There’s no doubt that remodeling can make your home look fresh and updated, but it can also cost a pretty penny. Is it worth the investment? It depends—some remodeling projects increase home value, whereas others do not. Here’s what you need to know before you begin remodeling:
Which Home Improvements Add the Most Value?
If you’re planning on selling in the near future, these are the home improvement projects that you should prioritize:
- Minor Bathroom Remodels
- Minor Kitchen Remodels
- Manufactured Stone Veneer
- Deck Addition
- Loft or Basement Conversions
- Energy Efficient Upgrades
- Front Door Replacement
Minor Bathroom Remodels
Major bathroom remodels will cost far more than they are worth. However, minor bathroom models are smart investments that will help you increase your home’s value.
Focus on upgrading the countertops, painting or replacing the cabinet doors, and installing modern hardware and fixtures.
Minor Kitchen Remodels
Small-scale kitchen remodels can have a major impact on the resale value of your home. Don’t change the layout of the kitchen or incorporate too many design elements to your remodeling plans. Instead, splurge on the main focal points of the kitchen, including the backsplash, countertops, hardware, and fixtures.
Investing in landscaping will not only increase the value of your home, but also make it easier for you to sell. After all, the first thing that buyers see when they pull up to your house is your landscaping.
You don’t have to go overboard with your landscaping plans. Make the most out of your investment by keeping the bushes trimmed, installing new sod, and adding pops of color with bright flowers.
Manufactured Stone Veneer
Does your home have vinyl siding? If so, consider replacing a portion of it with manufactured stone veneer before selling. Add manufactured stone veneer around the entryway or garage to make your home look modern and maximize your profits.
Many buyers want to find a home that is perfect for entertaining guests outdoors. To meet these buyers’ needs, consider building a wooden deck in your backyard. Building a wooden deck is not cheap, but this investment will pay off in the future by increasing the resale value of your home.
Loft or Basement Conversions
If you’re using a loft or basement as storage space, now is the time to convert it to an extra bedroom, kids’ play room, home office, or movie theater. This is your chance to reinvent this space and make your home stand out from the competition. Plus, this project will put more money in your pocket once it’s time to sell!
Energy Efficient Upgrades
Today’s buyers are more eco-conscious than ever before, so they are willing to pay more for homes with energy efficient upgrades.
To cash in on this trend, consider upgrading to energy efficient appliances, adding insulation, and installing energy efficient windows.
Front Door Replacement
Replacing your old and worn out front door with a steel door will instantly increase the value of your home. An eye-catching steel front door will also improve your curb appeal, so more buyers may be drawn to your home.
What Home Improvements Do Not Add Value?
Some home improvements will not add any value to your home. In fact, these home improvements may even decrease your home’s value. Here are the home improvements you should avoid:
- New Carpet Installation
- Swimming Pools
- Garage Additions
These home improvements are not worth the time or money, so cross them off of your to-do list.
How Much Should I Spend On Home Renovations?
It’s important to set a budget prior to beginning renovations. But, how much should you plan on spending? You should not spend more on each room than the value of the room as a percentage of your total home’s value.
For example, the kitchen accounts for about 15% of your home’s total value. If your home is worth $300,000, this means you should not spend more than $45,000 on kitchen renovations. Here’s the breakdown for the main rooms in your home:
- Kitchen: 15% of your house’s value
- Master bathroom: 10% of your house’s value
- Other bathrooms: 5% of your house’s value
- Finished attic or basement: 10-15% of your house’s value
- Other rooms: 1-3% of your house’s value
- Exterior: 2-5% of your house’s value
Use this percentage breakdown as a guide to determine how much to spend on your remodel.
Invest in the Right Renovations to Increase Your Home’s Value
Renovating is about more than simply improving the appearance of your home. The right renovations can also attract more buyers and drastically increase the value of your home. By following these tips, you can increase your profits when you’re ready to sell!