What Renovations Add Value to Your Home?

A home’s value is in the eye of the beholder. The same goes for its renovations. What appeals to one potential buyer may not to others. But some remodeling projects generally help.  

Before you decide what to do, research prices for homes in your subdivision. “If they top out at $500,000 and yours is already $475,000, you may lose money if your project is more than $25,000,” according to a Forbes.com article on increasing your home value.

If you need to remodel, consider these projects that are likely to please buyers and add to its purchase price:

• Insulation – “Making sure you have sufficient insulation is the biggest item that can increase the value of your home,” says Pat Quigley, Senior Vice President of Town and Country Bank. “It will appeal to buyers and reduce your utility bills.” Many prospective buyers want to see a home’s utility bills from the past two years. To learn if you have enough insulation, the U.S. Department of Energy recommends getting a qualified home energy auditor or doing it yourself (it tells you how). In Springfield, City, Water, Light and Power provides energy audits.
• New Roof – The National Association of Realtor’s (NAR) 2019 survey says you’ll get back all of your costs for a new roof and more when you sell your home. Your return on investment will be 107%. “Many realtors have told me that if a potential buyer sees a problem with the roof, it immediately reduces the home’s value a great deal because they will have to redo the roof, which can cost $10,000,” Quigley says. If your roof is in good condition, leave it alone.
• New Hardwood Floor – “As homeowners grow more environmentally conscious…natural wood floors are becoming more popular,” states Realtor.com. Installing a new hardwood floor will definitely pay off, according to the NAR survey, which calculated that your return on investment will be 106%. However, it found that you’ll lose money if you refinish a tired hardwood floor.
• Garage Door – If your door looks bad, replace it. Curb appeal is crucial. If yours doesn’t work, replace it. “The national average is that you will recoup 94% of the cost when you sell your home,” Quigley says. “But if your garage door looks and works fine, keep it because you may not get that much of a return.”
• Kitchens and Bathrooms – “You hear that those are important to update in order to sell, but your taste and a future buyer’s may differ,” says Quigley. “You’re supposed to get 64 cents return on value for every dollar you spend updating a bathroom, but it will depend on what you do and the buyer’s taste.” HGTV.com recommends doing a minor bathroom remodel to “replace the tub, tile surround, floor, toilet, sink, vanity and fixtures” and says the return will be 102% on your costs.
• Windows – Windows are like roofs, if they are attractive and functioning properly, let them be. You’ll get back about 72 cents for every dollar you spend replacing windows. “Ask yourself if you’ll be in the house long enough to justify that cost or if you’re putting that money in just to try to sell the house, because you’re not going to get that much bang for your buck,” says Quigley. Keep in mind, however, that leaky windows will cost you and a future buyer in utility bills.

If you’re considering selling, you can ask realtors to tour your house and give suggestions about how to improve its salability. Search for articles about home buying trends and make sure your home’s front is attractive. Curb appeal can make or break a deal. For additional information about renovations and your future home buying needs, contact one of our experienced mortgage lenders today!