5 Renovation Projects That Increase Your Home’s Value
What renovations can individual homeowners do to improve the value of their home? There are great options on almost any budget that not only increase a home’s resale value, but improve the quality of life for its owner in the meantime.
If you have $1,000: Replace your front door
Replacing your old wooden front door with a 20-gauge steel door will not only make it more resistant to damage, but it will also return 101% of your investment in the Atlanta area when you sell your home.
If you have $5,000: Build a Deck
Starting at just $15 per square foot, decks add a lot of living space, especially in warmer climates. While this project only returns about 70% of your investment at resale, if you aren’t planning to sell for another few years, a deck can provide a significant quality of life improvement in the interim.
If you have $10,000: Remodel Your Bathroom
Remodeling a bathroom returns 102% of the money you put into it on average at resale. Replacing the tub, tile, vanity, and fixtures in this high-value area to buyers can do a lot to make your home more attractive. Even better – you can do a lot of the work yourself and reap an even higher return at sale. As HGTV puts it: “If you can pipe a child’s name on a birthday cake, you can re-caulk a tub.”
If you have $20,000: Remodel Your Kitchen
In most major markets, an investment of $15,000 – 20,000 in a kitchen update can return more than 100% of the investment upon resale. So what should be updated? Exactly what you expect: commercial appliances, stone countertops, and all-wood cabinets make the kitchen pop to potential buyers (and make the chef in your house really happy in the meantime).
If you have $40,000: Add A Bathroom
Depending on who you ask, adding a bathroom can add anywhere between 8 – 20% to the resale price of your home. This is especially true for homes that have significantly more bedrooms than bathrooms (we’re looking at you, 5 bed/1.5 bath houses). Although not cheap, adding a bathroom can easily pay for itself when it comes time to sell – and eliminate arguments among the kids about who gets the bathroom first at bedtime.
While all these projects can pay dividends at sale time, remember to not price yourself out of your market. If the average home in your neighborhood is selling for $300,000, investing $100,000 in a top of the line kitchen probably won’t pay off at sale because both buyers and appraisers use neighborhood comps to determine the value of the home. Equally as important, invest in basic maintenance projects before all else – your bathroom upgrade isn’t going to matter if your A/C unit isn’t working.
At the end of the day, if you aren’t looking to sell immediately, invest in projects that will improve your quality of life before worrying too much about the future resale value of your home.