If you’re living in your forever home, then renovate to your heart’s content. But if you think there may be a chance you could end up selling your home one day, then it’s important to know if the renovations you undertake will actually add to your home’s value and give you a better return on investment (ROI) — especially if you plan on moving soon.
With that in mind, you’ll want to check out these examples of some of the best and worst home renovations in terms of ROI:
Total Roof Replacement. If you’re looking to add major value to an older home, installing a new roof can provide a large ROI. New roofing adds value to any home, and potential buyers will love knowing they won’t have to spend their money on roofing projects anytime soon. Replacing your roof also provides the opportunity to give your home a fresh look, drawing in more prospective buyers.
New Window Installations. New windows add significant value and ROI to your home in the same way a new roof does. Over time, the seals around your windows become less effective. They let external hot or cold air into your home, driving up your power bill as your AC unit works overtime to fix the temperature. Installing new windows means the new homeowners will get brand new glass that hasn’t cracked, chipped or warped over time. They also get fresh seals around the windows, which saves them money.
Updated Kitchen Appliances. Back when you looked for an apartment to live in, the landlord probably mentioned that there were standard units available and also units with updated kitchen appliances. Those are typically a little more expensive since new kitchen appliances will last longer. When replacing refrigerators, ovens, microwaves and sinks, look for more modern versions of what you had before. Buyers love to find things like stainless steel and smart technology in the kitchen, and will pay more for it when it’s in a house they like.
Modern Bathroom Fixtures. Before renovating your bathroom, be sure to read about bathroom trends, like glass showers, rain shower heads and gold fixtures against marble walls; bathroom fixtures that are outdated stand out in a house like a sore thumb. On the other hand, if your bathrooms — or at least your master bathroom — have a style that pops, it’ll draw in potential buyers. Everyone wants to live in a place that’s new and stylish. So install new bathroom fixtures that go along with current trends to ensure your bathrooms get a refreshed vibe that almost anyone will love.
Customized Room Additions. If you spend some time online looking at different customized room additions, you’ll see things like bookshelves, beds and entertainment stations built into walls. Those can be great to build because they save floor space. However, new owners may not prefer their rooms set up in the same way. So before you customize a room in a way that permanently alters the layout, think about future buyers; don’t pigeon hole future owners in your same style. Instead, change up the interior design of the room to give it a fresh and alterable look. Otherwise, your ROI may be non-existent.
Permanent Backyard Changes. Some permanent backyard changes can be good, while others decrease your home’s value, so be careful. Pools are a great example of something people love that can backfire when it comes time to sell. Although most people love the idea of swimming in their own backyard, pools require lots of maintenance, which is why pools offer one of the worst ROIs — not to mention their ability to turn many buyers away during a house tour. However, a backyard feature more likely to increase your ROI is a fire pit. They’re easy to install and maintain, and people of all ages enjoy them.
Think Things Through
As a homeowner, you can do whatever you want to the exterior and interior of your home, but be careful; if you know you’ll be selling your home in a few years, your renovations could result in a financial loss. So always research the renovation projects you’re planning to ensure they’ll result in a positive ROI.
Photo Credit: MarkMoz12