Are you considering home renovation plans in this new year? If so, now could be a great time to think about what home renovations will pay off down the road should you ever put your home on the market.
The potential resale value of a home is often overlooked during the renovation process, but it’s an important factor to take into consideration. Certain projects carry a higher return on investment than others. To help with this decision, you’ll want to start by making a priority list that will maximize your current budget and expand your future wealth.
Here are a few of the top home renovation projects that will pay off in the future.
Kitchen Remodel – Desirable kitchens can have a major impact on buyers in the real estate market. It’s important to remember this when making upgrades to your current kitchen. Certain features and trends might be beneficial to your current style and life, but down the road, they could become outdated. Opting for a more traditional kitchen style can help create long-lasting value.
The cost of a kitchen remodel can quickly add up, making it one of the most expensive improvements a homeowner can make. Allocating a proper budget is important but not always feasible. No matter what budget you’re working with, options are available. Researching home equity loan requirements or current personal loan rates can help you secure the financing you need to complete your kitchen renovation.
Bathroom Renovation – Whether you’re thinking of making a large-scale upgrade or just a few minor updates, bathroom remodels are almost always worth the investment. Particularly for homebuyers who are looking for move-in ready homes. New plumbing, updated fixtures, or a fresh coat of paint can go a long way.
You may also want to consider incorporating more eco-friendly options into your bathroom design. Systems that conserve water or energy-efficient lighting fixtures can also add to your home’s value. For those currently in the housing market, energy-efficient upgrades are ranked as a significant influence in their purchasing decision. As a bonus, it can also help you save on your current bills each month.
Room Addition – If you have the space and budget available, an addition can add significant value to your home. Currently, homebuyers are looking for spaces that can accommodate their unique needs. As we all spend more time living, working, and learning inside of our homes with the ongoing pandemic, more square footage is needed.
A home addition can help find you that extra space you may need to accommodate all of your family’s needs. If you’re currently working from home or if your children are learning virtually, an office space can be useful for the whole family to use. This space can also be beneficial for other activities like a home gym or art studio. One of the best parts of room addition is that it may qualify as another bedroom in the listing of your home when you go to sell it, therefore increasing your home’s value.
Window Upgrades – Replacing old windows in your home is a smart investment for many reasons. Efficient windows prevent cold air from getting in, which can help reduce your heating costs during long winter months. Windows that are sufficiently sealed can also prevent water from getting in and damaging wood or causing mold to grow. For the financial benefits that window upgrades can have, it makes the investment well worth it.
Many homeowners neglect the condition of their current windows for far too long. The problem with this occurs during the home inspection phase of selling. Should an inspector notify you that the windows need to be replaced, this can be a significant expense to incur. Staying on top of your home’s maintenance now can prevent you from larger financial issues and delayed closings down the road.
Replacing Doors – The entrance to your home is the first thing someone will see when they arrive at your house. Having a strong entryway creates a welcoming environment – a feature that is attractive to potential homebuyers. Though it may seem like a simple fix, painting your old door or replacing it completely can drastically change the appearance of your home. Researching colors and the direction in which your home faces the sun can help you choose a door that is both appealing and well protected against harsh solar rays.
The right door can recoup a significant percentage of the value you invest in replacing it. Because of this, you may also want to consider other important doors on your home’s exterior such as garage and shed doors.
While all of these improvements can add satisfaction to your existing lifestyle, it’s wise to consider how they will affect the future value of your home. If you’re considering a potential home improvement project and want to know what the future return on investment will be, talking with local real estate professionals can help you make the right decisions.