When it comes to getting the best return on your investment, you have to make smart remodeling decisions. Your personal preferences don’t count as much as buying trends when it comes to selling your home. Below are basic tips for home renovations and remodeling ideas to get the best return on your investment.
Basic Renovation Tips
When renovating your home, try to work with the character of the house. For example, if you are adding on to a craftsman style home, do not tack on a large box-shaped room to the rear of the home. This will spoil the home’s aesthetic and put off potential buyers.
If you plan on selling your home in the future, stick with classic looks. When designing your forever home, you can pull out all the stops and make the home uniquely your own. However, if you plan to sell it one day, you will want to appeal to the majority of buyers. While you may love bright and bold colors, it is best to stick with neutral tones.
You will also want to be cognizant of your neighborhood. If your home is worth around $200,000 and all other homes in your neighborhood sell for around $275,000, then it is a safe bet to invest $25-$50,000 dollars to raise the value of your home. However, if you live in a neighborhood where houses only sell for $200-$225,000 you may not see the return on your investment. While your home may be worth more than that, buyers will not be willing to pay it based on location.
Kitchen remodels almost always provide a good return on investment. Potential homebuyers are much more likely to put in low-ball offers if they see a lot of work that needs to be done. That does not mean you need to completely gut your kitchen. You are much more likely to see a return on smaller scale kitchen remodels.
Try to work with the existing layout to reduce labor costs. Repaint, refinish surfaces by upgrading countertops and refinishing your cabinets, install a classic backsplash, and upgrade your appliances. All of these will bring your kitchen up to date without having to make any major structural changes. Again, be sure to stick with classic and neutral tones to appeal to the majority of buyers. Small scale kitchen remodels can come in around $15,000 dollars whereas full teardowns can go well above $50,000 when all is said and done.
Bathrooms are another area of the home that go a long way toward getting the most return on investment. Compare your home to other homes that are selling in your area. If you have a four-bedroom, one-bathroom house and everyone else with four bedrooms has at least two baths, you may want to consider putting in another one. This is especially true if you can add a master bathroom. You can save cost here by putting in a shower instead of a full bathtub/shower combination. Just be sure that the main bathroom has a bathtub. A lack of bathtub in your home can hurt your resell value.
If you have an adequate number of bathrooms, consider giving your existing bathrooms a refresh. Similar to the smaller-scale kitchen remodel idea above, keep costs to a minimum without using cheap materials. Simple ways to improve your bathroom are to install updated fixtures in the sink and bathtub/shower. A new light fixture and fresh paint can improve the aesthetic as well. You can also replace the vanity countertop with something more modern. If you are remodeling your kitchen, see if there are any scrap pieces of stone left from your countertops to use for the bathroom vanity. If not, you can check with local stone yards for leftover pieces of stone from other jobs. This is often much less expensive than cutting a brand new piece of stone.
Unusual Renovations with Good Return on Investment
While you may be tempted to redo your kitchen or bathroom, that may not be the wisest course of action. Address any lingering issue with the house up front before beautifying it. If your roof is in dire need of repair, it won’t matter how nice the kitchen is if homebuyers won’t walk into the home. The same is true for plumbing and windows. If there are leaks or efficiency issues, fix and replace them.
To achieve the best return on investment, smaller scale renovations and fixing existing issues are much more likely to work in your favor than large scale remodels. While you do not want to select cheap or builder-grade materials, you can save a lot of money by working with the existing layout of your homes. The less work your house presents to a potential homebuyer upfront, the more likely they are to put in a good offer.