Most
appraisers have stories of homeowners irate over the fact that the special
remodeling job they performed added zero value to their home. The imported
Italian tile you used in your entryway or the pool in the backyard may be of
immense value to you while you live in the home, but unfortunately, they aren’t
items that buyers shopping in your neighborhood value.
To get the most bang for your home improvement buck, consider these 10 best home improvements:
To get the most bang for your home improvement buck, consider these 10 best home improvements:
1. Indoor Systems
Before
you consider cosmetic and even functional improvements (such as adding
additional square footage) to the home, make all needed upgrades,
repairs or replacements to the home’s major systems. Major systems include
plumbing, heating, electrical and sewer systems, among others.
Buyers want assurance that
these basic items are in working order and won’t need to be replaced or
repaired in the near future, an issue that will most likely be addressed in
the home inspection. Older
homes may require updated wiring and plumbing. An old roof should be replaced.
Address problems with heating and air-conditioning units.
2. Outdoor Replacement Projects
Replacement
projects will give you more added value than remodeling projects, according to
Remodeling Magazine. Fortunately for homeowners, these types of projects are
also the least expensive and add to the home’s curb appeal. Consider replacing
the garage door, siding, the front door and windows. The average return on investment for these
projects is almost 72 percent.
The ROI on replacing garage doors, siding, front
doors and windows is almost 72%!
The
magazine suggests fiber-cement or foam-backed vinyl siding, adding a steel
entry door, and vinyl window replacement.
3. Attic Bedroom
The
number one home improvement project as far as recouping a return on your
investment is the addition of an attic bedroom, according to Remodeling
Magazine. At a nationwide average cost of a little over $50,000, expect to recoup 72.5 percent of the cost of
adding the attic bedroom when you sell the home.
4. Add an Additional Bathroom
Over
the past few decades, the kitchen was the average home buyer's focal point when
choosing a home. In 2011 bathrooms became more important to buyers than
kitchens. That said, an additional bathroom, even
a half bathroom, adds significant value to your home, according to the experts
at the National Association of Home Builders (NAHB).
A half
bath may add up to 10.5 percent to a home’s value, while
a full bath can tack on an additional 20 percent. Of course, the amount of
additional value you will receive varies according to the home’s other
features.
In 2011
bathrooms became more important to home buyers than kitchens.
The
price of adding another bathroom to the house varies as well, depending on
region. If you live on the West Coast, plan on paying almost $50,000 for a new
bathroom, according to Remodeling Magazine. The magazine also states that, at
the sale of the home, you’ll recoup almost 67 percent of the cost of
the additional bedroom. East Coasters can plan on spending a bit less – around
$41,000, but will recoup less as well – 47.7 percent of the cost.
Tip: If
you’re on a tight budget and can’t afford a bathroom addition, give the
existing bathrooms a face-lift. A fresh coat of paint, new fixtures and new
flooring will add value and make the home show better.
5. Kitchen Improvements
Kitchens
tend to be the heart of a family home so anything you do to improve
your kitchen will add value. Again, painting the kitchen should be the
first step, whether you plan an entire remodel of the room or just a minor face-lift. Vinyl flooring tends to make the room look dated, so consider
replacing it with laminate or tile. New cabinetry, kitchen sink fixtures and
updated lighting will all add value.
Tip: Folks
on a budget can still increase value by sanding and then painting or staining
cabinetry and adding new hardware and by purchasing new (matching) appliances
and new counter tops.
6. Boost Curb Appeal
When a
TV show can be built around this one subject, it’s a pretty good indication of
its importance. Curb appeal is what beckons potential buyers into your home and
underestimating its importance to the value of a home is a big mistake many
homeowners make.
If you
have a healthy budget, and your landscaping needs extensive work, consider
hiring professionals for this home improvement project. A landscape architect
can be pricey but necessary if your yard is in desperate need of an
overhaul. According to Jeff
Mitchell with the American Society of Landscape Architects (ASLA), curb
appeal shouldn’t stop at the front yard, but should be extended to the backyard
as well.
At the
very least, clean the yard of any debris, trim trees and shrubs and spread
fresh mulch in the planting beds. A poorly maintained front yard can result in
up to a 10 percent drop in value, according to Houston appraiser Frank Lucco.
