.
Next to the kitchen, the bathroom also creates a huge impact when planning to sell the property someday. A minor bathroom renovation doesn't have to be expensive. Consider removing the caulk around the toilet and shower, re-grouting tiles or perhaps, replacing the old toilet bowl for a fresher look. Replacing wall cabinets and mirrors will definitely give you a different feel about your bathroom.
If you're considering home improvements in the near future, always remember that what you'll recoup on your investments will depend on the existing home valuation of your house and the community around you.
- Dale Basilla