When purchasing an older home, it can be difficult to know which renovations will and won’t add value to your property. Maybe you’ve had your home for years and want to spruce it up a bit, or maybe you’re about to purchase that fixer-upper project you’ve been contemplating. Whichever option you’re pursuing, there are subtle differences that will have a bigger impact on your wallet and the value of your long term investment. Here are three remodeling options that will add more value to your home and three you should hold off on.
Minor Bathroom Remodel
In most cases, a minor bathroom remodel can create an abundance of returns. Replacing the sink, tub, floor, toilet, vanity, and fixtures can cost around $10,000, but it could also result in a recoup rate of as much as 102 percent. If that’s still too costly, you could reglaze the tub for a better finish or retile the shower. A little bit of new porcelain or linoleum might be all it takes to upscale your real estate!
Minor Kitchen Remodel
One of the most remodeled rooms in a home is the kitchen. When purchasing an old home, many envision replacing the cabinets or countertops. But it actually takes a little less than you might think to get your kitchen in tip-top shape. By simply refacing the cabinets and drawers, you might be welcoming a 98 percent return.
Redoing the landscape is always a good plan if you’re looking to increase value. The average return for landscaping is 100%. For as little as $3,000 (or less), you could reimagine your whole front lawn or back garden. Replanting and weeding won’t break the bank and will give you an absolute return.
Now for the options, you may want to reconsider.
Master Suite Addition
While a private bathroom and a large bedroom may sound appealing, a master addition is a luxury you might want to think twice about. A midrange master suite is extremely costly and never guarantees a significant increase in the value of your home
Major Kitchen Remodel
As mentioned previously, minor renovations may be all that you need to transform your kitchen into something beautiful for the next buyer. Flipping your outdated cabinets and floors completely could put you in a sinkhole of nearly $70,000 on average. Stick with the basics, especially when facing a reimagining of your kitchen or bathroom.
Bringing in a new bathroom could quickly turn into a six figure cost if you’re not careful. Research shows that adding a new bathroom delivers a poor return of only half. Not to mention that homeowners were overall less satisfied with this type of remodel when selling their home.
You know your home better than the next person, but consider how much or how little you would prefer if you were in the process of buying a new home. The suggested smaller renovations listed will increase the value of your home and cost much less than major remodels. The less you need to pay in giving your real estate a makeover, the more you will save, and the better the payoff. Many buyers love the charm of a home that doesn’t have the latest technology or automatic everything. Not to mention, they’ll be saving money too. Explore the less invasive options when it comes to remodeling your home and indulge in a more effective return!