If you’re planning on putting your home on the market soon and want to increase its value, the key is to pick home improvement, remodeling projects that give you the best return on investment. As a rule, aim for projects that earn back at least 90 percent of your investment but preferably 100 percent or more. These are some of the top recommendations for the best ROI.
Along with bathrooms, kitchens are the most expensive rooms from a structural perspective. When inspectors come to assess your home’s value, they can tell when money is invested and when cheap fixes are used. For the fairest ROI, don’t spend more than 10 percent of your home’s value on a kitchen remodeling project.
One of the biggest mistakes people make is investing in high-end designer wood cabinets. Tearing out and hanging new cabinets is a costly home improvement project. If your cabinets aren’t severely warped or damaged, you can refinish them and install new hardware. Granite countertops add value to a home. Appliances are also important. Ask a real estate agent about which appliances are better for your area. Some brands may raise a value more than others in a certain area. Some less expensive additions that add value are under-cabinet lights and pull-out pantries. Installing recessed lighting is also a good inexpensive way to add value.
When you live in a popular area, like Washington, D.C., a smartly planned bathroom renovation can earn back more than 100 percent of your investment. In today’s fast-paced world, fewer people have time to take baths. Install a glass walk-in shower instead of a prefabricated standard combination unit. Low-flush toilets are also a smart purchase.
Adding a second bathroom may be wise in some cases. If your home has more than two bedrooms and only one bathroom, opt to add an efficient second bathroom instead of renovating the current one. In some cases, it can increase the home’s overall value by five percent or more, which is a better average value than creating an additional bedroom.
Add A Bedroom
In a hot housing market, you may be able to top your investment by adding a bedroom. There are several ways to do this. You can make an attic bedroom or loft. Or, you can put a bedroom in your basement. If your basement and attic need a considerable amount of expensive work such as HVAC and wiring, an addition may only be a cost burden. However, you can turn a finished den or office into a bedroom. The presence of a closet is what distinguishes a regular room from a bedroom. Explore cost-saving options for adding a closet. Bedrooms add more resale value than all-purpose rooms without closets.
Install New Flooring
Although floors collect dirt and germs, they shouldn’t look dingy. If you have old carpeting, cracked tiles, or discolored and warped laminate flooring, upgrading your floor is an excellent investment when it’s time to sell. Hardwood flooring offers the biggest payoff. Check to see if there is existing hardwood flooring exposed or hiding under old carpeting, and consider having the wood refinished and adding a dustless finish to entice more buyers. Stone floors also add value to your home and are a coveted feature among many buyers. If you have a large budget, some exotic flooring options add a considerable amount of value as well.
When you have other areas of the home that need attention and you can’t afford a high-end stone or hardwood floor, consider ceramic tile or engineered hardwood. Both home improvement options are more affordable and add value.
Prioritize Home Improvement
While adding a bathroom or converting a den to a bedroom may be the best investments for some people, others would be better off avoiding such projects to address more serious issues. For buyers and inspectors, updated plumbing, roofing, heating, cooling and wiring are more important than an extra bedroom or a bathroom with a glass shower. If the roof needs to be replaced, make that a priority. Fix any serious problems or structural issues that are lowering your home’s value before you start thinking about remodeling the interior.
The best way to approach a pre-sale renovation is to inspect your home or have it professionally inspected. Make a list of what must be done, such as treating a termite problem or patching a newer but damaged roof. Next, make a list of prioritized home improvement tasks, and decide which ones fit your budget and offers the biggest payout.