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Your home is more than a place to live; it can be a lucrative investment. Whether you’ve owned it for a number of years, or recently purchased an older property, putting money into renovations and upgrades can significantly increase its value. What’s more, updating your home is likely to make it more appealing to a wider range of buyers and therefore make it easier to sell.
However, it’s important to note that not every renovation pays back so handsomely. Very trendy or low-quality finishes can turn off potential buyers. Use these tips to help ensure you get the biggest bang for your renovating buck:
Kitchens
Even if they aren’t gourmet cooks, today’s homebuyers are looking for a home with an up-to-date kitchen -- one that’s large and attractive enough to live and entertain in. Recent trends in kitchen design have favored stainless steel for cabinets and appliances, but some experts say it may be on its way out because of the perception that it’s a high-maintenance finish. You’ll likely get more for your money going with plain white, which looks clean and is practically impervious to trends. But make room in your remodeling budget for solid-wood cabinets, quality appliances and recessed task lighting. The cost of a minor kitchen remodel rings in at just under $15,000 -- but you can expect to recoup an average of 98.5 percent* of that investment in pumped-up resale value.
Bathrooms
If your home has only one bathroom, adding a second will add around $20,000 to its resale value and allow you to recoup an average of 86.4 percent of the cost of remodeling. Many buyers want both a soaker tub and a shower stall in the master suite. Spring for the clean look of a frameless glass enclosure and avoid colored sinks, tubs and toilets. Again, the watchword is white.
Bedrooms
Adding additional sleeping quarters will usually increase the resale value of your home by more than the cost of the renovation (unless your home already boasts four or five bedrooms). On the west coast converting a two- or three-bedroom house into a three- or four-bedroom house costs an average of $41,244, but adds $43,357 to its resale value. Across the country, expect to recoup an average of 93.5 percent of your remodeling costs.
Flooring
Hardwood reigns supreme. Installing new hardwood floors can increase a home’s value by up to 10 percent according to a recent survey of real estate agents across the country. But opt for mid- or light-colored oak or maple over dark and moody tones. And though wood-look floating laminate floors are somewhat cheaper, it pays to spring for the real thing.
Painting
A fresh coat of paint is among the easiest and most cost-effective ways to make your home more appealing. A recent REALTOR® report says it will typically give you around a 29 percent return on your investment dollar. But avoid picking vibrant, trendy colors. You may think a bright purple dining room looks stunning on the pages of your favorite home decor magazine, but it won’t suit many buyers’ tastes. It’s best to choose neutral colors that will have a wider appeal to potential future home buyers. Like an uncluttered home, a neutral backdrop makes it easier for house hunters to imagine moving in and decorating with their own possessions.
Backyard deck
Buyers want outdoor living space, not just an expanse of grass or a few flowers. Putting in a large, well-planned deck is a project with good payback, adding an average of 90 percent of its cost to your home’s resale value.
Before you undertake any home renovation, it’s a good idea to talk to a local REALTOR® or appraiser, even if you aren’t yet ready to sell. These professionals can advise you on whether the improvement you’re planning is likely to appeal to future home buyers -- and whether the potential payoff makes it a smart investment.
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Published on January 16, 2007Read full article at realestate.com