Renovations That Can Increase The Value Of Your Home2017-07-05 00:28:04 Posted By Amir Hamzehali
Increasing the value of your home with renovations is a topic that peaks a lot of interest. While you always want to be thinking of how you can increase the value of your home, the reality is that not all home renovations generate as much ROI as you might have thought.
Not every home renovation will generate value just because it’s new or because you spent money on it. In fact, some renovations will require a lot of your money but will never give you any of those dollars back. Some renovations simply generate more value than others.
That’s why home renovations need to be strategic. To be strategic about your home renovations means that you need to have the research and be up to date on the renovations that will give you the best bang for your buck.
You have to lay the groundwork first. The home renovations that generate the greatest amount of return, overall, tend to be maintenance projects and repairs.
Remodeling Magazine found that replacing your siding can generate a return of 77%. Replacing your vinyl windows generated a return of 73.3%.
While kitchen renovations, a very popular home reno, generate equally high return on resale, overall maintenance and repairs generate great ROI overall.
Before you swap your laminate kitchen countertops for beautiful granite, you should think twice about whether any aspect of your home needs maintenance and/or repairs.
The reality is that many homebuyers won’t get past the front door if they have to deal with the uncertainties of a home that may have a leaky roof.
When it comes to renovations that generate the most value, kitchen remodels are always at the top of the list. Indeed, Remodeling Magazine found that a minor kitchen remodel generated a return of 83.1% or $16,716 with a major kitchen remodel generating a return of 64.9%.
You can see this data here.
In other words, a little goes a long way with kitchen renovations.
A minor kitchen remodel would involve such things as replacing the fronts of outdated kitchen cabinets to more traditional options like wood. It means replacing the laminate countertops for stone and perhaps installing a mid priced sink and faucet.
The kitchen is the heart of the home and people spend a lot of time here, which is why kitchen renovations are always such a good investment and one of the best ways to generate value.
The key is to ensure that your kitchen remodel doesn’t outdo to the rest of the home. You also need to take into consideration your neighbourhood as well.
Bathroom renovations are also cited at the top when it comes to home renovation projects. A midrange bathroom renovation will generate a return of 65.7%, the equivalent of a major kitchen remodel. You will see a return of about $11,769 dollars.
As to what part of the bathroom renovation will generate the most value, the idea of sticking with the traditional applies here, too. That means opting for stone countertops as mentioned above and stone floors.
That said, there is one thing to keep in mind. If you’ve got an older home that only has one bathroom, it is typically a better investment to sink your money into a bathroom addition - than investing into a remodel.
The topic of energy efficiency is not just a hot topic; it’s here to stay. Homeowners are becoming increasingly aware of their environmental impact while being lured toward greater savings on their utility bills.
Many homeowners are willing to pay more for homes that have prioritized energy efficiency.
Any time you increase the energy efficiency of your home, you are going to increase its value. Fiberglass attic insulation can generate a return of 116% according to Remodel Magazine.
If you replace your 15+ old windows with more energy-efficient alternatives, you will see a return of anywhere between 60 to 90%, according to HGTV.
Now that you have an idea of what remodels will definitely generate a great ROI, what about the home renos are simply not worth your time? In general, swimming pools and gourmet kitchens with fancy accessories are not going to do you many favours.
Here is a look at a few other home renovations you may want to put on the back burner (or the shelf) - home renovations to avoid.
If you are putting your home on the market, consider Amir Hamzehali, now the number one real estate agent in British Columbia.