What are the most important renovations to make? This is the most common question people ask before starting a renovation project. The possibilities are endless. However, increasing the value of your home should be at the top of your list. You do not want to overspend, which decreases your return. Instead, you want to spend wisely for a large return. Following, are some areas to focus your renovations towards.
A kitchen renovation has the potential to add the most value to your home. The key is to keep your renovation as minimal as possible. You can do this with smaller projects instead of completely gutting the room. According to Homes.com, an $18,000 renovation can return approximately 83% of the money spent. A major kitchen renovation can cost an estimated $55,000 and only return 74%. Those numbers are staggering. In order to accomplish the lower price, consider installing new appliances and flooring. Instead of brand new cabinets, consider restaining and adding fresh hardware. Furthermore, new countertops add eye appeal.
Create Open Floor Plan
The flow of the living area is crucial to selling a home. Buyers look for open and simple living space. Accomplish this by removing interior walls that do not provide structural need. The more you can see one room from another the better.
Adding Living Space
Adding additional living space instantly increases your home’s value. According to Cost vs. Value, converting an attic into living space had a 84.3 percent return on investment. Many buyers can use attic space for a bedroom, craft room or office. If a basement can easily be finished, it is another option to create living space. There are many benefits for an additional living room or recreational room.
Bathrooms are another major area that buyers consider when purchasing a house. Similar to a kitchen renovation, spending money wisely is important. A complete bathroom renovation can cost up to $25,000. The most expensive part of a bathroom renovation is moving elements, which then requires moving plumbing. It is ideal to keep the same floor plan and work with what is there. Replace fixtures, flooring and counters. If it is feasible, adding extra space is very appealing to buyers.
Flooring and Ceiling
Flooring should be a priority with renovation. It is one of the cheaper projects and adds value. According to This Old House, For an estimated average investment of $600 to $900, brokers report that the return in value comes in at up to $2,000. Not all flooring has to be completely replaced. Some wood flooring just needs a little maintenance and makeover. People sometimes forget about the ceilings of a house. However, popcorn ceilings are a major turnoff to buyers. It is a simple project to remove this type of texture to avoid negative views.
Doors and Windows
Doors and windows are a major component of curb appeal. Install a new garage door and exterior doors to make the home look newer. Furthermore, adding energy-efficient windows not only look nice, but also save buyers money on heating and air bills. The projects are on the lower end of cost compared to others. The average return on investment for these projects is almost 72 percent.
People spend more time outdoors at their home. Outdoor living space is appealing to potential buyers. Adding a deck is a simple project that does not require a large amount of time. HGTV claims that homeowners recoup 65%-90% of their investment by adding a deck. Along with this area, the landscaping should receive some attention. Anytime the lawn looks nice and maintained, the curb appeal increases. This has the potential to add traffic for viewings.
There are numerous renovations that can be made to increase your home’s value and likelihood of selling. It is not realistic to complete all of these. Focus on the above areas to spend your money wisely to get the most return on your investment. To learn more about funding your renovations, contact Center Street Lending for more information and ideas.
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