Whether you are a homeowner taking advantage of the ever-increasing home prices to add a deck and patio or a real estate agent encouraging clients to put in granite countertops, you may have wondered whether hiring architects, builders, and renovating the house will increase the value of the home.
Do renovations add value? Renovating your home can be a stressful experience. There are a lot of decisions to make, and it’s easy to feel overwhelmed by the process.
When you’re making choices about countertops, backsplashes, cabinets, and appliances in the kitchen, it can be hard to know whether it’s adding value or costing money.
If you have been thinking about it, we are here to put things into perspective to help you make a decision.
Go For Practical Updates
When buying a property, specific home improvements will add value to your home, while others won’t. Upgrades that are functional and practical — those that increase the comfort of the house or make it more energy efficient — will add value.
Many homeowners think they need to do a complete renovation to get top dollar. However, this isn’t always the case. If you have a long list of home improvement projects, it can be tempting to tackle them all at once. But that’s not always the best strategy.
Do only the minimum upgrades needed for your home to be sale-ready. Don’t go overboard and invest in a full kitchen remodel to get top dollar.
Also, be strategic with the timing in the renovation as trying to sell a home during a recession can be challenging, especially in some markets. If your neighborhood suffers from high unemployment, your renovation project may not yield the returns you want.
Consider Your Location
The first step is to research how much similar homes in your area have sold for recently. If you know how much similar homes have sold for, then you’ll know what those homes are worth.
Then you can compare those values with what you paid for your home to determine the improvements’ effect on your price when you sell it.
Does your neighborhood have an established track record for appreciation? If so, you might want to consider renovations that appeal specifically to local buyers. However, if other homes on the block haven’t been appreciated in years, consider remodeling for yourself and your family instead of for buyers.
Consider The Return on Investment
Will your renovations return the value you put into them? Sometimes the added value of a renovation, such as a kitchen overhaul or bathroom update, isn’t worth the cost, especially for resale.
For instance, if you plan to sell your home in a year or less, it may not be worth the cost of an extensive renovation project.
But there are ways to add value to your property that won’t break the bank. One way is by taking on projects yourself; although you won’t earn much from them when you sell, you’ll also avoid hiring contractors who can charge hefty fees for their services. You might also want to focus on projects that increase your home’s value by more than their cost.
Bottom Line
When it comes to renovations, there are no shortcuts—you’ve got to be patient. Of course, that doesn’t mean you should approach renovations without a solid plan.
By asking these questions before undertaking a renovation, you’ll be better able to increase the value of your home and protect your investment.
Renovations are good, but only when they generally follow good design practices. Do things like build it to last and make sure that it’s functional, and you’ve got a winner. Keep it simple, work with an experienced home addition builder DC and keep it as practical as possible.
