We all wanted to add value to our house specially when we are planning to sell. However, not all renovation projects translates to profit. Some could end up a total waste of your time and money, while others did not add real value to your home.
Before you start that big renovation project, check out the cost. Make sure you don’t overcapitalize. It’s easy to get excited with the outcome that you might have a tendency to blow out your budget.
Any home improvement is good for the house, but not necessarily good for the pocket. You don’t want to be the best house on the wrong street! Having a cost price of $200,000 due to the improvements when the market price in your area is only $100,000 definitely sounds wrong if you are renovating for profit.
I remember visiting a house that was recently renovated prior to being offered in the market. It featured a designer kitchen. However, it did not match the house, specially the space allotted for the kitchen. In fact, the generous cupboards occupied the kitchen area and beyond that you cannot fit a proper dining table in the house. Installing an oversized designer kitchen sacrificed the space for the dining area. I find it very ironic having a space to cook your meals but not having an area to eat. The small dining table (good for two people) of the houses ended up near the laundry.
Renovating a home is pretty much like having a fashion makeover. The clothes should match the body and the budget, the way the home accessories or renovation projects should match the overall look of the house and the total cost as well.
- Minor Bathroom Remodel Ave. Return 102%
- Landscaping 100%
- Minor Kitchen Remodel 98.5%
- Vinyl Siding, Fresh Paint, Front Entry 70%
- Attic Bedroom Conversion 93.5%
- Major Bathroom Remodel 93.2%
- Major Kitchen Remodel 91%
- Deck, Patio or Porch Addition 90.3%
- Basement Remodel 90.1%
- Replacement Windows 89.6%
- Family Room 83%
- Bonus Room Updates 72.8%
- Living Room Updates -Decor 66%
- Bedroom Updates 52%
- Living Room Updates 40%
If you will notice, the highest average returns are the minor renovations and the least expensive projects. You don’t need to spend that much to maximize the return of your home. Work on a budget and prioritize the things that could give you the best return. Remember, an expensive renovation project is not a guarantee of a huge return.