What Renovations Increase Home Value the Most?
As a homeowner, it’s your responsibility to take care of your residential property. This includes addressing necessary repairs, such as fixing a leaky faucet, replacing a rusty roof, repainting the interior and exterior walls, changing chipped floor tiles, and so on.
Aside from addressing needed repairs, you also have to ensure your house’s safety, such as considering fire-rated glazing systems for added fire protection. These are all standard maintenance tasks you should always be doing on your property.
However, when you’re planning on selling your property, it’s even more important to get your property in ship-shape and ready for a sale. The more eye-pleasing your house is, the faster it will be sold and at a higher price, to boot.
Knowing what kind of renovations will add value to your home can be a game-changer when it’s time to sell your residential property. Keep reading to learn what renovations increase home value the most.
What Are the Types of Home Renovations?
It’s worth knowing the different types of home renovation projects to increase the value of real estate property. Here are the four main types of home renovations that can add value.
1. Basic Home Makeover
As the term suggests, this refers to the fundamental repairs and replacements of any damaged parts of the house. It can include all manner of things, including:
- Repairing a leaky faucet
- Repainting faded walls
- Replacing a chipped floor tile
- Fixing the gutters or roof
- Ensuring that the house’s HVAC (Heating, Ventilation, and Air Conditioning) system is running
2. Curb Appeal Improvements
You should know not to always “judge a book by its cover.” However, it’s safe to say that this adage is vital when it comes to selling a property. After all, the curb is the first thing people notice about your home when viewing online or in person. The curb appeal significantly affects a buyer’s overall impression of your home.
This is why homeowners should make an extra effort to enhance their property’s curb appeal. This includes renovation work such as:
- Repainting the house’s exterior
- Freshly mowing the lawn area
- Landscaping the front and back yard
- Replacing outdoor fixtures (like LED lighting, address numbers, mailbox, etc.)
- Investing in smart home technology (e.g., a security door to improve home security and ensure safety against unauthorized entry, fire, and natural disasters, surveillance cameras, blinds solutions, and many others)
Speaking of doors, there are different types of security doors you can choose from. These are not your typical doors, as they are specially made to ensure that your property is safe and secured, may it be due to man-made or natural crises.
3. Value-Added Home Renovations
Real estate experts reveal the following home improvement projects with the highest ROI (Return on Investment) during a resale. Such improvements offer around 80% or more of the total costs:
- Opting for energy-saving kitchen appliances
- Kitchen and bathroom renovations
- New sidings and windows
- Deck and patio renovations
4. Personal Preference Home Improvements
These are renovations or additional projects that you want for your home, but which won’t necessarily impact resale value positively. Such renovations include things like adding various amenities, like a basketball court, hot tubs, jacuzzis, swimming pools, backyard ponds, outdoor kitchens, fireplaces, and so on.
Some people think of these improvements as too luxurious and unnecessary. They are also often high-maintenance and have potential safety hazards. Therefore, they may not lower resale value, but they may not increase it either.
That being said, these kinds of home improvements are not bad to do. After all, they can make your home more attractive to potential buyers, especially family buyers. Provided you have the budget and extra space, and if it will truly make you happy, they are important renovations to make for your own benefit.
What Renovations Increase Home Value the Most?
Home renovations are not only for fixing and repairing specific parts of the house. They can also increase your residential property’s value, so you can ask for a higher price when it is time to sell. A renovated house also adds aesthetic appeal and will attract first-time homebuyers to consider your property for sale.
It is important to note that a renovation is different from remodeling. The former focuses on repairing or restoring something. It can be anything from a leaky water pipe to a faded interior wall.
The latter, meanwhile, requires an extensive change or even tearing down a room or any part of the house. This includes a home addition or a kitchen or bathroom extension. Nonetheless, these kinds of home improvement can be worthy of your invested money and time.
When it comes to real estate property, size matters! This is also true when it comes to homes. Building a home addition can add living space for your family and value to your property. Whether it is a kitchen, bathroom, or new bedroom, it can greatly impact your property’s total value. An increase in square footage means more value to the property.
