Home Renovation - For Love or Money?
This week, we welcome guest author, Nathan Roberts, owner of Roberts Construction Services.
One of the most-asked questions we get from clients is, where should you spend your renovation dollars? What gives you the biggest bang for your buck? What will yield the highest return on investment when reselling you home? These are all great questions that should be considered before renovating or building a home. The biggest question we think you should ask yourself is, is it for love or for money? Simply put, are you renovating to receive top-dollar from your home when you sell or are you renovating to make it the home of your dreams?
FOR MONEY If you intend to sell within about two years, consider these upgrades for maximum return on your investment:
Painting. This update gives a quick and relatively inexpensive facelift. On average, you can recoup about 200% of what you spend when you sell.
New Roof. An older roof can be a major concern for buyers. Investing in a new roof will generally bring you back 100% or more return on investment.
Refinished Floors. If you have hardwood floors in your home, refinishing can bring you a return 100% of what you spend. Replacing floors will bring you about a 90% ROI.
Bathroom Addition or Renovation. Additional bathrooms are a huge selling point that can bring you back about between 95% and 105% of what you spend. A bathroom remodel will bring you about a 70% return.
Minor Kitchen Renovation. A more modern-looking and function kitchen will be attractive to buyers. You'll recoup about 78% of what you spend when you sell.
Additional high-return items include:
Replacing the front door (about 70% ROI)
Adding a deck or patio space (72% ROI)
Replacing windows and doors (68% to 72% ROI)
Replace HVAC (95%)
If you plan to stay in your home long-term and are looking to better enjoy the space, these upgrades might not yield a high return when it comes time to sell but will score major points with you and your family.
Updated Floorplan. If you love your location but don't love the layout of your home, updating the floor plan can help you maximize space and flow. You'll feel like you're in a new home when you renovate to make your home function for your needs.
Major Kitchen Renovation. They say the kitchen is the heart of the home. If you love to cook and entertain, a modern and function kitchen will pay dividends when it comes to your enjoyment of the space.
Master Suite Addition or Renovation. If this is your forever home, you should love your bedroom with the space, features, and storage to make you happy.
Custom Closets. Updated and highly functional closets maximize storage space and make it easier to stay organized.
Home Theater. This is a room that you can enjoy year-round and requires very little maintenance.
Outdoor Kitchen Addition. Again, if you love to cook and entertain, an outdoor kitchen is a great investment.
If you’re not sure whether a specific upgrade is right for you, let us help. Contact Roberts Construction Services for expert advice and support on every aspect of your renovation or custom build.
Note: ROI values taken from the 2020 Cost v Value Report from Remodeling Magazine. Numbers are national averages.