This is a great time to think about how remodeling might increase your home’s value.
Will you be making renovations to please yourself or potential buyers?
Top of the List
The best investments tend to be projects that improve your home’s curb appeal. Following closely behind are updates that refresh the look of your home’s interior. Homes that have been well-maintained are nice, but those with improvements can attract more bids and sell faster. Top on any renovation list should be painting (both inside and out) & replacing carpets.
Major Renovations Often Add Less Value
Large remodeling projects often yield lower returns on investments than smaller ones. Major kitchen or bath renovations should deliver about 60% ROI, so keep in mind that more of their value might come from making your home more comfortable. However, an old, ugly, out dated kitchen could turn off buyers who might otherwise make offers. So, in some cases, much needed renovations yield 100%+ return on investment.
Not All Renovations Are Good
Certain renovation / remodeling projects can have limited appeal to future buyers. While some love a jetted tub, others may prefer a walk-in shower. Home theaters are great, but not to everyone. Swimming pools are probably one of the biggest single-item deal breakers in Florida. Buyers either want a pool or they don’t. Ask any Realtor, IF he/she sold a house without a pool to someone who wanted one, it’s only because of budget, or plans to add one later, & you’ll be hard pressed to find a Realtor who has sold a house with a pool to someone who didn’t want one.
How Much Are Home Improvements Really Worth?
When planning a renovation, consider the fair market value of your house compared to the sale price of others in your neighborhood. If homes similar to yours are selling for about the same price as other homes in your neighborhood, then it would be difficult to justify pricey renovations. However, if homes like yours are selling for $50,000 less than others in the same area, then making renovations may be exactly what you need to justify an increase in your asking price.