Budget curb-appeal
improving landscape projects include:
- Line the walkway with solar-powered lights. The
big home improvement stores carry a variety of inexpensive styles and all
you need to do is stick them in the ground. Not only are they functional –
lighting your way at night – but they provide ornamentation as well.
- Green up the lawn, keep it mowed and edged and
reseed bare spots.
- Add color to the planting beds. Be
careful to keep your color choices aligned with the home’s architecture.
In other words, don’t add cottage garden-type flowers to a bed in front of
a starkly modern home. Certain plants are grown because of their
interesting and colorful foliage, such as hosta and coleus, and are better
suited to more modern homes. If you have questions about what to plant,
consult with the experts at your local nursery.
- Plant a tree. Yes, it
sounds like an Arbor Day slogan, but planting a tree in your front yard
pays off by helping cut energy costs in the summer (if strategically
located to shade the house) and by adding value to the home. Not sure
which tree to plant? Use the fun National Tree Benefit calculator
to assist you with making the right choice. Just enter your zip code and
the calculator will bring up a list of trees suited to your region and let
you know the benefits of each.
7. Refurbish the Basement
Converting
the basement into a finished room adds usable square footage to the home. Finishing
basements is one of the best ways to increase your home’s value as it
transforms unfinished basements – glorified storage space – into a usable,
attractive room.
Consider
the following basement bar. Who wouldn’t be willing to splash
out thousands for the privilege of owning something like that?
Here is
a short list of rooms your basement can become – and accoutrements to put
inside it – if you choose to renovate it:
- Sports
den – Big screen TV, sports memorabilia, overstuffed couches and cushy
carpeting
- Lounge
– Pool table, wet bar, dark hardwood floors and a poker table
- Children’s
play area – Playset, soft furniture like beanbag chairs, arts and crafts
table and bins and shelves for toys and books
8. Additional Storage
Most
new homes come equipped with lots of storage. Older homes, on the other
hand, tend to lack even some of the basic storage options, such as a coat or
linen closet. If you lack the space to expand closets or other storage
spaces or build new ones, consider redesigning the spaces you do have.
There
are specialty stores now dedicated to nothing but storage solutions.
Do-it-yourself projects may include adding a complete closet system or adding
organization details to a pantry.
9. Additional Square
Footage
Every 1,000 square feet added to a home raises
the value by more than 3.3 percent, according to a 2003
study for the National Association of Realtors®.
While
that percentage doesn’t sound significant, when you put it into numbers it
makes a lot more sense. For instance, if your home is valued at $200,000, a 3.3
percent increase adds an additional $6,600 to the value.
Additionally,
the 3.3 percent statistic can most likely be adjusted upward based on the age
of the study. The study also claims that each additional bedroom adds 4 percent
to the value of the home.
Each additional bedroom adds 4% to the value of the home.
Each additional bedroom adds 4% to the value of the home.
If your
laundry is located in the basement, the value of your home decreases by two percent, so
if you plan on adding square footage to the home, build a laundry room on one
of the upper floors.
10. Miscellaneous Home Improvements
There
are many small items you can add to the home that buyers will perceive as
adding value. Some of these include:
- Alarm
systems
- Water
filtration system
- Luxury
touches such as an upgraded dishwasher, whirlpool bathtub and built-in
wine coolers may peak the buyer’s interest. Luxury homeowners can take
this a step further by adding an in-home theater and additional spa-like
features to the bathrooms.
Caveat – Invest in Home Improvements Wisely. One of
the most important things to keep in mind when considering any home improvement
project is to not go overboard. The value of your home is partially determined
by the value of your neighbor’s homes, so don’t make improvements that bring
your home’s value significantly over the general value of other homes in your
neighborhood.
Source: Shannon O'Brien - RealEstate.com
Call
me at (970) 217-3245 to find out how I can sell your home for more money, less
hassle, and sell it faster.
If you have any real estate questions, then do not hesitate to
send me an email at paul@ross-homes-noco.com
Best Regards,
Paul Martin Ross
Website: www.ross-homes-noco.com
Phone: (970) 217-3245
Not
intended to solicit any properties already listed for sale with another real
estate agent. If your home is already for sale, then please disregard this
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