Doing a real estate renovations is the best way to add value to a home. The problem is that many people make the mistake of using current trends and focusing too much on what they like or want rather than what others want. To get the maximum return on investment (ROI) when doing a home renovation, you need to stick with the classics and the basics.
Focus on the Outside
The first impression that people get when they visit your home comes from what they see outside. That is why you should maximize your return with exterior renovations. Replacing old and damaged siding on your home can get you back more than 92% of what you spent on the project. If buyers think that your home looks dirty or dingy from the outside, they are less likely to go inside and see the rest of the home. Repairing or replacing your siding, adding a new patio or porch and applying a fresh coat of paint can help your house look better from the street.
Make Your Home More Efficient
Owning a home is expensive, and many buyers today will ask questions about routine maintenance and the cost of owning that property. Making your home more efficient is one of the best renovations you can do. If you have an older home, you might hesitate before replacing the old windows that match the historic feel of the home, but those new windows can cut the cost of heating and cooling bills by $400 or more every year. When you replace your front door with one made from steel, you can get back more than 96% of what the door cost and keep drafts out.
Stop Leaks
One of the first things that buyers look at when doing a walk through of a home is the roof. A leaky roof will make buyers either walk away or put in an extremely low offer because they think the house needs a lot of work. Even if you do not see water dripping from the ceiling, you may still have one or more leaks. As the roof leaks, it causes water to build up inside the ceiling. This can cause brown and black spots to form along the ceiling or in the corners of the room. You may notice the ceiling bowing in spots or cracking too. Depending on the amount that you spend on a new roof, you can get back even more than it cost.
Go Small
Many people think that they need to make major changes when renovating their homes or before putting those properties on the market, but you can make a big impact when you go with some small changes too. The more money you spend on a project, the less you will get back. Doing a kitchen renovation that costs $25,000 to $30,000 or more will net you a smaller ROI than if you did a project that cost half as much. Look for simple changes you can make that have a good impact like painting the cabinets instead of replacing them and installing a new backsplash.
Stick to the Classics
When you follow the current renovation trends, you risk making changes in your home that will look dated after just a few years. Sticking to the classics creates a space that looks better for longer and still adds value to your home. You can use neutral colors when picking out new flooring and stick to a basic oval, round or square shape when adding a new swimming pool. With swimming pool financing and renovation loans, you can make all the changes you want to make without spending as much money upfront.
Getting the maximum return on your investment when doing home renovation projects requires that you make smart decisions. Making small decisions, focusing on the outside and doing things like repairing your roof will help you get more money back in the long run.
by: Dennis Hung
Tags: article, business, Real Estate Holdings, Return on Investment
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