Owning a home essentially comes with an endless list of projects. However, as a savvy homeowner, you want to make sure you’re investing your time and money into renovations that boost the value of your property.
You’re not alone with this idea, as 94% of homeowners have at least one home renovation project planned for 2023, according to a study by Cinch Home Services. Most — 62% — people are motivated to make upgrades to increase the value of their homes.
Maybe you’re planning to sell your home in the not-so-distant future. Or, perhaps you simply don’t want to invest money in a project that doesn’t make sense financially.
When it comes to renovations aimed at increasing the market value of a property, Cassie Alongi, CEO and co-founder at We Buy Any House In California, said people sometimes get it wrong and pay the price.
“Instead of increasing the value of their homes, they are only increasing the perceived value,” she said. “The buyer may care, but the appraisal officer doesn’t.”
Therefore, she said it’s important to know which upgrades to invest in and which to avoid.
Want to make sure your planned upgrades are a good financial move? Keep reading to discover 10 renovations that will raise your home’s value.
Since it’s not technically part of your home, landscaping might not seem like a big deal, but Alongi said curb appeal matters.
“You don’t need to do too much,” she said. “It requires proper planning that includes organization and space creation.”
Generally speaking, she said the outside of your home should be kept clean, made spacious and elevate the overall appearance of the property. She also recommended improving your outside lighting.
“Poor landscaping can be worrisome,” she said. “It can easily give buyers the advantage to price your property low in negotiation, by pointing out visible flaws.”
Minor Kitchen Updates
Many people invest in a full kitchen renovation, but Alongi advised against it.
“Renovating the entire kitchen … is fatal,” she said. You won’t get your money back.”
In the case that you’re only planning to do one this room, she recommended tackling the kitchen in a small way. She said it’s best to do a minor remodel because you will only recoup half of your investment.
“If you decide to choose creativity, you can get something out of that,” she said. “Improving your kitchen’s lighting, fixing your cabinet handles [and] creating space in the kitchen can go a long way to boost your home value.”
She said these minor adjustments will make a difference without costing a fortune.
If you’re not doing a kitchen renovation, upgrading your bathroom can be a great idea.
“A clean, modern bathroom can make a big impression on potential buyers, and it’s a space that people use multiple times a day” said Nathan Claire, a real estate agent in Jacksonville, Florida, and the founder of Buying Jax Homes. “Upgrades to consider include installing a new bathtub or shower, replacing outdated fixtures and adding new flooring and lighting.
Since a bathroom is an essential part of any home, he said a well-designed one adds a lot of value.
“People are often looking for a spa-like experience in their bathrooms, so upgrading your fixtures, adding new lighting and installing a luxurious bathtub or shower can all make a big difference in the overall appeal of your home,” he said.
Outdoor Living Space Addition
“This could include a new deck or patio, an outdoor kitchen, or a fire pit area,” Claire said. “Outdoor living spaces are becoming more and more popular, and they offer a great way to extend your living space and enjoy the great outdoors.”
He said outdoor living spaces add value to your home because they serve as a unique and desirable feature coveted by many buyers. “They also allow you to enjoy your property in new and exciting ways, and they can make your home feel more spacious and open,” he said. “Outdoor living spaces can be especially effective in areas with mild climates, where they can be used for a large portion of the year.”
Add a Room or Living Space
“This could include converting an attic or basement into a bedroom, adding a new family room or game room or even building an addition onto your home,” Claire said. “The key is to create more livable space in your home, which can be especially valuable if you’re in an area where space is at a premium.”
Whether you’re planning to sell your home or make it more comfortable for your family, he said adding space can be an all-around win.
“It can also give you more room to spread out and enjoy your home, which is a valuable feature in and of itself,” he said. “Additionally, adding a new room or living space can be a great way to add functionality to your home, such as creating a home office or workout room.”
Paint the Exterior
“A fresh coat of paint can improve your property value,” said Justin Draplin, CEO at ECLIPSE Cottages. “Sometimes homeowners need to give their house a fresher look, which will immediately affect their curb appeal.”
He said it’s nice to give your home an exterior upgrade, even if you’re not planning to sell it for some time.
“The great thing about painting is that most people can do it themselves,” he said. “But, if you hire someone to do it for you, depending on the size of your home, it should be relatively inexpensive.”
Put Up Walls
“The popular open concept is transforming,” said Karen Kostiw, a real estate agent with Coldwell Banker Warburg, based in New York City. “There is a shift towards a hybrid or semi-closed-off floor plan — a direct result of the pandemic where more family members work at home and seek privacy.”
Since people tend to be home more than they were pre-pandemic, she said more personal space is needed.
“Sometimes, one family member watches TV or entertains friends, and another has an important work call,” she said. “Different spaces must accommodate different people’s needs throughout the day.”
Replace the Garage Door
You might think of your garage door as strictly functional, but it’s part of your home’s exterior. If it’s outdated, dented or notably scratched, it will lower your curb appeal.
The average garage door replacement costs $4,041, according to Remodeling magazine’s 2022 Cost vs. Value report. However, you’ll recoup 93.3% of these costs, making it a solid investment.
If you have no plans to move anytime soon, you might also benefit by getting ahead of any maintenance issues.
Add Manufactured Stone Veneer
If your home’s exterior is covered in siding, consider spicing things up a bit by adding manufactured stone veneer. The average cost to remove a 300-square-foot band of existing vinyl siding is $11,066, according to Remodeling magazine’s 2022 Cost vs. Value report.
This certainly isn’t a small amount of money, but you can expect to recoup 91.4% of it. This can be a great way to make your property stand out in a neighborhood where many of the homes share a similar look.
Get New Windows
Whether you’re planning to move anytime soon or not, replacing old windows is an investment that will pay itself back. This will almost definitely lower your utility bills, while also making the temperature in your home more comfortable during every season.
The average cost to replace 10 existing 3-by-5-foot double-hung vinyl windows is $20,482 — you’ll recoup 67.5% — according to Remodeling magazine’s 2022 Cost vs. Value report. Slightly more expensive, you’ll spend around $24,388 to replace 10 existing 3-by-5-foot double-hung wood windows, recouping 66.3% of the cost.
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