Can You Really Expect Renovations to Increase Your Home’s Value?
What’s the purpose of your home renovations? It might be a really small project, or it might be a really big one. Whatever the size and scope, you must have certain reasons for embarking on the project. Maybe your reasons are centered more on your own lifestyle, or meeting a practical need. Maybe this is a large-scale project you’ve been thinking about for a long time, like building your dream kitchen. On the other hand, it might be something you’re doing purely for market appeal and property value. This might be the case if you’re planning on selling or renting your property soon.
Property value in particular is something people think about quite a bit when considering any major investment in home renovation. After all, if you’re going to spend all that money, you want to get something back. In some cases, enjoyment and lifestyle improvements are big part of the equation. People aren’t concerned so much with property value increases — as long as home renovation doesn’t actually decrease property value (we’ll get to that in another post).
But the majority of homeowners are going to want at least a rough idea of how much return they can expect in terms of market value. Many popular home renovations don’t necessarily increase the market value by much, but they do increase buyer appeal and marketability. On the other hand, appreciating property values could mean that renovations you accomplish now will be worth more and more as the years progress — especially if they’re done by a quality professional with years of experience.
So what’s the bottom line? Can home renovation actually increase property value?
There is no simple answer to this question. Certain home renovations (such as siding, floors, insulation and roofing) tend to generate a better ROI in terms of property value. Some of the biggest crowd pleasers, such as renovated kitchens and bathrooms, often add appeal to a home (including lifestyle benefits for the current occupants) without necessarily adding market value.
A great deal also depends on whether the renovation was designed and performed by a truly skilled professional. If you have a renovation with shoddy workmanship and/or materials, you can expect a low ROI or even a negative effect on property value. If your renovation is handled by a reputable pro, you can expect excellent results. If you’re renovating specifically to be able to sell your home, talk to a real estate agent and/or a home renovation contractor for information and knowledge about what kind of project will best help your cause. Making your needs and goals clear to anyone you work with is one of the key to a successful home renovation.
What really matters in home renovation
Increased property value is certainly an important consideration, and a wonderful result if you can get it. The first step toward a lucrative project is choosing something relevant, something that really makes a strong improvement in an area of your home that might be a bit week. The second step (which can actually come before the first, if you seek professional advice before choosing a project) is seeking the help of a qualified home renovation company who will execute your plans to the highest standard possible.