Home remodeling is an excellent way to boost your property’s value. Not only will you see a great return on your investment when you decide to put it on the market, but you’ll also get to enjoy a better living space while you’re still there.
With the right renovations, you’re nearly guaranteed to recoup the costs during a sale. But not all renovations have equal payback. Depending on your location and the neighborhood you live in, some might not add value at all. For example, luxury upgrades are great, but they don’t usually yield the highest return on investment.
As a general rule, stick to upgrades that enhance functionality and add square footage to your home. Here are some ideas:
- Kitchen and bath remodel
- HVAC conversion or upgrade
- Siding replacement
- Hardwood flooring refinish
Kitchens and bathrooms are the most heavily used spaces in any property so investing in their renovation makes sense. An upgrade improves the space and generates interest from prospective buyers. Think of what you valued the most when you were first looking for a property—upgraded kitchens and bathrooms were likely among the top.
Although such home improvements can cost a significant amount of resources, labor, and construction, you’re guaranteed a solid return on investment. A minor kitchen remodel typically yields an average return of 85.7%, according to Remodeling. A bath renovation can provide a return-on-investment of 66.7%.
An HVAC system upgrade is one of the smartest remodeling projects you can do in preparation for a sale. It’s very likely that potential buyers will inquire about the age of your HVAC system during the homebuying process, and an outdated or broken system is a non-starter for the majority of prospects. And while the costs may make you hesitate, upgrading your HVAC system is actually one of the safest bets you can make, as it can yield a return of up to 71%.
Improving your property’s curb appeal is a great place to start with renovations. According to data from Remodeling, siding replacement can get you back as much as 94% of upgrade costs.
However, this depends on the material. For instance, swapping out 1,250 square feet of siding with new vinyl might cost an average of $16,348. With current resale values, you can recoup as much as $15,485. Opting for fiber-cement may be pricier, but you can still recover a good 88.5% of the expenses.
If you’re looking to breathe new life into your living space, refinishing your floors is a great way to do it, and you’ll be able to yield a significant return once you sell. According to the National Association of Realtors (NAR), homeowners can recover more than 100% of their remodeling costs from refinishing hardwood flooring. Installing new wood flooring can also generate a similar return on your investment.
If you want to learn about more ways to increase your home’s value, get in touch with me, Frank DeZao at 201.953.9376 or through email. As a Realtor specializing in homes in Bergen County, Morris County, and Essex County, I’m more than happy to help you navigate the local real estate market.