Thousands of home owners make the leap into home remodeling and renovations every year. Not every homeowner takes their decision a step farther, and evaluates the return on their investment. If you’re one of those fiscally conscious home owners trying to decide where to put your home improvement dollars to best use, we’ve compiled a list of the top home improvement project that can get you more than a 90% return (on average) on your investment at resale.
Renovating or updating your kitchen is dollars well spent from a home equity stand point. How much you should do is open to interpretation, however. If you are updating your kitchen to sell your home, make sure you don’t put more money in than you’ll get out of the project. Make updates that are appropriate for your neighborhood so you can avoid the pain of losing thousands of dollars because you put in high end counter tops and floors. If you are planning on staying in your home, update your kitchen to your preferences—just be aware that not all of your $75,000 investment may translate into home equity (dependent on your area).
Once you’ve done your research, plan and design your kitchen accordingly. Replace cabinets that aren’t functional, update your counter tops, and add a back splash to give your kitchen a cohesive look. If your flooring is “so 20 years ago,” have a timeless option installed or install one these DIY flooring options yourself.
“Kitchens and bathrooms sell homes” is the common saying. It applies to real estate transactions and home equity. If you have a bathroom with broken tiles, worn cabinets and disgusting flooring, roll up your sleeves (or hire someone to dig up their sleeves) and give your bathroom a complete face lift. Your labor does pay off, as long as you are smart about the amount you invest in your bathroom remodel.
Any time you add square footage to your home, you’ll see an increase in square footage. If you’re thinking of adding that square footage in your basement, make sure you repair all water issues to reduce your chance of damage from flooding or water leaks. When finishing your basement, remember that you need to be more selective choosing your flooring than in other rooms. Wood is not recommended because your slab is porous; we’ve given you a complete list of other stylish options in our recent blog post.
For a good investment, turn your attic into a bedroom or master bed and bath. A finished attic bedroom gets you the best return on your investment. If you’re considering including a master bathroom to your plan, contact a plumber for a project quote; adding plumbing can be a significant investment and can reduce the return on your investment from a home equity stand point.
If you’re looking for other ways to increase your home equity, consider building a deck or installing a patio; both projects add some value to your home. Even adding wood floors to your home can give you an uptick in your value. If you’re considering wood floors, make sure you do your research to find out if wood floors what to expect from your new floors and contact experts for information and pricing. A little expert help can make you look like an expert when you assess your new increased home value.