A home is a big investment. Most people purchase a home with the intention of staying in it for at least five to ten years, but it’s still important to look to the future and the potential eventuality of selling. The housing market is competitive, so ensuring that your house stands out against newer constructions or more high-end builds is important to ensure that you get back what you put in. If you think you may sell your home at some point or are simply looking to give it an upgrade, there are renovations you can invest in that pay off tenfold in the long run. Keep reading to learn more about remodels and renovations that increase home value and get a great return on investment!
Renovation vs. Remodel
The words renovation and remodel are often used interchangeably in real estate; however, the reality is that these terms actually imply different things. Whereas a renovation refers to the restoration or invigorating of a home, remodeling has more to do with altering the structure of a home’s floor plan. In general, renovations are less dramatic alterations and typically less expensive than remodeling.
What Renovations Increase Home Value the Most?
There are many different renovation projects that you can undertake to increase the value of your home. Check out this list before you decide what is best for your house:
- Many homeowners find that not only does adding attic insulation save them money on energy costs while they remain in their home, but that they recoup the entire cost of the project in the added value to their home.
Steel entry door replacement
- Steel doors offer more strength and durability out of all materials. In addition to the benefit of security and longevity, they boast the benefit of energy efficiency and low maintenance.
Minor kitchen remodeling
- Although it might feel necessary to give your kitchen a complete remodel, only small changes are necessary to significantly boost the value of your home. Simple touches like upgrading the backsplash or restaining the cabinetry go a long way when it comes time to sell.
Garage door replacement
- Not only does replacing the garage door boost curb appeal, but it can also make your home seem more upscale or modern based on current trends.
- As far as home improvements go, a fresh coat of paint is arguably the best bang for your buck when it comes to renovations. A new paint job, as low-cost as it is, goes a very long way to cover up wear and tear, and it also serves to instantly transform the entirety of your home, both interior and exterior. Even a simple coat of white or grey paint or some other neutral color, can bring new life to your home and expedite the selling process.
- Buying new windows is a common change that homeowners invest in before selling their homes. Windows are common points of interest for potential buyers and appraisers, so installing new ones does not usually go unnoticed. Although it’s a more expensive remodeling project, this is easily recouped and can also add additional security to your home.
- Accessible homes have become more and more common in recent years. Adding a ramp to at least one point of entry in your home could make it more desirable to a family with a need for wheelchair mobility or other accessibility concerns.
- Old or faulty roofing is something that appraisers and home buyers will notice. Investing in a roof replacement sooner rather than later can also save you money!
- Many people find the prospect of being able to enjoy the outdoors comfortably, an added bonus when purchasing a house. Consider adding a front or backyard deck, especially if you live somewhere with consistently pleasant weather.
- Modernizing your light fixture is another great way to add value to your home! Dated fixtures, although easily replaced, can dissuade buyers.
- Finishing your basement is a great way to add value to your home with otherwise wasted square footage. The additional space in the home might be appealing to someone looking for a home office, child’s playroom, home theater, or simply additional entertainment space.
Swapping carpet for hardwood floors
- In general, hardwood floors offer enough benefit to warrant the cost. Because of the easy cleanup and longevity of hardwood or laminate flooring, it is more appealing to homeowners than carpet, especially for people with pets and children.
How Much Does a Renovation Increase Home Value?
Depending on the scale of your renovation, the increase in home value can vary. If you put in vinyl siding, hardwood floors, or a new roof, your efforts can add a lot to the home’s value. But even a fresh coat of paint in your living room or putting in an energy-efficient door can appeal to home buyers.
When to Not Renovate Your Home?
There are definite benefits to renovating your home. However, sometimes it can be a pointless expense. If your neighborhood is undesirable or similar homes in the area are not selling well, it may not make you much more money to invest in renovations. Conversely, if your home is in a high-demand area, you may be able to make a profit on the sale without having to make any renovations on your own. Homebuyers or property developers might be interested in buying your home as it is and then undertake the renovations themselves.
How to Budget for a Renovation
As a general rule of thumb, you shouldn’t spend more than 15% of your home value on renovation prior to selling. You might not need to budget at all for low-cost renovations, but starting to set aside some money for bigger projects is a good idea.
You can also consider getting a home renovation loan. Oftentimes, mortgage lenders can add this cost to your initial mortgage, especially if there is a good prospect of increasing the home’s value.
Let the Pros Help You Get the Job Done
Whether you are looking to paint your home, restain your cabinets, or invest in custom cabinetry, look no further than Pro Painters. Our experienced team has provided renovation services to the Greater Houston area for years! Contact us today for a free quote on renovations that increase home value.