Improved function and increase value are two reasons many homeowners turn to home renovations to update their homes. However, many want to avoid pouring too much money into their home without getting the best investment return. Understandably, it's vital to get the most bang for your buck when it comes to renovations.
So, whether you want to increase your home's value, make it more comfortable, or add a touch of style, the right renovation project can make a huge difference in your home's look, feel, and overall value. Here are some projects you can add (and tick off) to your list to make the most of your home renovation budget.
Turning Your Home Into an Asset
An asset should be able to put more money into your home instead of taking money away. Being strategic with careful research and planning can help maximize your renovation budget. The key is to find spaces in your home where you can improve functionality, energy efficiency, and style without breaking the bank. Here are a few great ways to add value to your home:
Kitchen Renovation
A kitchen renovation is one of the most popular and beneficial home renovations. Adding new cabinets, countertops, or appliances can elevate your kitchen's overall function and aesthetics. For the most part, it gives your home a modern vibe, enough to get a prospect's attention if your home is up for resale. Some experts say that a kitchen renovation, especially when sinks and countertops are included, can increase home value as much as 20%. Others say that at the very least, you can expect to recoup a good percentage of whatever you spent on your kitchen reno.
Bathroom Renovation
A bathroom renovation is another excellent way to add value to your home. For the most part, an up-to-date bathroom can make all the difference in a potential buyer's decision. Bathrooms with new fixtures, tiles, and shower installations could command better resale prices than those with outdated ones. Adding a simple coat of paint or a new shower head will make a good start if you're tight on budget. If you have a bit more to spend, you can of course go for a complete bathroom makeover or master bath remodel. Even a small bathroom renovation is going to add value to your home overall. In fact, in Canada it’s not uncommon for a bathroom renovation to increase home value as much as 10%.
Basement Renovation
Next on the list of renovations that will likely add value to your home is a basement reno, especially if you are adding a basement and/or bathroom. If your basement is spacious enough and suitable, you can create a brand new living area or in-law suite, and that extra space is bound to be an eye catcher for potential buyers. Basement renovations can be tricky as there are plenty of codes to abide by, especially with regard to materials currently used in the basement. So it might be best to go directly to a professional contractor for advice before embarking on it.
Landscaping and patio renovation
Undoubtedly, an attractive outdoor space is a great selling point for any home. Adding a new deck, patio, or gazebo can increase your backyard's appeal among potential buyers. If a bit of greenery is what you are after, then landscaping projects such as planting trees and shrubs or adding flowers will undoubtedly enhance your home's value. Depending on the material used, a new deck will raise the value of your home up to 80% of what you spent.
Updating Siding, Windows & Doors
Siding, windows, and doors are crucial in keeping your home's temperature regulated and energy efficient. Older models made of aluminum or wood are less efficient than today's options. Updating these features with materials made of fiberglass or vinyl could increase your home's value while providing more insulation and airtightness. So, reselling your home in the future gives the buyer good reasons to buy and save more on electric costs.
Now the “don’ts” - renovations destined for a smaller ROI
While particular home renovations can increase your home's value, there are also ones to avoid, as these could cost you more money. Or, in most cases, it's a renovation that may not give you the best return on your investment. Here are some of the upgrades you can put aside to your list of "don'ts":
Adding a Pool
Although it could be a great addition to your home, installing an in-ground pool is likely to decrease your home's value more than it increases it. Pools can be costly and may not appeal to a broader demographic of potential buyers who are leery of the maintenance costs of an in-ground swimming pool. So don’t let the kids sway you too much. Take a realistic look at the likely ROI before jumping into that pool installation.
Customized luxury finishes
Although aesthetics are essential, customized luxury finishes, such as stainless steel countertops or luxury hardwood throughout the home, may not provide the most practical renovation for your investment. Buyers will appreciate quality finishes and details, but more budget-friendly materials that require less maintenance could be a better option.
Over-the-top home theaters
This costly home renovation will not only take a lot of money to install, but they are unlikely to be a top priority for potential buyers. When renovating, a good rule of thumb is to keep your improvements practical and in line with the value of other homes in your area.
Home office conversions
With the rise of remote work, many homeowners are converting spare rooms into home offices. However, this may add little value to your home, especially if the room cannot easily be converted into a bedroom or other living space. Moreover, this can limit your home’s attractiveness to more practical families who are looking to make the most of every square footage of their space.
Built-in aquariums
Customized aquariums are another feature you should tick off your renovation list if you want to attract practical buyers. A built-in aquarium may be a great addition to your home, but it will not add value and could cost you in the long run. Most home buyers will find this addition to add to their maintenance costs in the long run, making it an unattractive feature.
Converting the garage
Removing a garage to create more living space may be convenient for the current homeowner, but it can be a turn-off for potential buyers who value a garage for storage or as a place to park their cars. Be mindful of the current needs and wants of potential buyers since this can influence the value of your home in the future.
Highly customized flooring
Unique flooring options like brightly colored carpet or intricate tile designs may appeal to some homeowners. Still, they can be a turn-off for others who prefer more neutral or traditional flooring options. If you need to change your flooring, use more standard and modest options like hardwood or laminate.
The Bottom Line
No matter what renovations you choose to make to your home, make sure they are practical and will add value in the long run. Make sure to ask around and do your research before making any significant investments, so you know what kind of renovations will add the most value to your home. By being mindful of the upgrades you make, you can ensure that your efforts will pay off in the future when it comes time to sell your home.
