According to Forbes Magazine, there are several home renovations which have proven to be the most profitable, where you will get the majority of your costs recouped. And then, there are those improvements that provide almost no return or could even come back to haunt you when it’s time to put your home on the market.
If you have plans to sell your home in the near future, or even if you are planning to make some upgrades, here are a few renovations where you get more bang for your buck.
According to Forbes, making this valuable home improvement can give you back 102 percent of your investment. So if you have a dated front door, it may be well worth it to spend the approximately $1000 as you may just get it all back. Remember, an attractive front door is one of the first things a buyer sees, so it needs to create a good, lasting impression.
Garage Door Replacement:
Buyers take note when they see a damaged garage door. Perhaps you have one that is dented because kids use it as a goal when kicking their soccer balls into it. You have a good chance of recouping 85 percent in total costs if you update this feature.
Minor Kitchen Remodeling:
Updating the kitchen, which is considered by most buyers to be the most popular and well used room in a home, can generate a 73 percent return on monies spent. Note that the key word here is “minor.” A seller does not have to completely renovate their kitchen, but simple updates go a long way. Such as replacing dated flooring, countertops and upgrading appliances. If your cabinets have seen better days, you don’t necessarily need to replace them but maybe a good coat of paint with newer hardware will do the trick.
Buyers love to see a home where outside entertaining is made easy. Having a wood deck is essentially adding another room to a home. A seller who adds a deck can see a 73 percent return on their money.
If you have plans to turn your upstairs attic into a bedroom, know that you can get up to 72 percent back on your investment. Buyers love the thought that this space can be used as a guest room, a teenager’s bedroom or even a quiet place to use as a bedroom/home office.
Buyers enjoy walking into a finished basement. Whether it will be used as another television room, a man cave, a teen hangout or children’s playroom, maybe even a guest quarters, this is one of the top things families ask for when looking at homes with basements. The value of remodeling a basement? Up to a 70 percent return.
While Forbes lists a few other upgrades as well, such as window replacement and vinyl siding, we have found that the above are some of the most popular improvements a buyer can make.
Yet, with every bit of good, there must be some bad. Keep in mind that not all home improvements are created equal. According to Forbes, here are some of the worst investments to make.
Home Office Remodeling:
Buyers don’t necessarily need a full-blown home office. Many buyers are simply happy with a desk, computer and Internet service. To spend thousands of dollars on built-in bookshelves and high-end features may not prove to be a profit when you sell your home. The average cost recouped is 46 percent.
Backup Power Generator:
With only 49 percent return on your investment, many buyers are saying they will take their chances the next time there is a blackout.
Upscale Garage Addition:
Buyers are not necessarily knocking down our doors looking for a home with a state of the art garage. If you spend anywhere from 40k to 90k on renovations, you will likely only see a cost return of around 50 percent. That is, unless a buyer for your home is a car collector. Average buyers want storage and a place to park their cars. That’s pretty much it.
Upscale Master Bedroom Addition:
This can be very costly to a homeowner, but unfortunately, you will only get about 55 percent back on your investment. A massive master bedroom, with sitting area and all the other bells and whistles are not high on buyers list these days. Bigger is not always better. Currently, we are seeing many buyers looking for smaller, more manageable homes.
Upscale Bathroom Remodel:
Spa bathrooms are no longer in the high demand that they once were. Many buyers feel this is a luxury they can no longer afford or they no longer desire. Soaking tubs, rain showers, steam rooms are no longer a requirement, though they are nice. Chances are, you will see about a 65 percent return on your money.
Sun Room Additions:
While a wood deck addition is very popular, sunrooms aren’t so much. It’s because most home owners rarely use them and buyers often look at it as wasted space. On average, a homeowner will get about 50 percent of their costs back.
Keep in mind, that if you plan on living your house for the unforeseeable future, then by all means, upgrade your home with whatever suits you. However, if you are thinking of selling your Windsor property in the near future, it may not be wise to build a movie theatre, which is one of the additions that many buyers are ignoring these days. The latest dip in our real estate market has changed what buyers are looking for in a home. Smaller and simpler seems to be the rule with most. The once popular McMansions are harder to sell these days, as many buyers are wary of buying at the top of their budget.