With a full kitchen renovation, homeowners can recover about 59% of the cost, and a new master suite will generally return 50%, according to a study by the National Association of Realtors and the National Remodeling Industry Association. But the biggest benefits come from less flashy projects. Replacing vinyl siding with stone siding on a part of your home, such as an entrance, can improve the exterior of your home. The average cost estimate represents 36 linear feet of thresholds, 40 linear feet of corners and a block of addresses, and materials including two layers of water resistant barrier and corrosion resistant battens and fasteners.
This project can recover a little more than 92 percent of its cost. Then, subtract that from the likely market value of the home after renovation, extracted from comparable housing prices in the neighborhood. Then deduct at least another 5 to 10 percent for extras you choose to add, unforeseen problems and mishaps that need to be resolved, and inflation. What's left should be your offer.
Whether you sell or renew, spend time getting to know the professional who will help you navigate the change specifically, your real estate agent or remodeler. For example, if none of the other homes have high-end ceiling moldings and countertops, adding these amenities to a repair and turning project is unlikely to result in a significantly higher sales price. And remember, even with real estate renovations that are known to add value, there's a good chance you'll spend more money than you'll receive on resale. At best, the inspection will assure you that the house is a good investment; in the worst case, it will help you withdraw from the deal.
Read on to learn how to strategically renovate and which projects really add value to your property. First, add up the costs of renovating the property based on a thorough assessment of the home's condition. While you want to make the home look bright and inviting, consider installing simple lighting for a modern update. However, renovation might not be a good idea if you're doing it just because you're selling the house and trying to make some last-minute cosmetic updates.
There's certainly nothing wrong with adding these features to your home, but don't expect potential buyers to be willing to pay a premium to get them when you're ready to sell. For people who love older homes and love working on them, the idea of buying a repair home can be irresistible. In short, before you invest tons of money in an elaborate renovation project, consider what competing properties in your neighborhood have to offer. However, Theunissen points out that what is added in the basement influences the value of the investment if you are looking to sell.
The compensation pays off for homeowners who dream of hosting large family gatherings, more kitchen space, a larger master bathroom, or more space for hobbies. On the other hand, while you want your home to stand out from the competition, you shouldn't make improvements that far exceed the neighborhood standard.