Smart Home Renovation Upgrades to Maximize Value and ROI
Beginning a new home renovation project can be an exciting process that lets you turn your living space into an exciting place to live in that speaks to your unique style. For DIY enthusiasts, these projects can also create an opportunity to acquire new skills while potentially saving on expensive labor costs.
However, another important thing to understand when making certain home renovations is how the changes you make will impact the value of your property, especially if you’re considering selling it in the future.
Why You Should Keep ROI in Mind When Renovating
Before you decide to start a new home improvement project, it’s first important to assess the potential value impact it can have on the property.
This begins by evaluating any potential return on investment (ROI) you see, which is the profit you make when calculating the total costs of a renovation against the home value increase you can experience after the renovation is accomplished.
When you take the time to evaluate your home renovation ROI, it helps you to make smarter decisions about how you proceed, not just making design choices based on what you like best.
Things That Can Impact Your ROI Potential
It’s important to know that the ROI that can be achieved from a renovation isn’t the same for everyone. Several factors can contribute to whether your project yields positive results. These factors can include:
Where Your Property Is Located
The real estate market is constantly evolving and where you live can play a big role in where the current property values sit. This includes the buyer appeal of certain types of home upgrades.
Some neighborhoods might be applicable for focusing on upscale kitchen upgrades with modern features. In other areas, more priority might be placed on properties with energy-efficient home features. By evaluating your home in relation to similar properties in the area, you’ll have a better idea of what potential buyers might prioritize.
Investment Costs vs. Property Sales
A big part of getting the most value from a home renovation project often comes down to budget management. Investing too heavily in certain upgrades can quickly put a strain on finances and may not offer the return you’re looking for after everything is finished.
You want to make sure you’re striking the right balance between making necessary improvements to your home and keeping expenses in check. Overspending on any particular renovation doesn’t always translate into a proportionate increase in value, which leaves you with a much smaller profit margin if you plan on selling your home.
The Quality of Your Renovations
The ROI you can expect out of your completed renovation project will often be tied to the quality of work being done. Even by putting in your best effort, a DIY project might not have the same level of quality as a professional contractor can deliver.
Potential buyers often scrutinize the finer details before making a commitment. This is why investing in high-quality materials and expert craftsmanship can often pay dividends in the long run.
Practical Home Renovation Ideas With High ROI
If you’re looking for some practical ideas that typically offer promising returns, below are some renovation projects you might want to consider:
Remodeling Your Kitchen
The kitchen is usually a central hub of activity for many households. Because of this, ensuring yours is modern and well-designed can significantly improve your property’s market appeal.
The beauty of kitchen renovations is in their potential for high financial returns, even with more moderate investments. Upgrades such as refacing cabinets, replacing countertops with higher-quality materials, and swapping out older appliances for newer models can make a big difference.
Remodeling Your Bathroom
A great-looking and highly functional bathroom can be a major selling point for any property. Many older homes have dated bathrooms that are in need of a good refresh. A bathroom remodel offers an excellent opportunity to transform a small space and significantly increase your home’s value.
Making simple upgrades like replacing outdated fixtures, upgrading the shower or bathtub placement, or adding new tile flooring can make a significant difference when it comes to your home’s value.
Improving the Outside of Your Home
First impressions make a big difference, especially in real estate, and your home’s exterior can heavily influence a home buyer’s decision.
Investing in curb appeal improvements is often a wise strategy. This could involve reshaping your landscape, adding in new charming flower beds, upgrading the front walkways, or even installing a new gazebo to create a more inviting outdoor space.
When Is It Sometimes Better To Sell a House As-Is?
While there are many different renovation projects that can improve your home’s value, not all projects are worthwhile before listing your property for sale. In a seller’s market with high demand, smaller improvements could provide a good reward. This means that selling your house as-is could be a viable option to explore.
The other thing to consider is that some homes possess unique architectural features or have historical significance that many buyers might be looking for. In these cases, it might make more sense to consult a local real estate agent before making any large changes to make sure you’re not inadvertently reducing your home’s appeal with certain renovations.
Get The Most Long-Term Value From Your Renovations
Home renovations can be a great way to elevate your living space while improving your property’s value. However, it’s important to make wise decisions when choosing what types of changes you make to your home.
By prioritizing projects with more promising ROIs and considering local market trends, you’ll be sure you’re making the right investments that will pay dividends down the road.
Guest post by Michael Alladawi
Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive Real Estate to share his industry knowledge and help homeowners maximize their profits when selling their homes. Michael’s passion for his work is as big as his desire to create lasting partnerships. For Michael, it all comes down to how much value one offers, both in business and life relationships.