Updating or remodeling your home is about creating a more comfortable, charming space that you and your family can enjoy. Sometimes, you need more space. Other times, you’re ready for a change to match current trends. Whatever your reason for making changes, don’t forget about the resale value of every project you do.
The fact is, not all home updates are worth the money. Unless you really, really want it and money is no object, you’ll be disappointed that you lost money on your renovation when it comes time to sell the house.
It’s a strange economic principle, but spending $20,000 worth of updates on a home that’s worth $200,000 does not mean that you can turn around and sell it for $220,000 or more – that is unless you’ve considered upgrades that offer the highest resale value.
Here are some renovations worth doing when trying to raise the value of your home.
- Adding a Bedroom
You’ll spend between $50,000 and $100,000 adding a new bedroom, but it’ll add $50,000-$80,000 to your property value. Most people get back at least 100 percent of what they put into this renovation, if not more.
The property management company Green Residential suggests when adding a bedroom, to consider the existing layout of your home, local building codes, costs, needs of your family, HOA restrictions, and other factors that could influence the construction. You also have to make sure you have enough property to support the addition.
Note that this is a time-consuming update as well, and your home will be a construction zone for a few weeks until it’s finished.
- Door Replacements
According to Bankrate, two of the best things you can do for your home are replacing the front door and the garage door. A new garage door improves the curb appeal of your home while improving energy efficiency if it’s a connected garage.
A front door replacement also makes a big difference, particularly if you get a 20-gauge steel door. There are many benefits to this update, including increased safety from both break-ins and potential fire. It also makes the front of your house look much better and improves energy efficiency inside the home.
Both of these additions will cost you about $5,000 to install, and you’ll recoup between 90 and 100 percent of the value you put into it when you resell the house. If you can’t foot the $5,000 bill, even repainting your home’s orifices can raise values.
- Minor Bathroom Remodel
While a full bathroom makeover can be costly without recouping the full amount you put into it, a minor bathroom remodel is a great option. According to HGTV, the average individual recoups more than 100 percent of their value on a minor update.
A minor update might involve changing the shower tile, updating fixtures, painting walls, or adding a storage closet. You’ll keep the basic structure of the bathroom, but it will look more modern and work more efficiently when you’re done. This adds significant value without breaking the bank.
- Replace Windows
Windows are often overlooked when you’re considering updates. However, window replacements can add excellent value to a home. Not only do they improve the look of both the interior and exterior, but they also improve the energy efficiency of the home, something homeowners today love. The change will be subtle, but you’ll be amazed at how much of a difference it makes in the comfort and aesthetics.
Time Magazine reports that the average window replacement costs between $2500 and $7000 to do the whole house. Not only will you recoup the full value of this update if you sell the home within five years of installation, but you’ll also see huge energy savings every day. The average window replacement job saves households up to $450 per year on energy costs.
- Exterior Updates
Curb appeal has a strong impact on your ability to sell a home for the intended asking price. It also puts you in good standing with the neighbors, which is always a plus!
“Real estate agents say that the first impression counts the most,” NerdWallett analyst Holden Lewis told The Motley Fool. “And the first impression comes from what the buyer sees when the car pulls up to the curb.”
Experts recommend simple things like pressure washing, painting the front door, trimming shrubs, planting colorful plants, mowing the lawn, and refreshing mulch. Most of these updates will recoup 100 percent of their value while allowing you to enjoy the comfort of modern home.