The Most Bang For Your Buck – Home Improvements
If you are considering a home improvement, it is not always safe to think you will recoup your investment when you sell. Many real-estate brokers agree that just because you put $25,000 of fun improvements in, such as an outdoor Jacuzzi, gas fire pit, and lighted walkways that your house is automatically worth $25,000 more. Even with more practical improvements such as energy-efficient air-conditioning, new roofing, or solar the entire costs may not be recouped when selling. Here are some tips on “best bet” improvements that will likely increase your home’s value.
Exactly how much of your investment you will recoup depends on a number of factors, such as the value of other homes in your neighborhood with similar features and square feet, the “big picture” housing market, the season in which you are selling, and the exact nature of the improvements you invested in.
Kitchen – With just a few basic improvements, your kitchen can practically pay you back sometimes with interest. New paint, wall paper, and flooring are always appreciated. Refinishing or painting worn-looking cabinets along with the hardware is a low-cost improvement with a big impact. According to Remodeling magazine, the average spent on a major kitchen-remodeling is around $39,000; refinishing an outdated one averaged $15,000. The full kitchen remodel recouped 80% of its cost, the more moderate refinishing was valued at 87% of investment costs.
Area Conversions – Increasing the functional space of your home holds its value longer than a cosmetic remodel, generally speaking. It is also much less expensive than adding an addition to your home. Converting attic space into a bedroom, for example, usually costs around $30,000 and returns about 73% of its cost, according to Remodeling magazine. Additionally they report that turning your basement into extra living space costs, on average, $40,000, with a recoup average of about 69% of your costs.
Extra Bathroom – Adding an additional bathroom is very effective way to add home value. At an average cost of $14,200, a new full bath can recoup 81% of its total cost!
Deck – Adding a deck is another very cost effective home improvement. Desks cost around $6,000 and generally recoup 75% of their value. Compared to other outdoor improvements, except painting, that is very good.
Swimming Pool – It is commonly agreed that a swimming pool adds no additional resale value to your home. Here are a few reasons why. First, they are expensive and time consuming to maintain. Second, there is often an increased fear that a pool accident may occur. So don’t add a pool for property value reasons. Just add a pool if you want to have and swim in it : )
Beautiful Gardens & Walkways – These can mean time and money to a buyer. The look nice but if the buyer is not inclined towards gardening, chances are they will not add to the offer price. The same can be said for expensive fences and stone walls, despite how nice they look buyers often will not pay extra for them.
Basic Functionality Comes First – For example a beautiful new bathroom will not override issues with a leaking roof. If you are looking to sell in the next year or so address any basic repairs needed before installing the new fountain and flower gardens you always dreamed of.