A house is typically the biggest investment we own – and most people love to add our personal touches to the house to make it a home. However, when it comes to selling, we want to make sure those touches have added value, and not taken away from it. Here are the top 3 renovations that add value, and a few that don’t!
Renovations that add Value:
- Kitchen Remodel
- Outdoor Structures
- New Flooring
Let’s dive into how these 3 things add value.
Commonly known as the heart of the house, the kitchen is typically the most expensive upgrade, but it makes the whole house look so much newer and adds value. Changing the cabinets, countertops, and appliances will add value to the home since it is a complex renovation, and with today’s buyers, a functional kitchen will make your home stand out. With this renovation, you will get the most bang for your buck from upgrading a kitchen that is over 15-20 years old.
With great weather in our summers, people love to host parties, events, and spend a lot of time outdoors. Outdoor structures like decks, fire pits, and a private fence will spruce up the home and add value when it comes to selling. Doing this introduces a whole other part of your home that is made for relaxation and enjoyment.
Rip out those old carpets and replace with laminate, vinyl plank, or hardwood! New flooring will completely transform the look of your home, and it’s easy to get done. With upgraded flooring, the entire home will look newer and cleaner. Another benefit of doing flooring is getting rid of all those creaks by having the installer level the floor or screw down the sub-floor before placing the new flooring. Doing this will add value to your home when it comes time to sell.
Renovations that do not add Value:
- Overly high-end Upgrades
- Extending a Room (losing a bedroom)
- Smart Home Features
Let’s uncover how these 3 things will typically not add value.
Overly high-end Upgrades:
Let’s be careful not to go overboard. If you want to upgrade for your own taste, we encourage you to go all out! However, if you are worried about recouping the cost of those expensive upgrades when it comes time to selling, avoid this. Handmade designer wallpaper, a $20,000 refrigerator, a $5,000 bathroom light fixture will typically not add value to a home. Choosing good quality is important, but keep in mind of what truly adds value for future buyers of your home.
Extending a room (losing a bedroom):
Many people will amalgamate 2 rooms into 1 to create a massive bedroom with a large ensuite and a walk-in closet. This will reduce the number of bedrooms in your home which could potentially place you in a different market. If you make a 3-bedroom home into a 2-bedroom home, you may see diminishing values…but if you have 8-bedrooms in your home to begin with, then the negative effect will be limited.
Smart home features:
Automatic window coverings, expensive smart speakers throughout the home, and smart switches can be a great feature to have in a home, however, these do not typically add value. It’s great to have a security system, a smart doorbell, and a thermostat, and those are upgrades that are relatively cheap. However, the uber-expensive smart features may have value to you, but that value will not be felt by future buyers of your home.
Renovations are a very exciting process of adding your own personal touch to your home. However, most of us want to make sure the money we invest into our homes will be recovered when it comes time to sell. Follow this guide and you should be able to add a ton of value and avoid the things that don’t!