When contemplating resale, homeowners often wonder what renovations will give them more resale bang for the buck. Let’s take a look at what renovations pay off and some that don’t.
Focus on priorities. Although your house is an investment, first and foremost it is your home. Don’t view renovations solely with dollar signs in your eyes. Think in terms of how a renovation will improve your quality of life as you continue to live there. Take return on investment into consideration, but also think of the pleasure the renovation will bring.
What renovations bring the most value? Renovation rarely reap full pay back upon resale. A smart remodel will add value, but usually not equal to the expense of it. You might automatically think of a sleek new kitchen or bath as the things that bring the best value. Although worthwhile, there are some less expensive renovations that make good selling points for later resale.
For example, adding attic insulation. It might be out of sight, out of mind, but pays off in energy savings. So does replacing old, inefficient heating and air equipment. Toss in energy rebates and tax credits by various levels of government and you get a payback on some of your costs right away. Also, telling buyers that the HVAC system is practically new may relieve a fear of theirs. Adding an automated sprinkler system can save on watering bills through efficiency and also ensure a healthier, more appealing landscape. Improving street appeal is a big plus. A handsome new garage door and front door can also do wonders.
Room renovations. What pays off best? Think about what room remodeling project would bring you the most pleasure. Most often, the kitchen is the answer. A tremendous amount of family time and entertaining is spent in the kitchen and adjoining dining areas.
A good kitchen remodel, with updated counters, cabinets and appliances, pays off in quality of life and resale. Again, you probably won’t recoup all of your financial investment, but it will elevate the overall appeal of the home and perhaps be the deciding factor for buyers.
Bathrooms, particularly the master bath, is the next room renovation with the highest payoff. But another interior renovation to consider is the opening up living spaces in older homes that are more compartmentalized. If you watch home remodeling TV shows, you know that knocking out walls can greatly improve a home’s livability. Consult with a reputable contractor to make sure any walls you want to remove aren’t load bearing.
Built-in pools. Pools provide lots of family fun, but not much resale return. The addition of a pool may narrow your market among buyers because of the extra maintenance and expense. Parents with very young children also may be skittish of pools for safety reasons.