One of the biggest motivators to taking on home improvement projects is how it will affect the resale value of your home. Return on investment is a great rationalizer when debating on which projects are the best to undertake. Here are a few tips to remember when thinking of renovating your space:
1. Keep up with the neighborhood – When assessing how much to spend on your upgrades, make sure you’re not going above the local market value of homes. For example, if the average home value in your area is $200,000, you would be out-pricing your home by investing $50,000 into a new kitchen remodel. A good rule of thumb is to budget no more than 20% of the value of your home to a renovation.
2. Remodel for yourself first – Return on your investment is important, but remodeling for the sake of selling your home at a higher price may not always work out. While a newly renovated kitchen may seem like a good selling point, if it is not exactly what the buyer wanted they may not be as inclined to pay more for your home as they would a property they could upgrade themselves.
3. Is it necessary? – It is important to not go overboard. If your kitchen or bath are in good working shape, sometimes a few touchups may work in your favor. Upgrades to fixtures and appliances and new paint can make the room feel like new without having to gut it and start fresh.
4. Curb appeal – The first thing any prospective buyer will take into account is the exterior of your home. The exterior can make or break your chances of selling your property so take extra care in upkeep and renovation projects. In most areas, a brick paver patio or deck installation bring upwards of an 80% return on investment.
A landscaping upgrade, like a DIY paver project, can do wonders for your home’s curb appeal and most importantly, it’s value. While kitchen and bath upgrades always top the highest return on investment, exterior conditions are a top priority for home buyers. From fresh paint to pulling weeds to installing a brick patio or fire pit, prospective buyers are generally more likely to follow through with seeing the interior of your home if the exterior is up to shape. Investing your time and budget into sprucing up your facade can pay huge dividends when selling your home.