There are two reasons that homeowners approach us for help with a renovation – to help them create the home of their dreams or to help them transform their space for potential buyers.
While we live for creating dream spaces, we also love helping homeowners invest in their space to attract buyers and help them move on to find a new home they love. Today we’ll take a look at the best renovations for resale value as well as how to estimate the new value of your home after a remodel.
General Rules for Adding Resale Value to Your Home
Before we get into the specific renovations that will maximize your resale value, let’s take a look at some things to keep in mind no matter what room you’re transforming!
Keep it Neutral
As a general rule, you’ll want to make your home appealing to a broad group of people who may want to purchase it. That means keeping wall, floor, and tile colors neutral. If you’re renovating your forever home, feel free to go crazy with purple walls or bright red tile! But if you’re renovating with the goal of selling your home, you’ll want to stick to white, cream, beige, grey, blue, brown, and black for any major home investments.
Choose Timeless Styles
Many people look toward the current trends and styles when renovating their homes. But when it comes to the best renovations for resale value, you’ll want to go with timeless updates that won’t go out of fashion next season.
Focus on Storage Space
No matter what room you’re focusing your renovation efforts on, add storage space wherever you can. Closets, cabinetry, and shelving are universally loved by homeowners and built-in storage can be a major selling point for your home.
Limit DIY Projects
While DIY can save you money, if you’re looking for the best renovations for resale value, you’ll need to consult the experts. Your DIY renovations may look fine, but when selling your home, passing inspection is just as important as making your space attractive to buyers.
Unless you’re familiar with current building codes and have followed them all to a T, you’ll likely find that your house has outstanding work to be done before it can pass an inspection. You don’t want to be caught off-guard and forced to make costly updates to bring your house up to code and complete the sale. It’s better to be safe than sorry, so always work with a trusted home renovation company on your projects!
Clean Up Your Curb Appeal
No matter how beautiful your home is inside, buyers can be tripped up by peeling exterior paint, cracked pavement, or an overgrown garden. Make sure the exterior of your house matches the interior in quality and style.
The Best Renovations for Resale Value
While the majority of home updates will result in a higher value for your home, there are a few renovations in particular that can make a massive difference when it comes to the sale price.
Dollar for dollar, bathrooms are the best investment you can make in the sale value of your home, with an average $1.71 increase in value for every $1 spent. They can also make a big impact on your daily life until you sell – there is nothing like a soak in the tub of a brand new bathroom! Keep your renovations neutral and family-friendly, and you’re sure to see a big return on your investment.
While kitchen renovations don’t bring in as strong of a return as bathrooms, they still add serious value and visual appeal to your home. The key is working with a designer who can perfectly optimize your space, so that the new owners of your home won’t go through the same process in a few years because the layout simply doesn’t work. Maximize storage, counter space, and room for entertaining for a timeless renovation that every homeowner will adore.
Adding square footage is another way to improve the resale value of your home. If your home’s kitchen and bathrooms are already in good shape, an addition is one of the best renovations for resale value.
When it comes to additions, keep them as modular as possible for the next homeowner. While you may be tempted to add built-in bookshelves or other permanent features, leaving the room as a blank canvas provides flexibility for the future. A simply decorated room can become a home office, playroom, spare bedroom, or even pantry.
Smaller Home Improvements That Add Value
While you’re saving up for a big kitchen or bathroom remodel, you may want to tackle some smaller projects in your home. Here are the best renovations for resale value that can be completed in a weekend (or tacked onto a larger renovation project).
New Front Door
An old, peeling front door can make a bad first impression. Having a brand new door installed in a pleasant color can help homebuyers fall in love with your home before they even walk inside. While you’re at it, consider replacing and upgrading your garage doors and any other exterior doors to the home as well.
While it may not be as exciting as a shiny, new kitchen, a new set of energy-efficient windows will help potential buyers cross one more worry off their list. When it comes to long-term investments like windows, focus on function with high-quality casements with double-paned glass.
Is Home Remodeling Worth It (With a Sale on the Horizon)?
If your home is outdated or in disrepair, home remodeling can make a huge difference in your sale price and overall profit on your house. Even if your home is in good shape, you may have noticed logistical issues with the layout and function of your spaces. Oftentimes these problem areas are the first things potential buyers notice and they can sour a showing quickly.
Remodeling is also a great idea even if you don’t plan to sell your home for several years. This way, you’ll be able to enjoy your improvements and still get value out of them when it’s time to sell.
How Can I Estimate My Home’s Value After a Remodel?
There are a few ways you can estimate how your renovations will impact the sale price of your home. First, you can pay for a home appraisal company to perform a formal appraisal. However, appraisals typically cost a few hundred dollars and sometimes aren’t worth the trouble unless you’re actively trying to price and sell your home.
You can also calculate your home’s new value yourself with a simple equation:
Your home’s estimated value before renovation x (70% of the cost of your renovations) = Your renovated home’s value
While this method isn’t perfect, it will give you an estimate of what your house is worth. You can also consult with your real estate agent who can adjust this number based on the current market, your location, and many other factors.