When selling a home and talking with an agent about what the property’s price can be listed as, a lot of things are taken into consideration. Many people set out to increase the value of their home by renovating certain parts of it, but what will really add value in the end to your home so you can list it as a higher price?
Here are 10 home renovations that will help increase the value of your home
1. Create curb appeal
The first thing buyers will see when they arrive at your home will be its exterior and landscape. Repainting the exterior is one way to go to give your home a fresh, new face. Making sure the lawn is manicured and well-maintained is another key point, along with a fully functional sprinkler system. Many people may also add small cobbled paths that lead to the front door, or even working fountains out front.
2. Update major systems in home
Cosmetic features of a home are important, but what is going on beneath the surface is even more crucial when deciding to purchasing a home. A home must be functional as well as fabulous looking.
Hiring an inspector to make sure all the major systems—plumbing, heating, electrical and sewer—are up-to-par will be worth the time and money. Homebuyers want to make sure that they aren’t going to need to replace an air conditioning unit or bathroom pipes when deciding if the home is sound and stable.
3. Bathroom renovations and additions
The 2014 Cost vs. Value Report done by Remodeling Magazine reported that a bathroom addition yields a 60% return. In 2011, bathrooms became more important to buyers than the kitchens. Adding even a half bathroom adds value to your home explained experts from the National Association of Home Builders.
While prices vary depending on the region of the United States where the home is located, a half bathroom may add up to 11% to a home’s value, and adding features to that bathroom will just increase that even more.
4. Small home fixes
They say it’s the little things that count, and this still applies when homebuyers are looking into purchasing a home. According to Realestate.com, fixing small things like the alarm systems, water filtration systems and adding luxury expenses can attract the buyer’s eye. The buyer might love the home, and the added spa jets in the bathtubs might be the thing that convinces them to purchase the home.
5. Attic remodeling
Remodeling Magazine said that the No. 1 home improvement project, when ranking them according to return on investment, is the addition of a bedroom in the attic. It costs just more than $50,000, but returns at least 73% of the cost of the addition—84% in some places in the United States. Other attic improvements like installing insulation or replacing it will also add value to a home owner’s attic without completely having to remodel the space.
6. Outdoor replacement projects
This will also boost your curb appeal also, but these are projects that add to the functionality of the house’s exterior. Remodeling Magazine says to consider replacing garage doors, windows and sprinklers. Even replacing the siding of the house siding can make it look more appealing, especially when an interested buyer first pulls up. The return on investment for most outdoor replacement projects—72%. Replacing the garage door itself is a 84% return on investment.
7. New entranceway
Don’t underestimate the power of a front door. People make up their minds in the first seven seconds of entering a house. This is one of the things mortgage brokers first notice when estimating the value of a home. They like a working door bell and lights on the front porch. Anything from painting the entranceway or door to a completely new frame, the return on investment for replacing or refurbishing your doorway is 96.6% according to Remodeling Magazine. (That’s huge!)
Square footage is a key aspect in determining what home you would like to purchase, along with what is covering all that square footage. One of the biggest home renovations, and easiest that will guarantee a return, is replacing carpeted or linoleum flooring with wood. Wood costs more to put into bedrooms, but is easier to maintain for homeowners. Retiling bathrooms and kitchens can also increase the value of your home; with different sizes and material, this can fluctuate the margin of returned investment on redone floors.
9. Appliance upgrades
Everyone loves new gadgets and technology, and that also applies to people that are looking to purchase a home. Most homebuyers are willing to pay a bit more for a kitchen that comes with a new refrigerator or a washer and dryer. While no matter the property, most homes have washer/dryer hookups, but it is more appealing when the products are already included in the sale—and when the products are purchased within the last two years. Another thing that is attractive to a buyer’s eye: appliances in the same room that are all the same color. Remodeling Magazine says there’s an 83% return on investing in even just minor kitchen remodeling.
10. Creating storage space
Older home models tend to lack basic storage options, which can seem unappealing to homebuyers because when you are buying a home you want to have as much space as possible. Most people are looking for basic storage, at least. One consideration is redesigning closet space, creating walk-in closets. Expanding rooms by building linen closets also create more square footage, but, most importantly, it creates more space for storage. This adds to not only your home’s value but also its functionality.