Philadelphia has properties of all sizes. From skinny, cookie-cutter row homes to small apartments, it can be challenging to find a larger space. If you travel to New Jersey, you can find Newark apartments right across the state line that are more spacious. You may be limited on the type of additions you can add when dealing with an apartment.
For homeowners that have single-family dwellings, another good addition is building a patio, porch, or deck area. You can install pressure-treated wood and add plants and safety railings for both aesthetic and safety purposes. Outdoor additions such as these can yield a 90% resale return. You also get to hang out comfortably and safely outside your home with friends and family before you sell!
Bathroom & Kitchen Renovations
The bathroom and kitchen are among the busiest parts of the house. Functionality is vital when planning for a kitchen or bathroom renovation or remodeling. A 2019 report from the National Association of the Remodeling Industry states that a kitchen makeover can recover at least half of its total costs when selling the house.
Buying new kitchen appliances and replacing the floor tiles may seem unnecessary, but it’s actually a must. Many appliances these days are more energy-efficient, which can help you save on monthly utility bills. Opt for functionality and practicality over trend (that would end up stored in your cupboard, never to see the light of day) and fixtures.
Meanwhile, bathrooms are an essential part of a house. Having small or outdated bathrooms can turn off potential buyers. So, if you are planning to sell your house, make sure to spend a little (or a lot!) on updating its fixtures and planning for a bathroom addition. You can get as much as a 102% on average on resale return.
Basement or Attic Remodel
For most homeowners, attics and basements mean cobwebs and dust-filled storage rooms. Some people even associate them with scary stuff, no thanks to horror movies! However, most homeowners don’t realize what a basement or attic remodel can do to increase their real estate property value.
A basement and attic remodeling project is a worthwhile investment for additional living space. You can convert it into a guest room or an entertainment lounge. Such significant renovations can give you around a 90% resale return.
When renovating the basement or attic, remember the following:
- Adding insulation will help lessen your utility bills
- Check with the local and national guidelines for the recommended insulation level in your area
- Install a foil vapor barrier to get rid of moisture from seeping up the ceiling
- Consider a solar attic fan or another HVAC system
- Address flooding issues in the basement by re-sloping the yard or adding drains or gutters
- Install modular subfloors on existing concrete floors
Homebuyers do not want an HVAC system that is in poor shape. They also don’t like wasting money and time on HVAC repairs when it should have been the house seller’s responsibility in the first place. Offering a home warranty to make up for the damaged system may not be attractive to the buyers either.
Otherwise known as heating, ventilation, and air conditioning, HVAC is one of your home’s most important components that should be maintained regularly. A damaged or outdated HVAC system can be a major turn-off for buyers. So, invest time and money to ensure that the HVAC system works at its best before you put your home on sale.
According to the folks over at ARS, you can easily notice HVAC system issues such as cold instead of warm air coming from your blower or ductwork. Maybe the heating and cooling bills have shot up lately or some parts of the house never seem to get warm. All these problems should be addressed before putting your house on the market.
An HVAC system maintenance usually includes:
- Replacing the air filters at least once a month; more often if you have pets at home
- Cleaning and vacuuming the vents to keep dust and dirt that can affect air circulation
- Cleaning the outside unit, ensuring that it is free of loose leaves, debris, and other outdoor elements
- Inspecting the ductwork every few years to remove any clogs and blockages
A home renovation is a massive undertaking for homeowners. It often means spending as much as thousands of dollars on it, depending on the type of makeover you are planning. Remember that your house is not just a place you go home to at the end of a busy day. It is also a place of comfort and safety for you and your loved ones.
Giving your home a makeover is your personal choice. After all, who doesn’t want to live in their dream home? You only live once, so it’s up to you to spend for home improvement, regardless of whether you settle there for good or plan to sell it after a few years.
More than aesthetic value, though, you should also consider your property’s overall safety when it comes to renovations. Address first the needed home repairs so that they won’t affect your quality of living. Most of all, you should invest in fixtures that will ensure your household and residential property’s safety and security.
Are you thinking about selling a house in Philadelphia or San Diego? At Brotherly Love Real Estate, we buy houses fast for cash. We buy properties as is for a fair price, helping you skip the long buying process and closing fees.
Contact us online today or give our team of real estate agents a call at (215) 769-9875 to learn more.