How Home Improvements Impact Property Value
Home remodels and improvements are a fantastic way to give your space a makeover or create additional space. But will they improve your property value if you decide to sell your home one day? To answer that question, it is crucial to realize that different home improvements have different impacts. While some will increase your home value, some will frustrate your efforts to sell.
In this article, we help you tell the difference between projects that will positively impact your property resale value and those that will negatively affect it. But first, what are the factors to consider before embarking on a home renovation project? Read on.
What to Consider Before Renovation Works
The main factor to consider before a renovation project is the return on investment (ROI). It is a function of the following:
Local market characteristics
State of the real estate market at the time of selling the property
Quality of work carried out
Projects That Offer the Best Resale Value
Renovation projects with the best ROI and hence the highest resale value include:
Kitchens: Incorporating modern appliances and styles in your kitchen is one sure way to significantly improve your home's resale value, especially if it is an old home.
Bathrooms: Bathroom remodels are the second best thing after kitchen renovations that you can do to raise your property value. All you need to do is modernize older appliances or styles.
Outdoor Spaces: Given that potential buyers will always see the outside of your home before getting inside, it helps to spruce up your home's outdoors if you want to make a statement. Landscaping and siding are an excellent place to start.
Windows and Roofs: These two cost a lot to replace, so buyers will want them to be in perfect condition.
Other renovation projects that can improve your property’s resale value include garage door replacement, entry door replacement, and deck addition.
Projects That May Hurt Your Property’s Resale Value
Some home improvements are not worth pursuing as they may not align with future buyer preferences. This could negatively impact your home's value.
Here are some projects that you may want to place in the no-go zone:
New Pool: You may think that a new pool could magically triple your home value, but you are wrong! Some buyers might find maintaining a pool an exhausting exercise, while others with young children may find it a safety hazard.
Luxury Upgrades: While tile varieties like marble can improve the aesthetics of bathrooms and entryways, not every buyer may be a huge fan of them. This is because they may not want to be bothered with paying extra for something they think is unnecessary.
Garage Conversion: Turning your garage into a storage space may seem like a good idea to you, but you need to realize that there are potential buyers that may need it to park their cars.