Will My Home Value Increase After A Remodel?
There are two main reasons why a homeowner would embark on a project as big as a house remodel. Foremost is the wish to increase the space in their home and repurpose various areas. A remodel can rearrange the layout of the house. Modernizing the home and providing better functionality. Secondly, homeowners choose to remodel their home to increase its market value and list the property for sale.
Can A Remodel Successfully Improve The Homes Value?
A remodel can improve the house’s value when it is done right. But there are a few traps to watch out for. A successful project requires some thorough planning and well-thought-out budgeting. When renovating or remodeling to increase market value and sell your house, some types of improvements will earn greater returns than others. Establishing a "priority area" is important because it promotes one of the most used spaces in the home. It's the wise adage, that those first impressions count.
It goes without saying then, that the front façade of your house, the entry and the front garden should get some serious attention. After that, you will get the most impact from a new or renovated kitchen and bathroom/s. Another major improvement that will add value to your house is rearranging the layout into a spacious, open floor plan. Creating a space that flows and maximizes both living space and private areas. Older homes typically are a maze of small, partitioned spaces that do not connect well. Conversely, improvements like painting the back fence and making a showcase of your vegetable garden will achieve little or no value increase.
Understanding Your Local Market
When you are remodeling to sell the property, try to avoid spending a lot of money on 'hidden' upgrades. Such as wall and ceiling insulation or updating the plumbing and wiring. Of course, if you plan to live in your remodeled home for some years to come, these upgrades could be paramount for your increased comfort and utility. Modernizing your services like plumbing, drainage, and electrical can contribute significantly to decreased consumption and this will translate to long term savings in running costs. Not to mention, recent up work on these features is a great selling point to home buyers when the time comes to sell.
Before deciding on the extent and nature of your remodeling, you need to understand the character of the neighborhood your property belongs to. You need to ensure that any upgrade you are planning isn't overcapitalization. It makes economical good sense to avoid making changes that won’t blend well with the houses around you. It is hard to recoup your investment if you plow a lot of money into a glamorous remodel of your house that exceeds the typical home in your area.
Not only will buyers only pay a certain amount for any home in your area, but a luxury refit may also scare off potential buyers or the property may take much longer to sell. It doesn't pay to be the most expensive house in the suburb. It is best to keep the character of the remodeling and your home’s new décor more neutral and concentrate more on improving the functionality of the house. This will help ensure that your property will appeal to the widest range of potential purchasers.
Which Improvements Increase Property Value the Most?
If you are aiming to improve the market value of your home for refinancing purposes or to list it on the market, some aspects of the house bring the best returns when remodeled. After improving the front of your home to increase curb appeal, concentrate on big impact areas like the kitchen and bathrooms. Updating these two areas are among the top improvements that increase profit. Remodeling these areas can add huge buyer appeal and significantly increase the value of your house.
When remodeling your kitchen, be sure to choose a modern, neutral color palette that can be complemented with dashes of color, texture and flair in the accessories. This will appeal to the greatest number of buyers. As they can imagine their interior décor fitting in well, rather than clashing with something loud and extravagant. Make sure your new design adds storage and extra counter space.
A kitchen remodel may involve the moving of walls to open up the space. Enabling a natural flow into adjacent living spaces. Your best investment is to make cooking and entertaining more enjoyable and more inclusive. However, this requires structural changes which may impact load-bearing walls and can be expensive. Alternatively, your plan may only require a renovation to freshen up the style and modernize the look. Cabinets can be painted or replaced and modern appliances fitted. Add some new cabinet handles and a modern sink. That may be all it takes for a whole kitchen makeover.
Remodeling that Delivers the Most Value
Like a kitchen, a bathroom remodel doesn’t have to mean changing the entire floor plan layout and adding, removing or relocating walls. It can be refurbished with new cabinetry, modern tiling and trendy new fittings with a fashionable new color scheme. If your home has only one bathroom, you will be sure to get a good return on your investment if you can add another bathroom. Another area that brings big returns on your investment is the addition of an exterior living area at the back of your home. A covered patio or an elevated deck represents an extension of living space. As well as a lifestyle upgrade that potential buyers will gravitate towards.
When you concentrate on delivering the best returns for your investment, avoid upgrades that only win a small return for your spend. This includes adding a swimming pool, over-the-top luxury inclusions in your bathrooms or kitchen, and the installation of stunning landscaping. There is, however, a surefire way you can increase the value of your property when remodeling your home and that is by building an extension to the floor area. This will gain valuable additional space in the house and that adds significantly to the property’s value. An extension can be at ground level or it can be adding another level to the home. You will need to familiarize yourself with the relevant local authority’s planning rules before designing your planned extension.