Home improvement takes on many different faces but these days homeowners not only want style and function but a return on their investment. This means that, for every dollar spent on a home improvement project, the homeowners want an equal or greater return.
For the most part renovations do mean a return on investment because real estate prices for an area only take into consideration the price of an average-sized home for the area. Two similar homes will be priced equally if they have the same amenities and are in the same shape. However, if one has been updated and leaves little work to do for the buyer it will bring more money than its neighbor. The return on investment does not necessarily depend on the money spent but where it was spent.
Kitchen Remodeling
Redoing a kitchen is one project that can quickly escalate into a huge bill if the homeowner is not careful. The main culprit is cabinetry because the prices in the stores do not reflect the actual price. In fact many home supply stores advertise a certain cabinet at a certain price but when you finally get the estimate the price is 50% to 80% more because of things like “upgrade shelves. And little things like storage bins and lazy susans could knock the bill up by $1,000. If the home is being resold the homeowner should get a kitchen that fits the home and this may not include solid wood doors and granite counters depending on the price of the home. Because spending $50,000 for a kitchen on $200,000 home will not make the home worth $250,000+. However, a remodeled kitchen, even a modest one, will return about 60%-120% of the money invested.
Bathroom Remodeling
If this is an older home with one bathroom then the addition of a second bathroom is a must for resale, especially in a buyer's market. A contractor will have to be brought in to establish a location that will usually be the easiest place for a plumbing hook-up.
A new-looking bathroom smacks of cleanliness and this has an immediate effect on a buyer. An older bathroom it can be spruced up by replacing the tile floors and walls with new tile or, if the fixtures, are really old, a new tub enclosure vanity and toilet can be purchased for under $1,000. Even with labor costs the whole room can be redone for under $3,000 and this can return up to 130% of this investment.
Painting
The easiest way to enhance the resale and value of a home is with a tastefully redecoration by painting. If the home is to be sold then fashionable, neutral colors should be picked. It is odd that many people will buy the home because of the coloring but change it within six months of being in the home. However, what the seller wants to portray is a clean home that does not look dated. In all painting tops the list of returns in investment by about 300%, even if the job is professional done.
Finishing the Basement
Concrete basement walls are not offensive-looking but the average potential buyer may not see the potential of a living space here. However, even having the exterior walls area framed and drywalled will not only give a finished look to the area but also increase the energy efficiency which can be pointed out to home buyers. If the space is made into a functioning living area with a bathroom then the returns on this investment are around 100% -$120% otherwise just covering the walls with drywall will bring 60%-90%.
Decks
One of the best ways to increase living space for the best dollar value is by building a deck. Of course this should be off an area of the hoe where it is easily accessible from the inside. The payback on this project is around 50%-100%.
Windows
Old windows with wooden frames should be replaced unless they are part of an historic home. The shrinkage of the wood means that the glazing is subject to leaking and nobody wants to mask and paint window sashes anymore. Look at about $500 installed for an average-sized window and the payback is around 75%-110%.
Landscape
It is interesting to note that many people do not think of landscaping as a renovation. However, just keeping a neat lawn and the fence painted does not mean that the landscaping is complete. In recent years people have not been into spending half the day mowing lawn and picking weeds. They want a great-looking, maintenance-free yard and will notice a nicely-designed landscape. For less than $3,000 an average-sized lot can be transformed and the payback could be double.
For more information on contractors who can help fix up the home for resale consult our Contractors Directory or simply post your project and contractors will contact you.
Posted by: TrustedPros