People tend to invest their tax returns, savings, etc. back into their homes in order to improve the value. The endgame for some is it to sell the house. There are no surefire ways of maximizing the ROI of your home but few tips and tricks might just do the trick.
- Check to see if your home IS actually lacking in some fashion compared to current standards of housing. If there’s nothing, then it’s probably best to leave it. Renovations don’t necessarily mean “enhanced value”. Consider adding another half or a full bath to a house, say, with 3 bedrooms and a bath. That is bound to give you good value for the money. Now, if you have a 3 bedroom coupled with a 1.5 bath home and a basement which needs work, adding a legal escape window, a bedroom and a full bath downstairs makes complete sense.
- Statistically, one of the bestselling features of a home is its remodeled kitchen. Remodeled kitchens do not have to be fancy. Most of the time, even if they are painted in calming blues, greys or greens they serve right up the customers’ alley.
- As a homeowner, it is advisable to spend money into the top of the line appliances. Many people who are home shopping or are in the process of buying a house, will fall head over heels in love with the place. Above all, it will add to the total value of your estate. Heck, good pipes and bathtubs are a huge deal for people. So maybe look into that as well.
- When renovating with the intent of reselling a house, tearing down paneling and plaster is a good way to go about it. Once that’s done, replace and update the wiring therein (inside the walls) such as with low-voltage wiring. While you are at it, spray-foam to insulate the whole thing. Lastly, drywall. Then when you go on to sell the house, you will have higher estate value as opposed to before. Spray-foam insulation will save you a fortune in terms of heating/cooling costs.
- Having extra land helps like half an acre or more for engaging in something fun and make it lucrative to a future buyer. Is it a bike garage/workshop/craft shed/gym you want? Finally, ROI has largely to do with your happiness and cannot be solely based on what value the households for future buyers. What counts is how functional or joyous your home is, to you.
Not all home improvement projects pay off. This needs to be borne in mind at all times. Again, for some, it’s about making it more marketable whereas for others, it’s more about comfort for themselves. Regardless, $X spent improving the home only guarantees an $X increment, at best and not higher.
Ideally, if it’s just home repairs do them yourself and do not contract the work. It will usually yield a net positive ROI.