Renovations aren’t just for looks. The right ones have a good chance of increasing your home’s value, too.
Are you considering making some updates in and around your property?
While there aren’t any guarantees, some updates and changes might be more likely to pay off than others.
Here’s a look at six common renovations that can show a solid return on investment.
Increasing your home’s efficiency can pay off on multiple fronts. For one, it can cut down on your energy bills significantly. Some data suggest just upgrading to a smart thermostat like Nest or Ecobee can reduce your energy bills by nearly a quarter.
Energy-efficient upgrades also make your home more marketable. Buyers know the savings that come with high-efficiency homes, and they’re willing to pay a premium for them.
Some upgrades you might want to think about include:
You could also strategically plant trees to give your house more shade, thereby cutting down how much A/C you need to use in the summer.
Increasing the usability of your house can add serious value, too. This doesn’t necessarily mean adding another bedroom or building a second story. Instead, think of ways you can make currently existing spaces more functional.
Could you finish the basement or turn it into a game room or exercise space? How about turning the attic into a small guest room or study? Could you add a closet in that empty space under the stairs? The more usable space you’re able to add, the more your home will be worth to future buyers.
A minor kitchen remodel is one of the best ways to improve your property value.
In fact, according to Remodeling Magazine’s 2020 Cost vs. Value Report, it’s actually No. 3 on the list of best home renovations, offering a 77 percent return on investment and $23,000 in added resale value.
The updates don’t have to be huge either. Installing a modern farmhouse sink, refacing the cabinetry, swapping out the drawer and cabinet hardware, and re-doing the countertops in quartz can all be smart options.
You might also consider upgrading appliances like the fridge or dishwasher to more efficient models.
Making your home more attractive can only have benefits. First, it makes your home more marketable to future buyers. That could mean more competition, bidding wars, and potentially higher sales proceeds once all is said and done.
But more than that? A more attractive house is more likely to appraise higher, too.
You might try sticking with basic upgrades to landscaping and home features rather than pumping a bunch of money into expensive water features or other more extravagant options. Everyone’s tastes are different, and going too far out there could wind up pushing some buyers away.
Improving how your home looks on the outside is undoubtedly important, but increasing the outdoor areas’ functionality is even better.
Adding a wood deck, for example, can increase your resale value by over $14,000, according to the Cost vs. Value Report.
You can also consider installing an outdoor kitchen, a covered patio, or even just a pergola for extra shade.
No one likes a high-maintenance house (or the work and high costs it comes with). Want to increase your home’s value? Then find ways to reduce the maintenance and upkeep it needs.
That might mean hardscaping or xeriscaping the lawn, upgrading to longer-lasting systems and appliances, or replacing hard-to-care-for exterior features (like stucco or wood siding) with more durable options.
Your home’s not just a place to lay your head at night; it’s also an investment.
Making smart upgrades to your property can not only help protect that investment, but increase its long-term value (and your future sales profits from it), too.