With sellers cutting prices the housing market is tipping back to being a buyer’s market. As such, homeowners seeking to sell their home are looking for any edge to make it more attractive to potential buyers.
While many homeowners may consider a renovation as a means to upping the value of their home, and while a renovation can indeed make a big impact on a home’s value, it is important to think twice before jumping forward with any big project. That is because dishing out lots of money on a renovation is not guaranteed to automatically up the value of a home.
To get a strong return on investment, the renovation project needs to be carefully selected as some projects are much more likely to payoff than others. In 2018, on average the most homeowners can expect to recoup is about 56% of what they spent on renovations.
In many instances, curb appeal projects such as improving landscaping or installing a new front door or garage door may lead to much higher returns than other more complex renovations, such as building a backyard patio or transforming the garage into an additional bedroom.
Making the house look fresh and new on the inside by updating countertops or adding a fresh coat of paint can also go along way in the eyes of potential buyers. Experts also recommend that renovations should be done with an eye towards making the design appealing to as many people as possible by avoiding unusual, eccentric or specific looks that may turn off some buyers.
When it comes to larger renovations, the ones that may be the most worthwhile are bathroom and kitchen remodels. Over the years bathrooms have acquired an elevated status and they are the crowning glory of many esteemed homes. Some luxurious amenities like heated floors or a jacuzzi bath may give sellers a competitive edge, but even smaller projects like painting the vanity, installing a new sink or putting in new lights can appeal to buyers. Nowadays, small and simply functional bathrooms will not cut it, so homeowners who lack more spacious and comfortable spaces may be wise to spend money upgrading the bathroom.
Likewise, many buyers are seeking more than merely functional kitchens. High-end appliances, marble countertops, natural light, generous storage space and other attractive features are a must for some buyers. A minor renovation on a kitchen will recoup 80 percent of its cost, according to Remodeling Magazine, while a major mid-range kitchen remodel has a 65 percent return on investment.
When it comes to renovating bathrooms and kitchens it is always crucial to work with trusted and reputable contractors, electricians and plumbers. Otherwise, what should be a straightforward renovation intended to increase a home’s value could warp into a money sucking disaster, according to experts at Absolute Plumbing and Drain.