Many homeowners are under the assumption that the more amenities they have in their home, the more value it has. While such luxuries as pools and elaborate hot tubs are nice to have, they can also work against you if you are trying to sell your home.
This is largely due to the fact that some amenities require continuous upkeep, which means additional dollars every year. If you are a homeowner looking to increase the value of your place, there are certainly ways to do so and remodeling projects are definitely one of the ways. However, you have to be careful on what you decide to remodel.
Both necessary improvements and many luxurious amenity upgrades alike may increase the value of your home. The trick is knowing the difference. A general rule of thumb is that you could spend about 25 percent of the home’s value updating your kitchen, and about 12 percent updating a bathroom, according to U.S. News & World Report.
“Not all improvements boost your home’s value.”
Improvements to boost home value
If you are looking to give your home a facelift, a great place to start is the kitchen. The kitchen is where homeowners spend a great deal of their time, whether preparing their meals or entertaining guests. More and more the idea of a bar and seating area in the kitchen is preferred over the traditional notion of it being simply a place to cook food.
According to Bankrate, kitchen appliances go a long way in impressing potential homebuyers. For one, modern appliances are attractive and have a clean feeling. Additionally, installing energy efficient appliances promotes the idea of saving money on monthly expenses. If potential homebuyers feel that they could save money by living in this home, then they are likely to pay a little more for it.
Another great way to boost the value of your home is to improve your lighting. This could mean either putting in better windows or replacing light fixtures. Each has its advantages. Appropriate light fixtures can make a room feel brighter and spacious, and modern windows, in addition to being energy efficient, can be uplifting when sunlight is pouring in. If you don’t have current windows that are large or maybe you just don’t feel that you have enough windows at all, then this is something to consider changing.
Improvements that could deter some buyers
The point of upgrading your home is not only to enjoy it more, but also to boost its value. However, if you spend a great deal of money focusing on the wrong things, you might put yourself in a worse position.
For many, a pool might not be a best investment. Not only are pools costly to put in, but they require constant maintenance. Whether you live in a warm climate or not, when the pool is open you are paying for it. Though depending on your location and the buyer you are pursuing, a pool could also be a sound investment. Make sure you are aware of what is popular in your area before making a decision.
A pool is not the only project that could deter potential buyers; it is possible to make improvements that will simply cost you more than you can get back. For example, a master bedroom addition is often something that homeowners want for their comfort, but not something that is worth the money when they decide to sell their home.
It can be tempting to want a large walk-in closet and a new bathroom in the master bedroom to make the space a suite, and according to MoneyTalksNews, if this is common in your area then you might be able to recoup some of the cost. The source also noted that the resale value of projects of this nature is often only about 50 percent of what the construction and materials cost.
The bottom line is that remodeling should be about enriching the quality of your home. If your sole purpose is to live a lifestyle you want, regardless of investment purposes or how much you will be able to sell the home for at a later date, then consider your finances and remodel your home as you please.
On the other hand, if you are thinking of what future potential homebuyers will think, and be willing to pay for, then give your home remodeling projects some serious thought. Don’t get ahead of yourself, take a look at your finances and do something that will improve the value of your home, whatever that means to you.