Calculating Value with Home Renovations
Home renovation reality shows have inspired many homeowners to consider costly upgrades for their own homes. While many home improvement projects are worthwhile, it’s important to know which ones are worth it from an investment standpoint.
Here are a few key considerations to keep in mind when you’re deciding on a renovation project.
Value Added (or Subtracted) for Future Buyers
Many buyers won’t even look at homes that lack the right number of bedrooms, and a garage ranks as one of the most popular amenities in newly built homes.
Remodeling magazine’s 2016 Cost vs. Value Report showed that replacement projects, like changing a front or garage door, offer serious gains.
Which large projects pack the most punch when it comes to adding value? Two-story additions, master suite upgrades and major kitchen remodels top the list.
Your Neighborhood’s Market Conditions
Every neighborhood has a price threshold of what buyers are willing to pay, so a $75,000 kitchen remodel may not be worth it in a neighborhood where home values top out at $200,000.