Home Renovation Tips to Increase Your Return On Your Investment

Home Renovation Tips to Increase Your Return On Your Investment

With the real estate market continuing to maintain its torrid pace, looking at making significant upgrades to improve the value of your home, loft, and apartment can be a good strategy if you know what to improve upon.

Sometimes, investors like the Alchemy Ventures New York group will overhaul entire housing units and homes with the idea of flipping the property to make a sizable return. Still, they are typically professionals that have a wealth of experience.

Too often, homeowners will sink money into their homes, thinking that it will automatically yield a higher offer and greater return on the investment. Still, the reality is that not all renovations and upgrades are equal.

Some upgrades can be done relatively inexpensively, and by being a little creative with your home, you can change the look and feel of any given room without significant costs.

Being creative with the look and feel of your home can be a matter of the type of lighting fixtures you install, choosing to make your house a “smart home,” and selecting bright colors can open up an otherwise drab room.

For more significant renovation ideas that can increase the value of your home for sale, the list includes some interior and exterior renovations that are cost-effective and offer a better rate of return than others.

1. Interior Renovations

Curb appeal is a priority in selling your home and apartment, and it should be top of the list with your strategy for any type of renovation. But once inside your home, the potential buyer should be wowed by the work that has been done.

That said, there are some things you need to know about and areas to upgrade that offer significant returns over others. 

2. Kitchens And Baths

Some areas are better than others for investment and resale value. For example, if you asked a super agent like Samuel Kooris Brooklyn is a great investment area, and the first thing he’d recommend is to ignore what you probably think are the most important rooms.

He’d stress that it isn’t the bedroom or living rooms, but the kitchen and bathrooms offer the best returns on the upgrades.

There are a few reasons for this, from the amount of time people use these common areas to the cheaper cost of upgrading these rooms and the “wow” factor that can subtly influence a buyer’s perception of the home.

A minor kitchen upgrade can yield almost 90% as a return on the investment, increasing the home sale value. 

3. Bedrooms

There are differing thoughts on the value of upgrading a bedroom.

Of course, people spend almost a third of their day in the bedroom, but bedrooms are seen as a personal space, and individual likes and dislikes influence the perceptions of the rooms.

So sinking money into upgrading bedrooms isn’t a wise maneuver and will yield between 50-70% return. 

4. Living Rooms And Family Rooms

Improving living rooms and family room add-ons are thought to be essential but typically offer a lower return than kitchen and bathrooms.

At nearly 80% of return on the investment, living and family rooms can be a good upgrade and renovation, but also costly, with the average investment being nearly $46,000 for the space to be renovated.

5. External Renovations

Curb appeal is one of the most critical aspects of your home renovation strategy and should be at the forefront of any work you have planned.

Good curb appeal is the first instance a potential buyer sees your property and is a great way to do some minor upgrades and landscaping to make a great first impression. 

6. Two-Story Additions

One of the best ways to invest money into your home and increase its overall resale value is by increasing its overall square footage.

For example, a two-story addition may cost a sizable investment but can add almost 50% of the square foot space of the home, returning as much as 85% of a return.

7. Pools And Hot Tubs

While a pool or hot tub may seem like a good idea, it limits the scope of buyers that may be interested in your property. In addition, there are upkeep and maintenance costs and the yard space that simply turns off some. It is better to leave out the pool and sell the home, and if the new owner wants that pool, they can add it. 

8. Decks And Patios

Decks and patios are one of the cheaper renovations for the yard that you can consider, and they offer a decent return (over 85%).

However, as a deck or patio isn’t a deal-breaker, they add some perspective to the space. Unfortunately, these types of improvements offer little to increase the home’s overall value.

Article Submitted By Community Writer

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