January 3rd, 2011
Remodeling Projects That Will Increase Your Home’s Value
- Whether you are thinking about putting your home on the market or you are concerned about increasing your home’s equity in a time of depreciating house values, knowing which remodeling projects yield the best return on investment, is critical, says Larry Flick, CEO of Prudential Fox & Roach.
“Not all home remodeling projects are equal in terms of Return on investment,” explains Flick. “In today’s economy it’s important that homeowners understand the value a particular home renovation will – or won’t – add to their home.”
Flick recommends checking with your local real estate professional or researching websites such as the National Association of Home Builders to determine the potential return on a remodeling project. Following, are the top 10 renovations in terms of increasing your home’s value:
- A Home Office Remodel- With more and more people telecommuting in today’s difficult business climate, home offices are becoming less of a luxury and more of a necessity.
- Renovate or Add a Family Room- A family room is an excellent way to make existing homes more like new construction.
- Replace the Roof- The roof is one of the first impressions people have of a home. Replace an old roof or change the character of your home by looking into architecturally styled roofing tiles.
- Landscape Your Yard- Landscaping is also an integral part of your home’s first impression. A professionally landscaped yard adds value to your home and increases your living space.
- Replace Old Windows- Thirty percent (30%) of a home’s energy is lost through its windows. Replacing old windows with energy-efficient ones ups the overall quality of the house and saves you money on monthly utility bills.
- Remodel Your Basement- Do you have unused space that serves as a black hole of unused items … like your basement? Remodeled basements make excellent game rooms or guest suites, adding value to your home without adding space.
- Paint- While a basic step, the value of a good paint job can’t be emphasized enough. Hire a professional if you need help and keep the colors neutral if you’re looking to sell.
- Remodel Your Kitchen- Kitchens sell a home, and in this case, size does matter. But a kitchen remodel is a long-term investment; you’ll see payback 10 years down the road.
- Remodel or Add a Bathroom- A bathroom remodel can mean making the most of your current space by upgrading fixtures, flooring and lighting. Or add a bathroom and automatically increase the value of your home.
When looking to add value to your home, Flick advises taking into account the other homes in your neighborhood. “You want to make sure your home is comparable to the homes in your community and can compete with any new construction in the area. If most of the homes have a modern kitchen, for example, you’ll want to update yours.”