Renovations that Pay Off (and The Ones that Don’t)
Homeownership is great in a lot of ways—you get your own space that you can customize as you please, you can have as many people over as you want, you can have pets without paying extra fees, you get space to fit more belongings, etc. But homeownership can also be a big burden—you are responsible for any and all necessary repairs, you have to buy tools and equipment to help with maintenance for things like the lawn, you have to pay the cost of all utilities, and so on.
Owning a home has both its pros and cons but even despite the pros, after a while, many people find themselves needing to move. Whether it be because the home is too small, it’s time for an upgrade, there’s a new job is in another location, it’s not worth the cost of maintaining, or it’s simply a good market and the right time to sell, there are a number of reasons that homeowners part ways with their houses. No matter the reason, though, many want to get the most out of it that they can, and that often means making updates and/or doing renovations to boost the value of their home before it goes on the market.
If you’re getting ready to sell your own home and are deciding which renovation projects to take on, you may be having a hard time figuring out what’s worth it and what’s not —some renovations are worth more than others, but it can be hard to tell since the potential buyers’ personal preference will come into play as well.
Luckily, there are a few renovations that will generally pay off, and a few that generally don’t. If you’re considering renovations for your house, here are the ones you should move forward with and the ones you should avoid:
Renos That Will Make You Money
If you’re considering remodeling your kitchen before listing your home for sale, stop considering and start doing. While you don’t need to do a full-on kitchen remodel, doing minor upgrades and updates to make it look current and fresh will have a positive impact on your home’s overall value, helping you get more bang for your buck.
Doing renovations or upgrades that result in energy savings is a good idea when you’re planning to sell your home. Things like replacing insulation, upgrading windows, replacing appliances, etc. will add value to your home and help you get more money out of it when you go to sell it to new owners.
Curb appeal is big for many buyers, and if you have old, outdated, faded siding that you’re considering replacing, you should. New siding can give your house a totally fresh new look and will attract more buyers than you might think.
Again, curb appeal has a big impact on buyers and the front door plays a big role in that for such a seemingly small aspect of the house. Replacing the front door is relatively cheap, easy to do, and will have a positive impact on your home’s value, helping you recoup your costs and get more out of your house, whatever the reason you’re planning to sell.
If you have an unfinished basement or a basement that needs some upgrades, then doing those before you list your house on the market is a great way to go. While some people love the potential of unfinished space, many would prefer a space that has potential but is finished so that they can move in, customize it, and start using it right away.
Renos That Aren’t Worth What They Cost
You might want to consider adding a fresh coat of paint, but in general, a full bathroom remodel or the addition of a bathroom isn’t worth what it costs. The average ROI for a bathroom addition is only about 56 percent, meaning that you won’t be able to recoup much at the time of resell.
Having a deck is great and gives you the chance to get outside and enjoy the summer evenings. It’s not something buyers are really looking for, though, so if you’re considering adding a deck as a way to add value, you may want to think twice about it. The money you would spend on the deck could be put towards a more valuable renovation instead.
Everyone seems to think that everyone wants a luxurious master suite, and while that may be true to a degree, when it comes down to it, people would rather pay a good price for a house they like than pay a lot more for just a master suite. On average, adding a master suite costs over $100,000 and only results in a 64 percent ROI, so it’s not a renovation that’s worth it if you want to add resell value to your home.
When it comes time to sell your home, there are a number of renovations that you might want to consider doing in order to increase its value and get more money when it’s time to close. Not all renovations are worth the cost, though, so although you may want to remodel the kitchen a bit, adding a bathroom or deck won’t add the same value and isn’t worth the money or time.
Which renovations are you considering doing before you sell your home?