Bonus Tips for High Return on Investment
When it comes to realizing a high return on investment (ROI), quality of work and professional results are of prime importance. Other important factors include functional layouts and increased or improved livable space.
A key factor when considering what types of remodeling are more important than others is whether or not the project would boost the appraisal value of the home. Certain elements of a house are more important than others when appraising the home's worth.
Number of bedrooms, whether or not there is a fireplace, number of bathrooms, whether or not there is a formal dining room and type of house construction material are all elements that may affect the appraised worth of your home. Whereas wall color, whether or not the basement is finished off, and brand of appliances generally do not.
When considering what type of home improvement project might represent your best investment return consider the following:
- How will the project impact your home's appraised value?
- How strong is the resale market in your area?
- What is the typical neighborhood norm?
- How long do you plan on living in your home after project completion?
- What DIY skills do you have that would help save on home improvement remodeling costs and thereby increase your ROI?
Another thing to consider is that return on investment is only greater for DIY projects with professional quality workmanship.
Although options are innumerable, a great home improvement tip is to put focus on those that will net the best investment return when you are ready to sell.
Various Types of Home Remodeling Projects
Some projects fall under the category of “home maintenance repair.†These must be considered first in order to preserve the integrity of your home; to maintain a solid structure with reliable systems.
Things such as roof repair, exterior painting, furnace and major appliance maintenance, electrical maintenance and upgrades, and window repair and upgrades all represent these type home maintenance needs.
“Lifestyle projects†are those that serve a single purpose. Examples of lifestyle projects include an indoor outdoor pool, home theater, a safe room or panic room, and a home wine cellar. Elements that are perhaps of prime importance to the homeowner, but not necessarily to a buyer. Although alluring, these type projects often represent a poor expected investment return for the person preparing to sell their home.
“Neighborhood norm projects†are those considered standard for that neighborhood. Aspects of a home that buyers would normally expect for that area. Elements that if omitted, might reduce the value of the home or make it harder to sell.
For instance, a two bedroom house in a neighborhood comprised mostly of 3 bedroom homes. Or, a house with only one bathroom, in an area where most other houses have at least two. If the home owner were to add at least another ½ bathroom, the house would almost certainly sell more quickly, with a high ROI realized.
Many other types of exterior and interior remodeling projects are optional. Even projects that are purely cosmetic can yield a high return on investment ratio.
Ways to Increase the Market Value of Your Home and Increase Your Chances of Making a Quick Sale:
- For the most part, keep room dècor subtle and neutral; use select accessories to add color and pizzazz. The exceptions are dens and dining rooms - which can have more vibrant colors and more accessories.
- Keep room dècor uncluttered, with clean lines.
- When updating the bathroom, consider this; cast iron bathtubs can cost over $600. Steel tubs that look like cast iron and function about the same can cost less than $300.
- Installing a stone counter can increase the value of your home. If you want to save on the expense, install natural stone cut into 10 to 12-inch squares. Use grout in between tiles as you would when installing ceramic tiles. In addition to costing less than solid stone, individual squares can be replaced when damaged - instead of the whole counter.
- For the most part, moderate bathroom and kitchen renovations reap a higher ROI than more upscale remodels. The exception being if you live in an upscale neighborhood.
- When showing your home to a potential buyer, make sure room temperature is comfortable and that the interior is free from unpleasant odors. You want buyers to put focus on your home and what amenities it offers - not on how hot it is or how bad it smells.
- When selling your home within 5-years of making home renovations, look into an adjustable rate loan; this could save you big bucks!
- Undertaking home remodeling projects late fall and early winter can save you money. Project bids are usually more competitive because contractors want to pick up extra work for holiday expenditures.
- Two remodeling projects with curb appeal that repeatedly reward homeowners with high ROI and quicker sales are siding and windows. Landscaping efforts also offer high returns - often more than 100%.
- The return investment is usually greater when homeowners remain in their homes 5 years or more after home renovations, at a time when remodeling costs are higher. Unless, of course, renovations followed a trend that has since become outdated.
- While homes with pools usually go down in value slower than those without, installing a pool to enhance sale potential is a poor investment; one with very low recoup potential.
- When you over improve it is difficult to recover investment costs when selling; pay attention to your neighborhood norm. It is possible to boost your home worth so high that it is no longer marketable in the neighborhood in which you are living.
- De-cluttering your home makes it look more roomy and inviting. It is a cost-free way to enhance sales potential, and can even increase what buyers are willing to pay for it.
- A quick, effective way to increase evening curb appeal is to add landscape lights, or a decorative street lamp.
- If your yard lacks interest, consider constructing a retaining wall. Use railroad ties, bricks, or stones to construct a wall with old-world charm. One that compliments landscape design and the style of your home.
Previous...Landscape Improvements
Start over...101 Ways to Increase the Real Estate Market Value of Your Home
Posted by: TrustedProsSuggested Reading For You
14 Great Holiday Gifts for any Handyman or Handywoman
It’s difficult to find the perfect gift for someone whom you care about—especially when you have little knowle...
Good or Bad, Online Consumer Reviews aren't Always Created Equal
There are mixed feelings about negative reviews in the goods and services industries. Many business owners bel...
