TV shows about real estate routinely use a mix of professional remodeling projects and do-it-yourself ventures to transform dark, neglected rooms into gorgeous, inviting spaces. There’s no doubt that renovating is a great way to put your own stamp on your space and customize it to suit your family’s needs, but not every home improvement project improves your property’s value. In fact, some renovations can have a negative impact, so you’ll want to consider your remodeling plans carefully. What renovations add value to a home?
The Do’s and Don’ts of Home Renovations
When you’re focused on creating your dream home, it’s easy to let concerns about property values slide. In reality, no one knows what the future holds, so even if you plan to remain in your home for a long time, it’s smart to think about how any renovations might affect your home’s value. As Forbes points out, there are certain things savvy homeowners don’t do when renovating:
- Don’t customize too much. Custom fixtures and features can make it hard for buyers to see themselves in the space, so you should use them sparingly. Instead, personalize your space through decor.
- Don’t outshine the neighborhood. Because surrounding properties impact a home’s value, you don’t want your renovations to make your home the most expensive property on the block. Opt for improvements that, while lovely, will keep your home on par with neighboring houses.
- Don’t overspend. Luxury is appealing, but buyers also appreciate value. Spending too much on extravagant details that are likely to go unnoticed makes it hard to recoup your investment.
- Don’t eliminate rooms. It may seem smart to combine two small rooms into one larger room that offers a more comfortable living space. However, in the age of internet shopping, filtering is a cinch. As a result, reducing a four-bedroom home to a three-bedroom one could mean that many prospective buyers will never see your property. Think carefully before you eliminate a room.
What Renovations Add Value to a Home?
According to iPropertyManagement, Americans spent more than $350 billion on home improvement and renovations in 2018. So what renovations add value to a home? Which projects are likely to bring a satisfying return on your investment?
Many buyers keep efficiency in mind when shopping for a new home, so having new, energy-efficient windows can be a great selling point. In fact, MoneyCrashers reports that you could see a return of up to 90 percent on your investment. In addition, going green might help you secure tax credits or credits from your state or utility company. It will also save you money on your monthly energy bill. In fact, installing Energy Star-rated windows can reduce your home’s energy costs by up to $500 a year!
Minor Kitchen Remodel
Making a few simple changes to update and brighten your kitchen can pay off big time, with increased functionality and comfort and a sizable return on your investment. According to Family Handyman, homeowners who complete a sensible, modest kitchen remodel are likely to recoup up to 89 percent of their costs in increased property value.
Adding on to a home can be costly. Finding and repurposing existing space is a smart alternative, and basement remodels are a fantastic example of this trend. Turning an ignored, subterranean storage area into an attractive living space adds instant appeal and real value to your property. Investopedia reports that homeowners can recover between 65 and 75 percent of their investment through this type of renovation.
Entry Door Upgrade
What if your renovation budget is extremely tight? Money suggests replacing your old, tired entry door with a new steel one. You’ll improve your home’s appearance, boost its curb appeal, and make it more efficient. Plus, you’ll recover 91 percent of the cost of this affordable improvement.
At PrimeLending of Kansas City, we take great pleasure in helping our clients reach their housing goals. Whether you’re interested in buying a new home, looking for a way to fund the purchase and renovation of a fixer-upper, or eager to refinance your existing home to secure funds for remodeling, we’re ready to help. Contact us today to get started.