Which Home Renovations Give You the Most Back?
Homeowners often want to know what will give them the biggest bang for their buck in terms of home renovations and improvement projects. The Real Estate Appraisal community have always kept a close eye on which home remodeling projects generate the highest returns on investment (ROI). Most Real Estate Appraisers agree that kitchen renovations provide the best (ROI).
Which renovations generate the highest ROI?
Kitchen remodels return around (70%) return on money spent
Kitchen remodels provide the highest Return on Investment (ROI). Kitchens are so visible that they have immediate impact on buyers. Kitchens are one of the highest focal points in most homes. Remodeling a kitchen is recommended if they seem dated.
Buyers tend to spend more for a home with upgraded appliances, granite or solid surface countertops, and wood or engineered laminate floors in a remodeled kitchen. Homes with that do not have remodeled kitchens are not the first choice to sell.
Homes with Kitchens that have been remodeled are in much more demand in the Utah communities. Kitchens return nearly dollar for dollar spent on the remodeling.
Bathroom remodels return around (9%) return on money spent
It seems that if a bathroom or kitchen has been updated, the house sells faster. Those are the two most expensive rooms in a house to remodel.
An average bathroom remodel will cost between $12,000 and $15,000, and there is an estimated 25% to 30% increase noted in market value.
If your finish off or remodel your Basement expect to add a big (7%) return on money spent
In some areas an inexpensive finish of their basement could net you the biggest bang for their buck. If you only have 1 or 2 bedrooms on the main floor and up adding more bedroom can pay off. If your home has 4 plus bedrooms already adding additional bedrooms in the basement is not going to add much to the value.
That Big Home Addition Typically will add around (3.5%) return on money spent
You will be better off finding room to add a second bathroom in a 3- or 4-bedroom single family home than adding a whole new wing to your home.
Energy efficient improvements may get you an extra (3.5%) return on money spent
There are so many choices to make a home more energy efficient. Many times, these are something that a new homeowner could do themselves.
Landscaping may bring as much as a (2%) return on money spent
Landscaping could be a simple, inexpensive way for homeowners to improve the exterior look of their home and make give it more curb appeal attracting more buyers.
Other home renovations that deliver high returns
There are many other home renovations that are having the high Returns on Investment that include:
• De-cluttering/cleaning and cosmetic improvements
• New updated interior paint or carpet
More Things to Take into Consideration
Most older homes are renovated now before they are sold, so buyers have come to expect that. Many areas of the country Real Estate Brokers are offering no interest loans to renovate homes, to be paid back at closing, if allowed to list the property after renovation. There are always investors who are willing to buy homes for cash at a discount only to resell after they are remodeled or updated.
In the remodeled houses, most of the people who buy houses like the tops of the line kitchen and bathroom cabinets and of course granite or quartz countertops. Both kitchen and bath remodels seem to receive the greatest attention. However, no matter how much is spent, there is never a dollar for dollar return.