The Top 4 Spaces to Renovate to Increase the Value of Your Home
When you invest in renovations, you can improve your quality of life and increase the value of your home. Some sellers wait until they are ready to put their home on the market to make home improvements, but if you plan on making changes in the future it may make sense to renovate now so you can enjoy the upgrades.
Renovating your home can make it much more enticing to homebuyers. People in the industry say that you can expect home renovations to provide a 70% return on your investment, on average. But some renovations give you a better return than others when you sell and yield a higher ROI (Return on Investment).
When you remodel your kitchen and bathrooms, for example, in some real estate markets you can expect to get back 100% of your investment or even more when you sell. Your ROI depends on your location, the local real estate market and the type of renovation you undertake. And of course, timing plays a role.
Some luxury upgrades may not appeal to buyers and may not give you a good return on your investment, unless you live in an area where such upgrades are common. So think twice before you add a swimming pool, contract for renovations using expensive materials or install specialized spaces like wine cellars and home theaters, unless you make the improvements for your own pleasure.
Home improvements that add more functional space and square footage tend to give you the best return when you sell. Keep in mind that home improvements like landscaping, replacing the entry door and adding a patio, deck or porch that will expand your outdoor living space are also worth the investment.
So what are the best rooms to renovate when it’s time to sell? People in the industry say that remodeling the kitchen, renovating the bathrooms and finishing the basement can give you the best ROI for your money when you put your house on the market.
Renovate the Bathrooms
An updated bathroom is one of the best investments you can make when it comes to renovating your home. With a minor bathroom remodel costing around $10,000, you can expect to get your money back when you sell, or even a little bit more, while a major bathroom overhaul costing around $26,000 will bring in around 93% of the cost.
Creating a spa-like bath means changing the flooring, the shower, the tiling, the vanity and the countertops. It is a good idea to pay attention to the lighting to give your updated bathroom the ambiance that will resonate with buyers.
Renovate the Kitchen
Renovating the kitchen is a top priority if you want to make your home more attractive to buyers. A modern, functional kitchen can make it easier to prepare meals and entertain guests, and a renovated kitchen is a definite plus when buyers come to view your home.
A minor kitchen remodel can cost around $15,000 and you can expect an ROI of 98.5%, while a major kitchen renovation can cost anywhere from $76,000 up to $150,000 for an upscale total remodel. Changing your kitchen layout is a practical decision as well as a design choice. A major kitchen renovation can include removing a wall to create a more open concept space. Kitchen renovations include updated cabinets and countertops, upgraded appliances and new flooring.
Refinish the Basement
If you have a basement, you have the opportunity to create usable living space and turn your dark basement into a selling point. Remodeling your basement can provide a place for the kids to play, create an entertainment space for adults and expand your storage space. These days many people are working remotely and the basement can provide the perfect spot for a home office. The average cost of a basement remodel is $50,000 with an average return of 90% when you sell.
Renovate the Primary Suite
When potential buyers come to see your home, they often pay special attention to the primary suite, so renovating the primary bedroom is money well spent. An attractive, spacious primary suite can go a long way toward encouraging buyers to see themselves living in your home. If you increase your closet space by turning a small closet into a walk-in closet or adding another closet you can make your primary suite even more desirable.
Here are some important things to consider before you invest in a renovation for your home.
Is your renovation plan too trendy, or will it endure and remain attractive to buyers in the future?
Are the upgrades within reason for your neighborhood, or are they over the top and unlikely to resonate with buyers who come to see your home?
Will the renovation add more square footage and make your home more practical?
Do the renovations you are considering add to the quality of life?
When you are ready to put your home on the market in New York’s Finger Lakes region, Kelli Ide can help you make smart decisions about renovating your home.
Kelli Ide offers a unique, concierge-style approach to real estate, including staging, photo styling and market preparation services exclusively for clients to give them an edge over the competition.
For further information about buying or selling a home in the Finger Lakes, visit kelliide.com.