Part 2 Of Everything You Need To Know About Your Home's Value Series
In the real estate industry's viewpoint, a home’s condition can be classified into four categories: poor, fair, good, and excellent. Whenever you’re considering any renovation for your home, don’t forget to ask yourself these questions first: “Am I taking the condition of my home into a ‘good’ condition?”, and “What will this update do in terms of value?”
Even if you can’t see yourself moving in the near future, home improvements have an impact on your home’s value and appraisal. And the reality is that not all remodelling projects or upgrades will increase your home’s value enough to recoup the entire cost of the improvement. In some cases, although it will add great satisfaction to you and your family, an upgrade may not increase the value of your property and may even bring it down when it’s time for you to sell.
With the help of statistics from the 2020 Cost vs. Value Report by Remodelling magazine, we've listed significant home improvements that boost a home’s value:
Minor Kitchen Remodel
Because the kitchen is considered the heart of the home, updates in this space generally pay off. A minor kitchen remodel has an average cost of more than $23,000, and recovers about 78% of your spend at resale, compared to an upscale one which has a lower return on investment. It's a key money saver and also the best choice if your space just needs a cosmetic update.
For example, putting a fresh coat of paint can go a long way in updating the look of your kitchen. Consider using low-VOC paint to make it more eco-friendly. Other projects may include replacing cabinet fronts with an updated style and adding recessed lighting to brighten the countertops. Also, small, inexpensive upgrades such as adding matching drawer knobs, cabinet pulls, and faucets can easily add a modern touch to the room but can have a big impact when it’s time to sell.
Bathroom Upgrades
A midrange bath remodel can recoup as much as 64% during resale. And just like with the kitchen, you can give your bathroom a face-lift just by swapping out fixtures. Simple fixes such as replacing the vanity lights, removing dated wall coverings, and replacing old shower doors can usually do the trick. To make it more energy-efficient, replace your old toilet with a low-flow model that uses less water per flush.
But if your home has only one bathroom, it might be better to spend money on adding a second bath or a half-bath rather than remodelling your existing one. A new bathroom will not only improve your home's interior but can also raise its value. It might be less costly to convert any small or underutilized space, such as a walk-in closet, an area under the staircase, or an old laundry room, although it still depends largely on the items and accessories you will use. Yet, a half-bathroom is critical for homes without a bathroom on the main level.
Remodel An Existing Space / Add Square Footage
If you can remodel and utilize unused areas, such as your attic or basement, it's a good way to boost value and add square footage to your home. You may opt to finish a basement and reinvent it into an entertainment bar, a game room, or a second living room; convert the attic space into a bedroom or a kids’ playroom; or turn a walk-in closet into a home office.
This way, even if you’re planning to stay in the home for a few more years, the extra space will be enjoyed and benefit your family. And once you’re ready to sell, having a versatile room that can be converted into anything will have a great appeal to prospective buyers.
Window Replacement
Old, drafty single-pane windows are now a major turn-off for many potential buyers, especially if energy efficiency is in mind. Replacing double-hung windows with insulated, low-E vinyl windows recovers about 73% of the costs. Modern windows help with energy savings and also add curb appeal to a home.
Deck, Patio, Or Porch Addition
Outdoor living spaces have become more desirable. Adding a deck is one way to upgrade your outdoor living space and increase your home's value. While it can cost anywhere from $14,000 to $19,000 on national average, it can recoup as much as 72% during resale.
If a facelift is all you need, consider improving your deck or patio by adding small details such as decorative planters, lighting, and other features that enhance curb appeal.
Entry Door Replacement
Replacing your front door with a new steel entry door consistently delivers one of the best returns on investment. An average steel entry door replacement costs more than $1,800 and returns almost 69% at resale.
Garage Door Replacement
A new garage door is one project that practically pays for itself, recouping about 95% of your costs at resale. It also improves security and boosts curb appeal.
Roof Replacement
Replacing a roof can recover almost 66% of its cost at resale. Buyers appreciate a new roof because it saves them future hassle and expense, especially if the existing roof is nearing the end of its lifespan.
Adding Stone Veneer
Installing manufactured stone veneer can recover as much as 96% of its cost. It’s a versatile upgrade that can be added to porches, fireplaces, or feature walls.
Basic Updates Like Paint, Minor Fixes, And Fixture Replacements
Small projects like touching up paint, replacing old hardware, cleaning exterior elements, and making minor fixes can signal a well-maintained home and boost buyer confidence.
Bottom Line
Kitchen and bathroom remodels continue to be two of the best investments for boosting appraisal and resale value. Whether your goal is enjoyment or return on investment, avoid over-improving beyond the neighborhood standard.
