How to Add Value to Your Home Through Renovations

One way to increase your home’s value is to renovate it. However, not all renovations are equal. Some can cost a lot of money and still won’t increase the home’s value, while others can cost much less and do wonders in terms of value. This means that you need to recognize which renovations will be most beneficial and list priorities for what you need to do with your property. 

As a real estate investor or landowner who rents the property, you know high-value properties attract buyers or tenants much more quickly. So, if you are asking how to increase the value of your home when you’re willing to renovate it, read on to find some practical tips about the right way that will lead to success.

Kitchen Renovations

The kitchen is one of the most popular rooms in a house that potential buyers consider when deciding whether to buy, and the main room that potential tenants check out. Hence, the kitchen is an excellent place to start renovating. Kitchen renovations are rather popular home upgrades, mainly if you replace the appliances that are wasting too much energy with energy-efficient ones. 

Another upgrade you can do is change the cabinet doors, for example, but it will only add 2-3% of the value of your home because it is considered decorating. If you do a complete overhaul with new appliances and worktops, it could lead to up to a 10% increase in the value of your home, which in numbers is around $25,000 on a $250,000 house.

Bathroom Renovation

Bathroom renovations also have a great return on investment, especially when the bathroom furniture is outdated or damaged. Bathroom upgrades can add up to 4% to the value of your home and on a fantastic return of 67%. They are much more desired in rental units, especially in vacation rental housing properties, and add up to 11% to the rental value because guests are looking for spa-like bathroom conditions.

Eco-friendly upgrades

Eco-friendliness and sustainability are significant trends quickly emerging and spreading in the real estate market. The newer generations of real estate buyers and renters ask for eco-friendly living conditions to help them leave a greener environmental footprint. For that purpose, eco-friendly upgrades during renovation projects are highly appreciated. For example, upgrades such as new boilers, energy-efficient lighting, and solar panels are excellent; the value goes far beyond the current value. 

Moreover, if you sell the home with the new eco-friendly upgrades, including new windows and doors, you can increase the value of your home up to $20,000 on a $250,000 home.

Smart Home Technology

Another rising trend in real estate is integrating smart home technology into the home, especially to control the HVAC systems. This feature is desirable because it is worth it long-term, especially for holiday cottages that offer guests luxury features and charge up to 10% more. This technology is relatively expensive initially because the initial costs are around $10,000. 

Landscaping

Landscaping or improving the curb appeal of the home’s exterior is also part of the renovation project that can hugely influence the home’s value. Among the improvements that increase the value are lawn care, maintenance of gardens and flower beds with mulching, and designing and maintaining walkways and driveways along with patio decks and retaining walls. Adding outdoor living spaces is also quite popular, and outdoor kitchens are a luxury feature that appeals to many buyers, together with fire pits and fireplaces. Swimming pools and hot tubs are the luxury features and upgrades you can add.

Conclusion

The more quality and appeal your house has, the more it will interest buyers, but to increase its value, it needs to be renovated strategically. Only then will you be able to get a positive return on investment. When creating such a strategy, you need to ensure that the pricing for your improvements matches the price of your home, and you won’t end up spending a lot of money that you won’t get back. 

You can always talk to professionals to guide you through some complexities, such as real estate agents or property managers, who can even connect you to contractors with whom you can make great deals. The main point is to prioritize the renovations and upgrades and ensure the value will increase afterward.

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