December 24th, 2011
Making a renovation to your home can be stressful, both on your mind and your bank account. When considering a major home improvement project, it’s important to consider what will yield the greatest return on investment, or ROI.
Some improvements offer a greater return than others. If you’re planning on selling your home anytime in the future you should consider your renovation an investment. Take a look at surrounding properties and compare features for inspiration.
You want to make your home comparable to your neighbors’, but you don’t want your property to stand out to the point it will land in a completely different price range. This will hinder your selling success, instead of enhancing it. If your neighborhood consists mainly of simple ranch style homes, and you add an extra floor, an in-ground pool and an outdoor kitchen, then your property is not comparable to surrounding homes, and those extras you such your time and money into may end up costing you.
Some of the most popular pre-sale home improvements offering high ROI are siding replacement, kitchen and bathroom remodeling, features like a new roof or front porch, and window replacements. With green features currently trending, adding energy efficient windows or appliances can be a major boon.
Keep in mind what buyers will be considering when making decisions between properties — square footage, number of bathrooms, updated features, etc. they are looking for things that are practical and functional, like a two car garage or main-floor bathroom, not extra — like that new swimming pool.
Custom features like pools and elaborate landscaping may seem like a great selling point to you, but your buyer may see them as superfluous, or something requiring additional time, maintenance and money.
When considering renovating your home, write out a list of wants versus needs. Is your renovation practical? Will it make your home comparable to surrounding properties in similar price rangers? A finished basement or laundry room may be a logical renovation, wheres a home gym may not. Talk to your real estate agent and local housing experts. Gain knowledge on what features sell a home in your area. Ask neighbors about their homes, and any renovations they may have considered making. If your improvement is practical and will amp your home’s appeal without landing you in a completely different selling range, then your project will most likely yield a high ROI.