Is Your Remodeling Project Likely to Return Your Investment?
Home remodeling. Nothing else causes as much frustration, nail-biting and satisfaction at completion as a home improvement project done right. After the time, money and probable actual tears are invested, and the results serve as proof of a job-well-done, what you want to feel next is that someday, it may all pay off. Only those homeowners who are planning to never ever leave that home have the luxury of not caring what they add to, or take away from, their home’s design or functionality and its effects on the its value. That rugged man-cave that you intend to add to the basement or that extremely expensive closet layout may seem like good ideas now, but will they add to your home’s value when it comes to reselling? Does it matter if you add formica countertops or a stainless steel farmhouse sink when remodeling the kitchen? If you are considering home improvements for the intent of getting more money when you sell, you need to know that not all remodeling projects, nor design and decor choices, deliver a return on investment and many can actually turn away buyers. Knowing just what your home and your neighborhood can absorb is step one. Knowing where to place your investment is step two. Here are the home improvement projects that are most likely to get you a return on your investment:
- Bathroom remodels – But nothing too extravagant or over-the-top. Keep the amount spent on your average bathroom to about $8,000 to $10,000 and you should see a return at about 102%. Potential buyers appreciate updated fixtures and features but the steam shower and sauna is probably over the top. Think two vanities and sinks to sink your money into rather than wasting it on higher end luxuries.
- Landscaping – Splashes of color, greenery and texture all add up to a warm and inviting space and increase curb appeal. When selling your home, you need potential buyers to want to actually come into your home and good landscaping beckons them in. With that extra appeal you should recoup just about 100% of what you invested.
- Kitchen Remodel – Nothing sells a home much faster than an attractive kitchen that is well laid out and functional. Invest in natural stone countertops, higher end appliances and lighting design to see the best returns. A minor kitchen remodel is said to return about 98% back to the investor.