While most homeowners decide to renovate their home in order to make it more comfortable and to better meet their needs, they generally also want to eventually see a return on their investment. However, all renovations are not created equal and if you’re not careful, you may not see the return that you’re hoping for. In this week’s blog, learn more about how to plan your renovations to maximize your home value and which renovations are the most cost-efficient.
Don’t over-renovate for your neighborhood
The most important consideration when it comes to home renovations is neighborhood values. Let’s say you live in a neighborhood with modest homes that sell for an average of $200,000. You purchased your home for $180,000 and you have decided that you want to improve your kitchen. It might not make sense to pour $50,000 into that one renovation because you probably won’t be able to sell your home for more than $230,000. A great way to decide how modest your renovations should be is to visit a few open-houses in your neighborhood to get a sense for how others have redone their homes.
When it comes to home renovations, the kitchen is king. This isn’t surprising considering the fact that the kitchen is the heart of the home and so many buyers will be swayed by the state of the kitchen. When thinking about ROI, it’s wise to avoid investing in renovations that are too trendy and will look dated with time. Instead, focus on timeless updates such as upgraded flooring and modern countertops.
Small improvements to your bathroom can make a big impact, but it’s important not to go too crazy to see the best return. Instead, focusing on small but impactful upgrades such as new light fixtures, molding, and paint can bring your bathroom into the 21st century without requiring a huge investment of time or money.
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