Renovating for Resale: Where to Focus Your Attention
When considering what renovations to do in your home, it can feel like you’re a slave to resale value projections, rather than your own desires for customizing your home, not to mention the ever-present third category: necessities such as new roofing. Luckily, the correlation between exciting renovation projects and solid return on investment can be stronger than you think! According to HGTV, a good rule of thumb is to plan to recoup about 75 to 80 percent of your cost upon resale, meaning the renovations cost an average of 20 to 25 cents on the dollar.
It’s long been said that kitchens and bathrooms sell homes, and there’s definitely some truth to this real estate cliché. Kitchen remodels are a great example of a marriage between resale value and improved livability of your home, although it’s important to keep the scale of the remodel in mind when considering this project. According to the Remodeling Cost vs. Value report, minor kitchen remodels have yielded a greater ROI over the past four years than major ones.
Minor kitchen remodels can best be described as updating what is already there, such as putting in new countertops or updating cabinets and appliances, rather than gutting the kitchen completely and starting fresh. Here are some tips for what to consider when embarking on a minor kitchen remodel:
Bathrooms are another great target for remodeling, as those projects are cheaper on average than kitchens. Before beginning a bathroom remodel, it’s important to consider all of the bathrooms in your home, rather than each one on an individual level. You could also consult with a realtor to find out what other houses on par with yours have to offer. This could make the difference between turning a half bath into a full bath, or simply updating the décor of the bathroom.
There are rules of thumb when it comes to renovations and resale value, but one of the most common ones is that these rules largely depend on your home and the real estate market it’s located in. Here are some additional factors to consider when deciding where to put your cash:
-The length of time between renovation and resale.
-Selling features of other homes in the neighborhood, such as number of bathrooms.
-The size and price of your home; if on the smaller side, a lavish kitchen remodel, while appreciated, might not make sense to buyers.
For more tips on renovating for resale value, check out Morgan Kraljevich’s articleon on Fix.com.