How Home Improvements could Increase Home Value

The following article on home improvements is written by one of my readers, Miss “E” from the United States of America. While this site primarily focusses on achieving financial independence in Europe, it can’t hurt to learn from our friends across the pond, can it?

Now some of the projects listed out here are very American in nature and are not that feasible in a lot of European countries. Still, it was nice to read and I would like to share it with you guys.

If you also want to try out blogging for free, without the hassle of setting up a web site, fill in the form on this page. I’d love to make this site and audience available to you.

Now over to Miss E…

Home Improvements that can Increase Home Values

Before you can start on your home remodelling projects think of the return on investment you are bound to get in case of a resell. Most home improvements add to the value of a house, but others have a low Cost vs. Value rating that is not beneficial to the owner.

The resell value of most homes vary, and to better understand what your home is worth, check for its market value and the value of houses around it. Once you get an estimated value, budget for your renovations based on these figures. The best projects to select are those with high cost versus value.

So, how then do we define the concept of cost versus value?

The Cost vs. Value concept helps to justify the cost of a home improvement project and the benefits it brings to the owner. For example, garage renovations are an excellent remodel idea, but their cost vs. value rating is low. On the other hand, replacing your front door with steel is a value-adding project with cost recoups of approximately 74.9%. 

So, for a homeowner that is looking to add value to their home, what projects should you focus on to ensure an increase in the cost versus value rating of your home?

Replace your Front Door

Install a steel front door to give a new look to your home. The door is a curb-appeal for when you stay in the home or plan to resell. First impressions matter and a steel door will repay your investment with close to the same amount of cash investment. Steel doors are also more secure and give the idea of a well-maintained home to buyers.

Replace the Garage Door

Replacing that old, outdated garage door with a new steel one will make it easy to market your house and sell it in the future. According to Buffalo-based appraiser Jim Murrett, a new door can give the front of your house a fresh, clean appearance.

Apart from the curb appeal that comes with installing a new door, you are sure of less energy consumption due to better insulation units. Replacing garage doors is among the least expensive home renovation processes with a value of nearly the same amount as the cost.

Replace Vinyl Siding with Manufactured Stone Veneer

If your current exterior is made up of vinyl or clapboard siding, then it is time to give it a new look with manufactured stone veneer. Stone veneer is cheap to buy, install and can withstand different weather conditions. They are fit for a variety of exterior areas like the entryways, garage front way, knee walls or even chimneys.

Replace Roofing with Metal

There are four significant advantages of metal roofs; increasing your home value, better insulation, durability and fewer maintenance costs. The benefits have made metal roofing a preferred choice for most potential buyers. Over the past years, it has become easy to sell houses with metal roofing.

Wood Deck Addition

Your backyard would look better with a wooden deck out back. For better durability, treat, seal and rail the wooden decks. Wooden decks are less expensive and have the potential of giving you a better ROI than other composite materials.

Remodel your Bathroom

Sprucing up your bathroom with new tiles, showers, bathtubs, and sinks has the potential of increasing the value of your home. Making your bathroom accessible to people with different abilities like the old, or handicapped can also help in fast resell. Remodel your bathroom with functional spaces to fetch better market rates. 

Remodel your Kitchen

Most people like a modern looking kitchen. To increase the value of your home, replace old kitchen appliances with modern energy saving ones. Make your counters more appealing by using marble and quartz tops. Upgrade your sink, tiles, and cabinets. The value you will get for these minor changes will increase your returns to nearly the same amount of costs incurred.

But be careful, this home improvement can be dangerous. You might like that new shiny red kitchen, a potential buyer might not.

Keep Off Wrong Home Improvement Projects

Some projects have the potential of negatively impacting the value of your home. Whatever upgrades you give to your home, make sure it is not personalized. Use neutral home improvement ideas that are likely to be a favourite of many.

The following are projects that should be avoided if you want to add value to your home.

Converting Garages

Some people prefer having garages for their cars and for storing outdoor equipment. Most garage conversions will, therefore, not boost the value of a home or put extra bucks into your pockets.

Swimming Pools

Not everyone appreciates having a swimming pool in the backyard. Most people buying homes consider it a luxury and will not pay extra for it.

Exaggerated Renovations

Expensive remodels that are not in sync with your house decors will put-off buyers. As a homeowner, aim to renovate your house to a standard that is similar or close to your neighbours’. Exaggerated remodels may sometimes increase the value of a home, but they do not always translate to better returns.

Conclusion

Home improvements can help add value to your home if the right decisions are made. For better decision-making processes, refer to expert advice. It can never hurt to ask around for referrals. The right contractor can be hard to find.

Have you ever remodelled (part) of your home and increased the value doing so?

Leave a comment