Remodeling a home to bring up its value seems like a daunting task. Sure, you can make some cosmetic changes like painting a few walls, replacing the carpet and adding a gorgeous backsplash in the kitchen. These little costs can go a long way in making the home more compelling for potential buyers. But what about bigger remodeling projects? When planning to take up a major renovation, the costs involved the return on our investment needs to be planned very carefully, otherwise, it could be a huge drain, without creating much value and bringing the highest return on the investment and can defeat the very purpose of renovation.
Here’s the Truth …
Most of the time you hear stories about people paying “an arm and a leg” to remodel their home as they wish, while the resale value boost is minimal. That fact doesn’t disregard the reality that remodeling your home does increase the home’s value but the return should be multifold when performing major renovation projects.
That said, as someone looking to sell their home — it’s all about getting the best return on investment. If you’re selling in a low-end market, that means you might only want to remodel and exemplify some important areas of the house. However, if you’re in a high-value market, you may want to remodel on a much larger scale to dazzle potential buyers. The average home buyers will be awe-struck by just one dreamy room — whether it is the kitchen, bathroom, etc. The same does not apply when working with high-scale homes. Regardless of which market your home is located — the best return on investments come from the home improvements found below:
#1 – A Complete Curb Appeal Lift
People really do “judge a book by its cover” when looking to buy a home. An attractive curb appeal says a lot about the homeowner and the home even before potential buyers step into the house. If your exterior is dated, the investment on a new siding can go a long way. Same goes with an old roof. Buyers can reject a home if the roof is in really bad shape as it can upset their budget right after the purchase of the home. These remodeling investments not only increase the value — it also increases buyer’s interest. In a buyer’s market, that one difference means you might actually be able to get a much higher value for your home. In a seller’s market, it means the additional buying interest might even lead to a bidding war.
#2 – A (Sorta) Brand New Kitchen
Nothing sells a home like a beautiful kitchen. The cost of this renovation can be astronomical. However, you can purchase newer kitchens second-hand and have them installed. This side-step can reduce the material cost by as much as 50%-75% in some cases. Sure, it’s a little extra work and planning but with this change, you could literally make a night-and-day change in how your home looks to potential buyers. The average kitchen remodeling usually runs around $30,000 for a decent size kitchen, but if you cut costs substantially by this strategy, you could spend $15,000 or even less and still appeal to potential buyers.
#3 – A Master Bathroom Overhaul
What else could make any wife tell her husband the place is a “no go”? The bathroom! The bathroom has to be perfect, especially if you have the space to make it awesome. At the very minimum, you’ll want to make sure it’s a 4pc bathroom with a modern vanity and tiling. Even with a smaller amount of capital you can take a dated bathroom and make it look great. With the right tiles, paint, fixture and tub insert, you can create a spa-like oasis that every woman (and man) would love. Do it right and the bathroom remodel can get you one of the best returns on your investment.
Conclusion – Think Smart, Spend Smarter
Logic will go a long way in deciding how to best use your money. Remember, most home remodeling jobs add less in value than what they cost to get done. Your best argument for remodeling right before selling your home is the fact that it will increase the overall interest of potential buyers in your home. Try to look at things from a buyer’s eyes. Be smart and don’t fall into the trap of spending more money that you need to — especially since you won’t be enjoying the remodeling for long.