What Renovations Increase Home Value?
Here at FBC, we talk a lot about “building joy” in each and every remodel. Renovating your home should, of course, improve and add ease to your everyday life, but it’s also important to note how remodeling your basement, kitchen, or bathroom can add monetary value to your home. If you plan to sell in the future, you should be taking stock of what improvements can raise the asking price of your home.
If you’re purely remodeling to sell at a higher price point, your design approach will be much different than if you’re renovating for yourself. When remodeling your forever home, you’d be assessing your lifestyle, needs, and hobbies to customize a design to your day-to-day. For resale value, you’ll instead want to design spaces that appeal to the average homeowner. Your design style and renovation choices will work for a wider pool of tastes and general interests.
To get you started, here are some best practices and steps homeowners take to ensure their home renovation project adds resale value:
Rule Out Renovations That Don’t Add Resale Value
Contrary to popular belief, not all renovations add resale value to the property. Some projects may actually make it harder to sell if that feature potentially adds inconvenience to a buyer. Others are simply high-investment, low-return projects. According to Moneycrashers, these types of projects can include:
In-ground pools: Families with small children may see a pool as a health risk. Other homeowners may simply prefer a full backyard over a pool and pass on your home.
Over-customization: We love luxury products for remodels, and there’s nothing wrong with customizing your project to your liking. In fact, we encourage it! However, if you’re remodeling a space purely for the resale value, it’s important to choose finishes that appeal to a wide range of tastes.
Sunrooms: Coming in at about 50% ROI, sunrooms yield some of the lowest returns. Sunrooms also lack insulation, driving the energy cost for the entire home.
Specialty spaces: If you design a niche space for specific personal hobbies, like a crafting room or golf simulator, you may see a low return on investment when you sell.
Again, while custom rooms are a fantastic investment in day-to-day function for you and your family, it may not be a must-have for the budget-friendly buyer. We recommend committing to living in your home in the long-term when building custom spaces like these.
Make Sure No Square Foot Goes Unused
A nearly foolproof way to add value to your home is by remodeling an unfinished basement. While basement finishing is quite the investment, if you do it right you can see a 90% return on investment, on average, when you sell.
Unfinished basements are, more or less, an entire extra floor of your home that’s going unused. If there’s a home identical to yours whose basement is finished, that home would have a significantly higher asking price than yours. When renovating to sell, the rule of thumb is to make sure there is usefulness and value in every square foot of your home.
According to HGTV, to get the most from a basement finish, you should:
- Add a bathroom to the basement
- Keep the layout open, and avoid cramping
- Appeal to the average homeowner — avoid off-the-wall design and over-personalized areas
- Choose a trendy but neutral palette for your paint colors and finishes
- Make sure the design flows well with the rest of your home and alongside any other renovations
- Add an extra bedroom or a home office
- Create an open entertainment space, and consider adding a wet bar (a very popular feature)
Renovate Your Most Outdated Rooms
In most homes, the living room and kitchen form the first impression of your space. If your kitchen hasn’t been touched in decades, it likely looks outdated and can influence the rest of your home’s layout. Kitchen remodels, when done correctly, will “wow” the buyers walking through your home.
First and foremost, it’s important to compare the cost of materials against the value it adds. Homeadvisor suggests looking at your current home value and installing finishes that make sense for that value.
If the kitchen is far more high-end than other rooms of the home, buyers may pass on paying extra for that luxury feel. You want your kitchen to feel modern and updated, but you also want to see consistency in quality throughout the entire home.
Some ways to raise the price of your home include:
- Updating appliances
- Updating finishes, like cabinets, fixtures, and countertops
- Replacing flooring
- Adding a window above the sink
- Opening up the space/reconfiguring the layout
Pro Tip: If you’re looking to only replace your finishes, consider a kitchen update instead of a full remodel! Updates save on both cost and time, while still maintaining the quality you want in your kitchen.
Don’t Forget About Bathroom Renovations!
Bathrooms are the smallest rooms in the home, but don’t gloss over their potential! According to HGTV, adding a bathroom to your home can result in an 80-130% ROI. Even a minor bathroom remodel can yield over a 100% return!
Could your home benefit from an extra bathroom? For instance, if you live in a three-bedroom, one-bathroom home, buyers could pass on your property for not having that second bathroom.
First, see if there is space for a new bathroom. Measure any unused pockets of space, like closets and storage areas. Half-baths require about eighteen square feet, while full baths with a stand-up shower require thirty-five square feet. Are there walls in smaller rooms you’d like to get rid of? How else can you open up space in your home?
You can also choose to renovate your existing bathrooms. Like kitchens, the finishes and fixtures in bathrooms easily give away the age of the home. Opt for a bathroom remodel to reconfigure your space or expand a master bath. Bathroom updates through FBC allow you to simply remove and replace your finishes, giving it a beautiful modern feel.
Pro Tip: If you’re finishing your basement, consider adding a bathroom to give your space a feeling of completion and convenience!
Sell Your Home at the Right Time
Let’s say you’ve remodeled your basement, kitchen, and bathroom and are ready to sell your home. That’s great! However, while you’ve taken the right steps to add value for the next buyer, it’s important to gauge if now is the right time to sell.
Timing is everything. Get a feel for the current seller and buyer market in your area and thoroughly do your research before making any quick decisions. Should you continue to make renovations and live comfortably in your space until the time is right, or is now the best time to sell?
Basement, Kitchen, and Bathroom Renovations with FBC Remodel
Feeling inspired yet? FBC Remodel would love to be your partner on your next home project! Book a complimentary design consultation by contacting our Design Coordinator, Jenny. We’ll chat about your project, get you matched with one of our expert interior designers, and show you what’s possible.