Whenever you remodel your home, it’s always a big decision. The money spent on a professional renovation isn’t just money spent to make you happy—it’s also an investment in your home. But some projects, while improving the visual appeal of your home, may not add as much value as you’re expecting.
Whenever you make a major financial investment in your home, you should be considering how much return on that investment you’ll get. Knowing which projects increase the value of your home (and which ones don’t make much of a difference) can actually help you make the decision between two projects that you’re just dying to get started on.
Professional Home Renovations To Add Value
1. Exterior Elements
In terms of money spent, the best bang for your buck definitely comes from replacing old elements of your home like windows, doors, and siding. These all add to “curb appeal” and could be a big help if you decide to sell your home in the future.
2. Kitchens and Baths
Most real estate agents would argue that remodeling an outdated kitchen or bathroom is absolutely essential, because buyers walk into an old kitchen and immediately think they’re going to have to spend another $40,000 to $50,000 if they buy the house, just to renovate the kitchen. But the truth is, the average cost of a minor kitchen remodel in Australia is only about $19,000.
However, while a front door or some siding could be tackled by a handy homeowner, redoing an entire kitchen is definitely a major job, even for a “minor” kitchen renovation. It’s important to do it right the first time. If you cut corners, future buyers will take one look at the kitchen you slaved so hard over and immediately notice the mistakes…and think that the kitchen still needs to be redone! Certified re-modellers will tell you to expect to spend about 25% of your home’s value as an estimated cost to a kitchen renovation.
3. Deck Addition
Putting a new deck on your home doesn’t actually increase its listed square footage, but it definitely expands the available recreation and entertainment square footage in a potential buyer’s mind. Building a new deck also makes the home more appealing to families or people who enjoy the outdoors. Like kitchens, putting in a new deck is a project that many brand new homeowners would rather not take on.
4. Attic Room Conversion
While many people assume that adding on an extra room or bedroom would be a good return on their investment, it’s the rooms you add within the original structure of your home—such as a basement or attic bedroom—that really give you a great ROI. Because it’s much cheaper to convert existing space than to build an entire brand new space via an addition, you’ll really be improving the value of your home for the money spent. A professional renovator can come up with great suggestions that will turn that narrow attic into an open, inviting space, like adding dormer windows or some built-in storage tucked into the eaves.
Improvements Highly Desired In Your Area
If you’re considering other major renovations or additions, such as a pool, a sun room, or a master suite, talk to a professional remodeling company, real estate agents, or other homeowners in the area. Find out what other types of renovations are highly sought-after by local buyers. If you live in the northeast, for example, you may enjoy a pool, but since it’s usable a scant three months out of the year, many buyers might consider it to be little more than a yard-hog that they’ll have to pay to have removed. But in parts of L.A., a pool might be a very desirable property improvement.
Although the renovations listed above may bring the highest value, most renovation projects, if done properly by skilled professionals, will still add value to your home. Even those that score low on many cost-to-value renovation studies, such as a master bedroom addition, will improve your home’s value—it’s just that the return on your investment will be about 20% lower than the ROI on that deck addition you’re also considering.
With a little research and through asking the right questions, it will likely be easy to narrow your project list down to that one project you’re eager to do, but will also increase your home’s value the most.
See our list of recommended local suppliers to help you to achieve the perfect renovation.