To add value to your home, you don’t have to spend a lot of money or build something new. You can make improvements that will help your house sell for more than you think. Many homeowners choose to renovate their homes before putting them on the market so they can get a better price.
However, some renovations actually decrease the value of a home while others increase it. It’s important to be aware of this because when it comes time to sell, buyers will expect those renovations that increase a home’s value at a minimum.
What Renovations will Increase Home Value the Most?
One of the most common questions we get is, “What renovations will increase my home’s value?” The most valuable renovations are those that increase the home’s livable space, however, you must factor in the age and condition of your home.
Showing that you care enough to make changes to your home can go a long way when you’re trying to sell it. So which renovations are actually going to help you get the most bang for your buck?
Adding an additional bedroom or bathroom
Adding an additional bedroom or bathroom can be expensive, but if you have the space for it, adding these types of rooms tends to bring in the biggest return on investment over time. They’re one of the most important upgrades a home can have in order to attract buyers and increase its value. If you don’t want to do a full renovation you can do a bathroom remodel and still spruce up the space.
Expanding the kitchen or living room
If you have enough room in your home, then expanding your kitchen or living room may be worth considering. This is especially true if you have a smaller kitchen and want to add more counter space or if you want to open up your living room into an open concept area. Open concept kitchens are great for entertaining, or if you have large families.
Installing a brand new kitchen
The kitchen is the heart of the home, so it makes sense that this is where most people want to put their renovation dollars. But how much will an updated kitchen actually add to your property value? According to Remodeling Magazine, replacing a dated kitchen with new cabinets and countertops can add 3-5% in resale value. If you’re looking for something more extreme, adding an island or remodeling your pantry can add up to 8%.
Adding a second-story addition to a ranch-style house
If you have a ranch-style house (one story), then adding a second story can be an excellent way to increase the value of your home. Adding another floor will give you more square footage, which means more rooms and spaces that can be used for various purposes. Basement remodeling is also a good option to spruce up and add more livable space.
What Renovations Decrease Profits
Like with anything in life, there are pros and cons. When you decide to renovate you should keep in mind that this is for potential buyers and not just what you want. That being said, below are a few common renovations that may not be worth the cost if you are trying to resell your property:
Installing a pool
One of the biggest renovations that decrease profits is installing a pool. The cost to install an inground pool in Utah averages anywhere from $35,000 to $55,000 and sometimes upwards of $65,000 for special customizations and extra features. Unless you plan on adding the pool and enjoying it for a few years yourself, it is not worth adding to just sell the home. You will not recoup 100% of the costs you put into it.
Over renovating an Older Home
If you are trying to sell an older home and update it, it is important not over renovate the property. Over renovating an old house can make it harder for someone to see the potential in the property. A good example of this would be too high-end flooring or cabinets that don’t fit with the rest of the house’s style.
Installing high-end flooring like hardwood floors or tile is an easy way to improve the look of any room in your house. However, your potential buyers may not feel the same way about wood floors and tile. If they want carpet they will likely just rip up the existing flooring, no matter how new it is. So while adding new flooring may be necessary, it does not need to be high-end flooring. It can be something trendy and affordable that appeals to many people’s styles.
Hire a General Contractor When You’re Ready to Renovate Your Home
The difference between selling a standard updated home and one that has been extensively renovated can be up to 20% or even more in some cases. With that said, you should always take into consideration what other homes in your area have sold for and how much they have been renovated.
If you’re ready to renovate your home, hiring a general contractor is a good idea. A general contractor such as Allied Remodeling Contractors will take on a variety of jobs and can coordinate the various subcontractors needed for a project. By hiring Allied Remodeling Contractors you don’t have to worry about finding a plumber, electrician, or other sub-contractor yourself. Instead, our general contractor will handle all of that for you.
Call us today at (385) 412-8088 or schedule your consultation & quote. Let’s discuss how we can help you renovate your home and increase your selling potential.