Renovate For Return On Investment!
With all the extreme makeovers and trading of spaces going on, it’s no wonder the home improvement bug is spreading like wildfire. Homeowners are spending more time and money on renovations (not to mention at Home Depot) than ever before. But, while a new outdoor pool may elicit envy from neighbors, when it comes to recouping your costs at the bargaining table, not all renovations are created equal. Home may be where the heart is, but it is also your largest investment so it pays to do some research before you get spackling. Here are your best bets for ROI when it comes to renovating.
Kitchen
A run-down kitchen is a big turn-off to potential buyers no matter how immaculate the rest of the house may be. Luckily, a few minor additions like dual sinks, granite countertops or under-cabinet lighting can make a big difference. According to a 2004 survey by Remodeling Magazine you can expect a return of about 92.9 percent for a minor kitchen remodel.
Bathroom Remodel
For another home renovation that practically pays for itself, look to the bathroom. A mid-range bath done right can translate into a ROI of 90.1 percent. The most desirable additions here include couples walk-in showers, Jacuzzi tubs, vaulted ceilings and skylights.
Add a Bathroom
If your home has more than two bedrooms but only one bath, consider adding another full or half bath. This will dramatically increase the value of your home and make it more attractive to potential buyers. A bathroom addition will fetch an average return of 80.1 percent.
Add a Bedroom
Adding another bedroom to your home often involves rearranging existing rooms and breaking down walls, but as difficult and time consuming as it seems, it will pay off at resale. The number of bedrooms in your home is one of its top selling features and if you have the space, budget and patience to do it, you are likely to recoup 82.7 percent of the installation cost.
Outside
Freshening up your home’s exterior will do wonders for its curb appeal and its value. Installing new siding will recoup an impressive 92.8 percent of the cost. A new deck is also a worthy investment, boasting a ROI of 86.7 percent. Another easy fix is replacing old windows, which will not only earn a return of 84 percent, but the energy efficient variety can ultimately save money on energy bills — good news for you and for potential buyers.