As we mentioned HERE , there are quite a few factors that go into determining your home renovation project’s ROI, and likewise, there are some projects that offer a bigger return than others. A good rule of thumb to remember is that projects that expand the space you’re renovating are going to add the most value.
Here are our top 2 recommendations, bath and kitchen remodels and a curb appeal update.
Bath and Kitchen Remodels:
The bathrooms and the kitchen are the most used spaces in a home, and are a necessity to day to day function. Naturally, these are the rooms where renovation just makes sense. They can be the most expensive, but at the same time, you will usually get out of them what you put into them. In some of the hottest markets, this can mean a very large return, sometimes up to 100%. Keep in mind, this estimate does not really come into play if you’re simply doing an aesthetic remodel. It’s never a good idea to put more into your home than your market will bear. It’s called “pricing yourself out of the market”. For instance, expensive luxury materials would be wasted unless you are surrounded by similar houses. If your home actually needs a little sprucing up, and you’re doing a moderate remodel you can get a great return on investment.
Curb Appeal Updates :
Exterior renovation and landscaping can increase the beauty and appeal of your home as well as offer security and energy savings. A good rule of thumb is that you can expect to see an 80% return on this type of upgrade. New windows, siding, roofing, a paint update, these are all great options when it comes to remodeling the exterior of your home. Curb appeal can often be the single most important thing when it comes to drawing in potential buyers. This is important to consider if you ever plan on reselling your home. It’s the first thing people notice, and often determines whether or not they want to even look inside.
Examples of bad ROI from renovations :
Luxury, Aesthetic and Entertainment Upgrades rarely offer a good return on investment.
They are usually a matter of personal preference, and it’s best to try and appeal to as many people as possible when selling a home .
Some examples of unnecessary items would include, Theater rooms, Renovations with expensive materials, Sports courts, Pools/Hot Tubs, zebra wallpaper, mirrored ceilings, etc. I think you get my point.
Try to keep your renovations simple yet practical, and you will likely get a decent return on your investment.