Not all remodeling projects add the same value to your property. There is a difference between what you need or want and what buyers and appraisers will look at. Some improvements have an overall higher return on investment because they are more desirable features. And beyond the project itself is the expense you make (quality of execution, materials, design). Last but not least, you may have grand ideas that may not matter much when it comes to comparables: when you consider remodeling projects, try to not over improve. That would undoubtedly lower your ROI. So what is popular? What to add, what to leave as is, what to demolish, what to restore? What, in the the end, will achieve the perfect balance of money well spent and wishes come true?
Should this stay or should this go?
Whether you want to do remodeling on a house that you plan to sell right away or down the line, it’s good to think about which remodeling projects are really going to pay off in the end. Some additions don’t add anything to the value of the house, just an extra flare that buyers won’t be willing to pay more for. But other additions or improvements will add a good amount of equity to your house.
It depends on the location as well. Compare your house to your neighbors, especially if one is going for sale. Check the asking price and how the house looks, did they replace anything? Add anything? Think of the reasons why you want to renovate. Think of the monetary value as well as the comfort level and weigh the pros and cons of the project.
NARI (National Association of the Remodeling Industry) and NAR (National Association of Realtors®) published a Remodeling Impact Report that digs deep into what, when, why and how much remodeling projects impact ROI.
Top 5 remodeling projects that give the most return
- The kitchen
This is probably the #1 room in the house women look for when they buy a house. Actually, a lot of men like a good kitchen as well. Remodeling this area of the house will give you a high investment return especially if you keep up with the trends and wants of the buyers and plan to sell in the short term. When buyers visit an open house the first thing they say about a kitchen is “it’s outdated” or “it was recently updated”. That makes a huge difference on the offer. Whether it is granite countertops or stainless steel appliances (the trend will probably change) it’s good to offer what buyers are buying.
Revitalizing the facade of your house makes a big impact on the first impression and the buyer’s decision. A lot of buyers don’t want a fixer upper and they definitely don’t want to redo the siding or exterior. New siding also addresses potential damage sources, loss of energy from worn insulation or poor caulking and adds curb appeal. Your house can look like new in no time.
- Patio and deck additions
This one is good but check with the area as well. Families will want a finished deck or patio area for their pets and kids and they won’t want to do much work. Fencing would be important if you’re looking at a family home and you have a backyard that has no boundaries or fencing the pool as well. These outdoor living space additions don’t have to break the bank but can make or break a sale. But beware, building a pool won’t give you much return because a lot of the times, buyers don’t care about the pool and the maintenance that goes with it.
- Making an extra room off the attic
A really good and profitable remodeling project is room addition, especially when you already have the structure established and you only have to add some touches. People love when a house offers a surprise factor. Whether it is a music room, man cave, guest room, they’ll love to get that room that others in the block don’t have. You’re adding extra livable square footage and it can add several thousands of dollars to your house!
People are willing to pay more for a house with updated bathrooms than remodeled rooms. If you don’t like the way your bathroom looks and would love an update, think long term for styles that last. Don’t go too exotic, themed or personal. One of the first things people criticize about bathrooms is the choice of tile and the size of the shower.
Think his and hers vanities, a big shower space (a high shower head for tall people) and neutral but pretty tiles and walls. If you go too crazy with the design, people are going to make the bathroom the #1 remodeling project and they’ll tear your investment down the toilet, pun intended!
When you’re planning remodeling projects, think about factors like: the timeline. When do you want this done by? To sell now, down the road? With that, think about styles that last and don’t follow the trends. Just because something is trendy doesn’t mean that 1, you’ll like it or 2, it will always be trendy. Consider the neighborhood, what houses are selling, which ones are on the market for extended periods of time and why, and consider the market landscape. Lastly, consider whether you want to tackle these remodeling projects alone, or if you want to hire a general contractor. To know what to do before hiring one, check my previous post here.
You deserve the Collom Construction quality.