There are a ton of things that you can do to increase the value of your home. Some of them may yield a higher return on your investment than others. However, according to Remodeling magazine’s site the return at resale for the 27 top projects in 2016 resulted in only an average of 64.4% recouped investment dollars. So you may not see a dollar-for-dollar return but there are renovations that will increase your value. Categorically they would be updates that add space, add quality, and/or add charm.
One of the best things that you can do to increase the value of your home is to add additional space. This can be quite literally by building an addition. It can also be by finishing off space that’s unfinished such as a basement, room over garage, or attic space. Both of these items will increase your home’s square footage. Traditionally, the more square footage you have the higher the list price.
Square footage alone isn’t important unless it’s functional space. So, another way of “adding space,” is by creating storage solutions to lean out parts of the home and create more usable room. This can be done by adding organizational systems to your closets, home office, and/or garage. Eliminating clutter and freeing up floor space can make the home “feel,” larger. Organizing your attic or purchasing a shed for long term storage can also add space back to the living areas.
Another small way of adding usable space to your home may be by adding a closet to bonus room, basement, or room over garage. If the room can safely be entered/exited (two forms of egress), the addition of a closet may bump up your classification of bedrooms. More bedrooms may result in a higher asking price.
Buyers nowadays have a high appreciation for items of high quality. Any renovation that you do that increases the quality of finishes will certainly be perceived as valuable to the next homeowner. Certainly, changing out laminate countertops to granite, replacing old kitchen appliances with stainless, putting a new roof on, replacing older windows with new, and so forth and so on will increase the marketability of the home. These are all products that are of higher quality than before and people know it.
A ton of buyers will buy a home based on the way it feels. Most purchasers would describe this by desiring a home with charm. An owner can add charm to a house in several different ways. One way is by either refinishing or changing out the flooring throughout. Pulling up old carpet or linoleum and replacing with hardwood instantly makes the home feel different and adds visual appeal. Bathroom renovations are another place that old materials can be replaced with new or repurposed fixtures to create charm. Lastly, the exterior of the home can bring great delight to a comparative shopper. Freshening up the landscaping, laying down new mulch, planting blossoming flowers, and staging with patio furniture is just one simple way of creating charming curb appeal.
As you are considering the next possible renovation be sure to think through if it’ll add space, quality, or charm to your house. The most profitable category is likely the ones that increase your space and may take the highest priority. For more specific projects and how they might increase your value be sure to check out What Improvements Increase the Value of Your Home.