Contrary to popular belief, not every home improvement project is valuable to your home’s resale. Understanding where to invest in home improvement projects and where to avoid spending is important to maximizing the value of your home, especially if that is one of your primary goals in home improvement.
Take a look at some of the best ways to spend your home improvement budget to increase your home’s resale amount.
More bathrooms. The National Association of Home Builders reports that adding just another half bathroom can add as much as 10.5 percent to the value of the home. A full bathroom? As much as 20 percent. Buyers are becoming increasingly concerned with the number of bathrooms they are purchasing, along with bedrooms. In some regions, you can recoup up to 67 percent of what you spend to add the new bathroom.
Better kitchens. In the past decade, the kitchen has transformed from a one-purpose room to the household hub. Any improvements that you make to your kitchen will add to the value of your home, even if all you do is give it a fresh coat of paint. Cabinetry, lighting, and hardware will also add a lot of value.
Curb appeal. Consider hiring a landscape architect to work on your yard to make it look as attractive from the outside as possible. If you are planning to sell your home, you should make sure you pay attention to both the front and backyard. The importance of making a good first impression applies here, as some appraisers estimate a poorly maintained yard can decrease home value by 10 percent!
Essential systems. Outdated plumbing, heating, sewer, and electrical can be a major deal breaker when it comes to selling your home. These basic necessities may not be much to look at, but they certainly influence a buyer’s decision. When it comes to a home, form truly follows function—nobody wants to deal with the nightmare of major infrastructure problems. Pay attention to any issues in these areas that could affect future buyers negatively.
- Bonus: The improvements will help you live more comfortably and lower utility bills during the time that you live in the home as well.
A finished basement. Transforming your basement square footage into livable space is a smart way to increase its value without the expense of adding on. You can transform it into an extra living area, more bedrooms, or even a children’s play area. Even if you only convert part of your basement into a living area, you are adding to its value and your own enjoyment of the home.
- Important: Whether you finish your basement or not, be sure you have a properly maintained sump pump along with a battery backup. These two essential appliances insure against devastating water damage in the event of a flood.
Additional space. For every 1,000 square feet you add to your home, the value goes up an approximate 3.3 percent. When that extra square footage comes in the form of another bedroom, that value goes up to 4 percent, and we’ve already covered the added value of bathrooms. Another good option if you want to add some square footage is to add a first-floor laundry room (opposed to one in the basement). Having one that takes stairs to access decreases a home’s value by 2 percent!
Miscellaneous fix-ups. You do not need to take on large-scale, expensive projects to raise the value of your home. Other modifications like more storage options, alarm systems, built-in wine coolers, home theater systems, and spa-like bathroom features can elevate the sophistication and value of your home.
As with all investments, carefully weigh any home improvement projects before starting them. Decide what matters most to you while you live there and what will give you the best return when the time comes to sell the home.