How Home Renovations Can Impact the Re-sale Value of Your House

Table of Content

Best and Worst Renovations that Impact Re-sale Value

Kitchen Remodeling

Bathroom Renovation

Exterior Landscape and Curb Appeal

Home Renovations to Avoid If You’re Selling This Year

Backyard Patio

Primary Bedroom Addition

Home Office Renovation

Frequently Asked Questions (FAQ)

What does renovate mean?

Do renovations add value to your home?

What renovations increase the value of a home?

What home improvements add the most value 2021?

What adds the most value to a house?

What renovations are worth doing?

How much do renovations increase home value?

Does a pool add value to your home?

How to increase home value?

What makes property value increase?

What renovations increase home value the most?

Savvy home sellers who want to increase their property value have been turning to DIY projects and home renovations. But sellers beware – some home renovations that will decrease the value of your property actually exist. You’ll want to know the difference between remodel and renovation to see if going all-out will actually give you the return on your investment that you’re looking for.

Best and Worst Renovations that Impact Re-sale Value

Selling a home that you’ve recently renovated means you may lose out on some money you’ve spent on home improvements if you’re not careful when it comes to keeping general buyers in mind. Throughout the process, you need to have a home improvement value calculator formula that will help you determine if it’s worth the trouble or not.

Kitchen Remodeling

When beginning the selling process with an outdated kitchen, you may quickly realize how many buyers are looking for a move-in-ready home. This doesn’t mean you should go all-out on luxury upgrades. In fact, a beautifully updated kitchen with high-end upgrades may only yield an ROI (return on investment) of less than 60%, whereas a mid-range minor kitchen remodel can return 80% of your costs.

Bathroom Renovation

There’s a right way and a wrong way when it comes to increasing your home’s value through a bathroom remodel or renovation. If you’re considering adding a new bathroom altogether, you need to think if it’s necessary. The standard ratio is one bathroom for every two bedrooms. A full out bathroom renovation can return an average of 62% of your total cost while a minor remodel sits around 67%. A few simple things you can do to upgrade the space is:

• Re-caulk the tub
• Change the showerhead
• Replace the faucet

Exterior Landscape and Curb Appeal

Before adding in a brand new pool, think about how much you’re going to use it and if you may possibly move in the future. Despite popular belief, this renovation could cost you tens of thousands while returning $0 on your investment. In fact – the new owners may take it out anyway. Pools are for a particular type of buyer and have maintenance costs that come with them. It’s not for everyone! Here is what you can do on the outside that’ll increase the value when an offer comes to the table.

1. Get a new front door. This can have a 90% resale value as it’s the first thing a buyer sees before walking into the home.
2. New siding or stone veneers can lead to a resale value of 80% as a home upgrade with a contemporary feel.
3. A new garage door can attract buyers with an instant “wow” moment and has a return on investment of roughly 77%.

Home Renovations to Avoid If You’re Selling This Year

Without the knowledge of project costs and possible resale value, it’s easy for homeowners to slip into a negative dollar when remodeling for resale. These are some of the worst renovation projects out there if you’re not going to be around long enough to enjoy it based on the negative impact it will have on resale or just no impact at all.

Backyard Patio

Patios aren’t always used, are not typically visible and are pretty standard in most areas. There’s no need to go out of your way to install one before you put your property on MLS.

Primary Bedroom Addition

Expanding the primary bedroom can be an expensive project to take on. Unless you’re going to be there to enjoy it for a few years, there is no need to take this one before you put your property on the market. In today’s market and for most buyers, a generously sized master bedroom is not going to sway them to put an extra $10,000 on the offer.

Home Office Renovation

During the work-from-home craze, many homeowners started converting bedrooms into offices or changing other spaces of the home. While this is great if you’re currently living in the space and making great use of it, this doesn’t appeal to every buyer, especially those who don’t work or have an office space they have to travel to. This type of renovation doesn’t add much to the resale value as a general rule of thumb.

Frequently Asked Questions (FAQ)

What does renovate mean?

A renovation is defined by the Oxford dictionary as restoring (something old, especially a building) to a good state of repair. Not only this, but it could also mean that the space was refreshed. When it comes to house renovations, this could be as simple as updating the light fixtures or as complex as remolding a home by knocking down walls or adding additions. To renovate means that you’re improving upon the current condition, whether it’s the inside of the house or outside as well.

Do renovations add value to your home?

Home updates do add value to your home – usually. Renovating rooms to your own personal taste or spending on luxury home upgrades could be a waste of money if you’re only intention is to renovate house for sale. While some property renovations allow for an immediate way for you to improve home value, some are a waste of money if you won’t be around long enough to enjoy it.

