The Best Renovations for Adding Value to Your Home
By Tim Smith for Modernize.
Before you decide to add more square footage or build your dream kitchen, make sure whatever renovations you’re considering will significantly boost the value of your home first.
Whether you’re selling or staying, try to incorporate projects that offer considerable value in terms of increasing the equity in your home, such as remodeling an unfinished basement or turning an attic into a quiet bedroom.
Every homeowner should question how much money a particular home renovation will add to the overall value of their home. Surprisingly, most of the time the actual answer isn’t as much as it costs them to do the improvement itself. They simply go ahead and do it because it’s what they want on a more personal level. But, some home improvement renovations do in fact add substantially more value than others.
What is the top-ranking all-time home improvement that returns nearly 100 percent ROI? A brand new front door. It returns nearly 97 percent of the original amount spent. However, here are some bigger home renovations you may want to consider in order to get the most bang for your buck.
1. Indoor Systems Revamp
Before you even get started on the cosmetic aspect of upgrading your home, first take a close look at what’s keeping it running. Major home systems like heating, cooling, electrical, and plumbing need to be running properly and efficiently. Home buyers want to be assured that these primary functions in the home are in good working order and won't need immediate replacement once they move in.
2. Attic Remodel
Attics are good candidates for a worthy remodeling project since the primary structure (floor and roof) are already present. Although the roof’s pitch will typically dictate interior sloping walls and limited head space, many people generally like these kinds of unusual characteristics. According to the annual Cost vs. Value Report by Remodeling Magazine, an average attic bedroom remodel generally costs around $49,500 and can return as much as 84 percent of the entire cost, according to the national average.
3. Unfinished Basement
A basement remodel not only returns a high ROI, but it can greatly boost the equity in your home; so, expect a generous payback. Overall, finishing a basement is a sound investment. Currently, the average ROI for a typical basement renovation project is about 77 percent. A professionally finished basement can add diverse function to your home, including more entertaining space, more bedrooms, and more storage as well.
4. Bathroom Upgrade
Although a complete transformation is ideal, it’s not necessary to perform a major bathroom renovation in order to add value to one of the hardest working rooms in the house. Many times, simply upgrading the sink, improving the lighting, installing new fixtures and faucets will give it a high-end feel. No matter how you upgrade, learn about all the different materials and styles available. Most importantly, be sure that once it’s finished, it blends seamlessly with the rest of your home’s style and décor so it looks natural and cohesive.
One key thing to keep in mind as you go through the renovation process is to stick to your budget and not go overboard, which is very tempting for many homeowners. Try not to make any home improvements that won’t directly and significantly raise the value of your home overall.