Renovating your home is all about adding value to the property. But it can be a jungle out there. Following are seven ways to maximize the return on your renovation investment so that you see a payback and not a loss when you sell:
1. Make Your Kitchen or Bathroom Sing: A sparkling up-to-date kitchen or bathroom with high-end materials, lots of moving-around room and a neutral colour scheme will net you a return of between 75% and 100%.
2. Change Up Your Surfaces: Painting the inside or outside or both is an inexpensive fix with a big payback of 50% to 100%. Even better, replace the siding. It’s an excellent way to add value to your home.
3. Install Hardwood Floors: Some experts say you’ll get a return of only between 50% and 75% for taking up the old carpeting and laying down hardwood or high-end laminate, but anecdotally real estate agents say clients are looking for hardwood and that old, stained carpets may be a deal breaker.
4. Renovating the Unglamorous: Replacing a furnace or roof actually pays off big-time, with a return of 50% to 80% of your investment.
5. Add-ons: Make the attic into a bedroom to die for, or add a family room. You could get back 50% to 75% when you sell. Turning an unused room into a home office can also raise the value of your home in the eyes of potential buyers.
6. Outdoor Living: Buyers are looking for beautiful outdoor spaces. The addition of a deck alone can net you a 50% to 75% return. A sunroom can also add square feet to your living space, but don’t forget to make the transition between indoors and outdoors positively seamless.
7. Pay Attention to the Don’ts: Don’t follow the latest trend when planning your renovation. Go for timelessness in paint, fixtures and countertops. But don’t add a $100,000 kitchen to a $250,000 house and expect to recoup your investment. A renovation that suits your house and is done well with quality materials will make your family happy while adding value for future buyers.