To increase your home’s value with interior upgrades, you will primarily want to focus on projects that modernize the home, create more benefits for the homeowner, and increase or extend the safety of the home. Many home improvement projects can be costly so you’ll also want to focus on ones that a future buyer will pay more money for down the line- also known as your Return on Investment (ROI). Even if you do not have the intention of selling your home soon, interior design projects and upgrades can be important for your own well being or maximizing the joy that your home brings you. After all, with an investment as big as owning your own home, why not get the most out of it?
1) More Space
Finish that basement, add another bathroom or a sunroom, maybe double the size of the house! Homeowners want more space and every 1,000 square feet added to a home can boost the sale price by more than 30 percent. Bathroom additions return the most, according to Remodeling magazine’s report — an average of 86.4%. Attic bedrooms, family rooms and sunrooms had an ROI of 70-93%. Many people who are looking for a new home end up choosing to just add on to their own homes to make them more enjoyable and save on costs of moving. This is a great investment whether you are looking to sell or stay for a long time.
2) Minor remodels over upscale remodels
Opt for a minor remodel of a key room rather than a complete overhaul. For example, upgrade your appliances, replace cabinet doors, or switch out the countertops rather than knock down walls, replace the cabinets entirely, and change the whole fabric of the original design. When you work with what you have, you will not only save yourself some money in the moment, but studies show that the ROI is much higher for a minor remodel than a total remodel.
Average ROI for minor bathroom remodel= 102%
Average ROI for minor kitchen remodel= 98.5%
3) Kitchens and Bathrooms
Not sure where to start with your minor remodels? Kitchens and bathrooms offer the highest ROI of any remodels, oftentimes returning over 100% the original investment. However, when you only have one bathroom, it is much more lucrative to add a second one than to remodel the existing one (if you remember what we talked about earlier with adding space). In addition, a study at Florida State University found that adding a bathroom increased the sale price of a home by 8.7% which is more than twice the rate for adding a bedroom. It is also important to note that if you are not planning to sell right away, the best course of action for remodels is to design your home in a way that you will get the most use and enjoyment out of. Don’t shell out for a luxury kitchen if you don’t like to cook. You’ll come out on top if you actually get enjoyment out of your remodels for years to come rather than predicting what someone else will want.
The main priority of the homeowner should be to make the home safe. A potential buyer will not care about a super expensive kitchen if the roof is leaking. It is best to start with projects that secure the foundation of the home and make it livable before shelling out for cosmetic improvements. Over 70% of home buyers know when they purchase a home that they will be doing some sort of remodeling and will be much more likely to buy a home where they do not have to spend their money on making it livable first. ROI for home improvement maintenance projects varies depending on location- some are more necessary in certain regions than others.
5) Decks, patios, or porches
Adding one of these increases the livable space of the home while being cheaper than a brand new room addition. They can increase visual appeal of the outside of the home by drawing the eye towards beautiful decorations and plants or distract from less appealing features. They also offer up the opportunity for more activities from the comfort of home and as stated before, the best upgrades are the ones that you’ll get the most enjoyment out of. They also have a great ROI at selling time, averaging at about 90.3%.
Remodeling any part of your home is a big project and can be pricey! Make sure that you pick projects you will get tons of enjoyment from and keep in mind that oftentimes you can get a lot of that money back when you sell. For your home improvement financing needs, Viking Capital is here to find you a great loan and help make your dreams a reality. Apply now at vcloan.com and you will hear back from your personal loan officer within 1-2 business days.
There are also a lot of exterior home improvement projects that can increase your home’s value and we have a blog about them too! To read more, head to EXTERIOR HOME IMPROVEMENT PROJECTS THAT INCREASE VALUE.