There are many investment home renovations that boost value. Of course, basic renovations such as new siding, windows, or roof are more likely to recoup investments than traditional room remodels. However, most buyers assume basic components like the roof, plumbing, and HVAC systems work properly. Therefore, homeowners must decide between investing in these basic systems, or remodeling entire rooms for more noticeable valuation impacts. As a homeowner looking to invest in their property, you should strategically consider the potential costs and returns of any renovation project. Many home renovation loans finance remodeling. In this post, we will discuss several investment home renovations that boost sale value.
Kitchen remodels deliver significant value to investment homes. Typically, the kitchen is the first room to be evaluated by any potential buyers. Therefore, think about the kitchen’s layout and workspace. Ideally, the spaces between your cooking areas, sink, and dishwasher should create a seamless, effortless workflow. Of course, homeowners spend large amounts of time in their kitchens. Therefore, this layout has a drastic impact on your investment home’s valuation and buyers’ purchasing decisions. Additionally, with an effective layout, buyers can easily plug in newer appliances, cabinets, countertops, sinks, and more as necessary. Surely, kitchen remodels provide intrinsic value to any investment home.
Second, deck additions provide another value-boost for any investment home. Of course, new deck installations add to a property’s assessed value. They also add to a property’s tax basis, since they are considered new living space. You can install a new wooden or composite deck. Depending on the materials chosen, the costs can range from $10,000 to $20,000. However, you can receive upwards of $20,000 in additional value when selling the home. Notably, you can leverage many home renovation loan options to secure this capital. Additionally, you’ll want to choose a deck that adds to the beauty of the home and fits with the neighboring properties as well. Certainly, a nice deck addition will have a promising ROI for your investment home.
Third, finished basements offer higher valuation to your investment home. As research suggests, high income buyers prefer home’s with a finished basement. This can significantly impact their decision to pay for a home’s asking price or above. While renovating a basement, add heating and cooling for more living space. The additional space can bump your home into a higher price bracket. In fact, by finishing a basement, you can increase established asking prices and valuations by up to 20%. For example, in a home valued at $250,000, a finished basement may add up to $50,000 to the asking price. Certainly, a finished basement provides more valuable space to your investment home.
Next, replacing windows boosts the value of your investment home. Of course, new windows drastically improve the energy efficiency of your property. Install new windows to eliminate drafts, cracks or leaks. By eliminating these imperfections, you reduce heating or cooling costs significantly. Your impact on energy costs and overall home valuation depends heavily on the windows you choose. Notably, you should choose the most energy efficient windows possible to offset installation costs with heating and cooling savings. You often impact buyer’s purchase decisions with these efficiencies and cost reductions, as well. Definitely, new windows improve your investment home’s value and energy efficiency.
Reimagine A Room
Finally, reimagine an existing room to improve your investment home’s value. You save significant capital by remodeling an existing room instead of adding new ones. To maximize renovation ROI, remodel unused rooms such as the attic, empty bedrooms, or garage. This way, you lend these rooms versatility to meet the unique needs of any prospective buyer. Of course, this versatility drastically impacts the buyers’ valuation and purchase decisions.You can provide this versatility by reimagining your attic as a craft or play room for kids, for example. Additionally, there is a lot of remodeling design software that can help you plan these projects. Assuredly, room reimagining is an essential value-boosting investment home renovation.
There is a myriad of renovations that boost investment home value. For example, kitchen remodels provide significant intrinsic value to any home. Second, a nice deck addition will have a promising ROI for your investment home. Third, a finished basement provides your investment more valuable space and square footage. Next, new windows improve your home’s value, energy efficiency, and curb appeal. Finally, room reimagining is an essential value-boosting investment home renovation. Of course, these renovation ideas lead to drastic investment home value boosts.