What renovations increase the value of a home?

There are many home improvements that add value while some may be more of a personal preference you’ll have to keep in mind. Before embarking on the total home renovations that increase value 2021, you’ll need to consider those home improvements’ ROI (return on investment) before pouring money into a project that won’t help the home resale value. To name a few, here are some home renovation ideas that will increase property value:

• Stone Veneer for a modern curb appeal look and even interior accents.
• Minor kitchen home upgrades to increase value.
• Garage door or siding replacement.
• An exterior property renovation, such as a deck.
• Believe it or not, a fresh coat of paint can make a significant difference for your house upgrades.

What home improvements add the most value 2021?

The best home improvements for resale 2021 vary depending on the type of neighborhood you’re in and the typical buyer profile. Generally speaking, the best home improvements to increase value are:

• Minor kitchen remodels
• Paint
• Bathroom renovations
• Flooring
• Finishing a basement
• Open concept design (aka knocking down an unnecessary wall that is NOT load-bearing)
• New roof
• Landscaping
• Exterior upgrades such as siding, gutters and trim
• New windows

What adds the most value to a house?

You might be surprised which house remodeling projects increased home value more than others when evaluating the remodeling costs vs value. The national average showed that a garage door replacement recouped 93.8% of the price while a minor kitchen house renovation only recouped 72.2%.

What renovations are worth doing?

If you’re looking for home improvements that add value, you’ll need to consider which are worth doing. If the goal is to create your own personal home oasis, the sky is the limit. After all, if you’re renovating to your taste, you don’t have to worry about the best renovations to do before selling. However, if your goal is to start working on the best home improvements for resale, here’s what you can start with:

• Re-caulking the tub
• Replacing faucets
• Changing showerheads and light fixtures
• Painting
• Changing out hardware

How much do renovations increase home value?

If you’re considering how to add value to home and are wondering which renovations will increase the home value, these are the key trends of the top 5 upgrades to increase value and have a fair ratio between the remodel cost vs value.

1. Garage Door Replacement – the resale value is $3,663 and recoups approximately 93.8% of the cost.
2. Manufactured Stone Veneer – the resale value is $9,571 and recoups 92.1% of the cost.
3. Minor Kitchen Remodel/Midrange – the resale value is $18,927, which can recoup 72.2% of the cost.
4. Siding Replacement & Fiber-Cement – the resale value is $13,618 and recoups 69.4% of the cost.
5. Window Replacement/Vinyl – the resale value is $13,297 and recoups 68.6% of your costs.

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Does a pool add value to your home?

A pool does not necessarily add to home values and if you’ve put one in before selling, you may not see that return on home improvements that you were hoping for. Depending on the climate of the state you’re in, this may not be a popular item and is more of a personal preference. For a pool to increase the value of your home, you’d need to find the right buyer that’s willing to pay for the amenity. Pools are a lot of upkeep and aren’t for everyone, so unless you plan on enjoying it yourself, perhaps leave it off your house renovations list.

How to increase home value?

The best ways to increase home value is to evaluate the type of market you’re in, the comparable homes in your neighborhood and how you can stand out. Not all new construction upgrades that add value are worth it, such as welcoming a new pool to the backyard. Keep it simple and take yourself out of the equation. Pretend you’re a prospective buyer and start analyzing what could be wrong with the house. Is the paint chipped or an outdated color from the 70s? Is the hardware old and needs replacing? Find home upgrades that add value without breaking the bank. That way you won’t be increasing home value just to realize you spent more in renovations for someone else than you made on the home sale.

What makes property value increase?

When selling your home, you naturally want to sell for top dollar and may be wondering which renovations to increase home value you should start with. It’s not always just the property renovate plan that will get you there. Here are a few things that can make a big difference in the sale price:

1. Great curb appeal from the moment the buyer walks up to the home. This could be manicured landscape or an exterior upgrade such as replacing the siding.
2. The area being developed. This is out of your hands but will likely increase the property value once the development has been completed.
3. Renovation and remodeling on the significant items such as kitchen and bathroom.

What renovations increase home value the most?

Renovations that increase home value the most are typically those that will appeal to a large pool of buyers. Don’t go overboard on remodling your home with the latest trends as the classic contemporary and neutral renovations homes will increase home value without catering to a specific type of buyer. If your goal is to remodel a home to sell it, you want to make sure you stick with the top 10 that will prove to be home renovations that add value.

Renovating your home to increase the value likely means you’re a smart seller that is looking to make the most money from your home sale. Instead of handing over those savings in commission to a real estate agent, you can list on MLS for free and get the same global exposure on over 750 websites. Don’t go Broker, go Richr!