Have you thought about remodeling your home, but don’t know where to begin? Some repairs and renovations may be downright necessary, but some are elective. While home renovations can be a great way to improve your home’s appearance and efficiency, the right projects can increase your home’s value. Whether you plan on selling your home one day or possibly renting it out to a tenant, certain home renovation projects can mean more money in your pocket. So how do you know which home renovation projects are potential money pits, and which ones are worthy investing in? Read on to learn more about home remodeling projects that are likely to increase the value of your home.
Many homeowners automatically think of the kitchen when it comes to renovating their properties, and with good reason. HGTV has reported that homeowners can normally expect a 60 to 120 percent return on the money they put into a kitchen remodeling project. On the other hand, it is possible to spend too much money on your kitchen remodeling project and go overboard. If the quality of the kitchen stands out from the rest of the home—or the neighborhood—it can be difficult to see this money again when selling your home. Alternatively, focus on the smaller things. That’s not to say a full kitchen remodeling project can’t be profitable if it is completely outdated, but remember that small improvements also go a long way. For instance, a new paint job in a hip and modern color can make any room pop, including the kitchen. And for the most part, paint is relatively inexpensive. Consider using low-VOC paint if you’d like to keep your kitchen chemical-free and more eco friendly. While also keeping the environment in mind, consider replacing older appliances with energy-efficient models. These features and appliances will appeal to many potential buyers and renters.
Installing energy-efficient windows
As mentioned above, individuals these days prefer to buy properties that are built, or at least enhanced, with energy efficiency in mind. In an average-sized home, the price for energy-efficient window replacements can cost anywhere from $7,500 to $10,000 or more. Nevertheless, don’t let these numbers discourage you: according to HGTV, when you sell a home with energy-efficient windows, homeowners can expect to recover anywhere from 60 to 90 percent of their investment. Don’t have intentions of selling your home? Energy Star-rated windows can still put more money in your pocket by cutting your cooling and heating costs. Additionally, homeowners with these types of windows may qualify for a 10 percent green energy tax credit, and may also qualify for other tax credits offered by their local utility company.
Reinventing a room
Adding more square footage to your property by building another room can be a very expensive project. Due to all the issues that can arise with this type of project, it could end up costing a homeowner much more than he or she initially anticipated. Alternatively, consider completely remodeling an already existing room in your home. An old basement, attic, or other outdated room, for instance, can be completely transformed into a bedroom. Some homeowners will also convert basements or garages into smaller apartments, which can be used as guest rooms for friends and family, or rented out to tenants. Before embarking on a home renovation project of this magnitude, check with neighbors that may have done major renovations to their homes and ask for contractor recommendations.
Adding another bathroom
Only have one bathroom in your home? Because most homebuyers are uninterested in purchasing a home with only one bathroom, it can be beneficial to add an extra one. According to HGTV, an 80 – 130 percent investment return is likely from a bathroom addition. Not sure where another bathroom would fit in your home? In addition to extra rooms or underutilized areas, consider other parts of the home, such as large closets or under the stairs. The cost of adding an extra bathroom can vary, as does any home remodeling project, and will depend mostly on the types of additions and accessories you want to add, including the cost of these individual items. You can cut down on costs by purchasing floor model sinks and toilets, which are often reduced in cost drastically. You can also find great prices on tubs, toilets, fixtures and doors if you visit a nearby outlet store, such as Habitat for Humanity ReStore.
Building a deck
Having an outdoor living area makes a property more alluring, particularly in areas where the weather is pleasant all year. You can anticipate anywhere from a 65 to 90 percent return on your investment when you build a deck. The price of this project can differ widely, and depends on various details, such as the size of the deck you will be building. Other features, such as stairs and built-in seating, and the materials that are used will all have an impact on the cost for building a deck. The cost can range anywhere from $1,200 to more than $10,000. A good chunk of this cost could be eliminated by completing the project yourself, but you should avoid taking on such a project if you are inexperienced. When shopping around for a contractor, be sure to check with friends, family, and neighbors for recommendations, and compare costs to ensure you don’t have overpay.