Putting your house up for sale on the market can be pretty stressful.
Not only do you need to deal with real estate agents, getting paperwork together and finding another home for you to move into in some instances, but you also have to deal with figuring out how much to put your home up on the market for.
There are very few things that are more disappointing when you are selling your house than to find that your home is valued at far lower than you initially thought that it would be.
In this respect, it may be wise to hold off from selling your home and trying to do a couple of home renovations.
With a few extra additions to your home, you can easily sell your home for much more money than it would originally be worth. But how exactly do you increase your home’s value? Here’s everything that you need to know.
What To Consider Before Undertaking Any Renovation/Remodeling
Renovating or remodeling your home is no easy task, and you must consider a couple of things before you think about undertaking this endeavor.
Sure renovating your home can be incredibly rewarding, but there are also many challenges. Some extra expenses that you may not have foreseen could come up, for instance.
For starters, before you need to put some serious thought into what exactly you plan on renovating.
The amount that you will get for the house will depend on local buyer’s habits, the state of the real estate market at the time when you are selling the property and how well the renovations have been done.
Consider if your home has any big structural problems that you may need to fix right off the bat. It can be helpful to get a survey done to see what needs to be fixed in advance, as this can take a lot out of your budget.
You should try to fix things like leaking rooves, rising damp, missing roof tiles, insect infestations and more as soon as you can do so.
It may cost a lot to get these repairs done but rest assured, they will add a lot of value to the home. Many buyers may not even consider purchasing a home with structural issues.
You need to be especially careful if you’ve bought a period property that you plan on renovating.
They can be especially challenging to renovate as you will need to pay attention to the home’s style, otherwise the value could be decreased by your renovation.
On a modern home adding double glazed windows can be great for increasing the value, whereas some frames should be avoided at all costs if you’re updating a period home.
It can cost more money to stay away from PVC frames. For a period property it can be helpful to do renovations that will show off the original features of the home, such as fireplaces.
The main question, really, is whether you are planning on renovating or remodeling, however. These terms can mean different things.
For instance, a renovation is more like restoring the home, so you’re making the property more like it originally was.
If you are remodeling you are likely to be altering the building instead, perhaps you’re planning on opening up the floorplan for instance. A mixture of both can be helpful for many properties.
Tips For Projecting Return On Investment
If you really want to get the best value for money, then you need to figure out how much return on investment you are likely to get as a result of your renovation efforts.
In general, you should do your research before you try to remodel your home.
For instance, check out the annual Cost vs Value report as this will give you an estimate of your ROI on certain remodeling projects in your home’s location.
The projections are worked out based on the real estate market fundamentals during the time when you plan on selling, in addition to how much it will cost to pay for the renovations.
It’s also worth remembering that just because you spend more money, it doesn’t necessarily mean that your return on investment is better.
For instance, in some situations adding to your house rather than renovating may be more valuable.
When people are looking for homes to live in they often look for how many bedrooms and bathrooms there are, so it’s worth keeping this in mind.
You can also calculate your ROI using the following formula:
ROI = 100% * net income / price of investment.
This isn’t always so simple, however, as other factors can influence how much of a return on investment you will get on your home.
For instance, it could depend on the state of the current housing market, which can sometimes be fickle.
If you want to fully understand your likely return on investment for your property, you first need to think about what things will influence the resale value of the property. Here are just a few.
4. Hidden Expenses or Issues
Sometimes even small renovations can have a big impact on how much a buyer is willing to spend on the home too, so it’s worth keeping this in mind.
For instance, adding a wood deck to the home, upgrading the kitchen and the bathroom and replacing the windows can all give you a great ROI no matter where you live.
Ultimately if you want to understand your ROI, look into the local real estate guides to see what sorts of things will be best to renovate in the home.
The price of the home is largely going to reflect what local buyers are likely to want.
Considering your target buyer is your best chance of getting the best ROI.
For instance, you may wish to have a bathroom on the ground floor if your buyer is elderly, whereas this may not be suitable for a young family. Consider the area and what the local buyer’s want.
Increasing Square Footage Of Your Home
If you want to sell your home for more money, one way to do so is to expand on the amount of space available.
There are two key ways to do this: make the most of your basement space and if you have a closed floor plan you can open it up.
Maximize A Basement
Is your basement currently useable? If not, it may be time to do some work on that area below your home!
One great way to increase how much your home is worth is to turn your basement into a livable area or somewhere that you can use for storage.
This is a cost effective option that allows you to expand on the space that you have available and it makes your property more attractive to buyers.
There are a number of ways that you can use a basement to your advantage. First of all, you can convert it into a bedroom if you wish to do so.
One of the main things that buyers look at when buying a home is the number of bedrooms in the house, so if you want to attract buyers that will pay more for your property adding a bedroom can be a great way to do this.
According to Nationwide, having a finished basement can give you a 70% return on investment!
Alternatively, you could also change your basement into an additional bathroom. Adding an additional bathroom if your home only has one currently can be a great way to draw in more prospective buyers.
If adding an extra bedroom or bathroom doesn’t appeal to you, there are a range of other things that you can do to maximize your basement space.
For starters you could turn it into a recreation area – perhaps you could invest in a pool table or you could make your own little home cinema!
You could also make it into a kid’s play area, make it an additional storage area and so much more.
When you’re renovating your basement there are some things to keep in mind, however. First of all you should make sure that any waterproofing and damp proofing is done.
A basement is below ground, meaning that water ingress from the ground can be a big problem that can damage the integrity of the building. It could even result in flooding.
Investing in a structural waterproofing specialist is a good idea in this case, as they will be able to help you to install any waterproof membranes or treatments to protect the building.
For the same reason you should also be careful about what sorts of materials you use, as things like hardwood may end up warping underground.
Open Up The Floor Plan
If you don’t have a basement or it isn’t possible for you to get a basement fitted into your home, you may be wondering how you can expand on the space in your house.
Well, where there’s a will there’s a way!
A lot of older homes tend to have walls dividing each room, but if you want to maximize on the space in your home a great way to do so is to knock down a couple of walls and create an open floor plan.
By knocking down a few walls the whole floor plan of the home can look entirely different, which can be attractive to prospective buyers.
Of course, unless you do this for a living or are well experienced it may be best to get a professional to do this so you don’t end up accidentally damaging integral walls to your home.
Before you go ahead and knock away those walls, here are the pros and cons of open floor plans.
|Better communication and socialization||Can be expensive for heating and cooling|
|Ideal for families – parents can watch children more easily||Limited privacy|
|More flexible layout||Construction can be expensive|
|Better flow of foot traffic||Can sometimes look cluttered|
|Improves value of the home|
Where do you knock down the walls? Well, open plan kitchens, living rooms and dining rooms are quite popular and it opens up the floor of your home.
Perhaps you aren’t sure about open plan living. In this case, why not try some sliding pocket or some bi fold doors in between the rooms?
This will mean that you can close the area when you need to while still having the illusion of open plan living.
Whatever the case, open floor plans have been quite popular for a number of years and are likely to remain that way for quite some time.
Top 5 Renovations For Increasing The Value Of Your Home
So what are the main renovations that will add lots of extra value to your home? Here are the top 5 that you should be thinking about.
Add A Stone Veneer To The Front of Your Home
Stone veneer siding can be a great way to spruce up the look of your property.
It’s typically installed on just a section of the front facing part of a person’s home.
It’s also an exceptionally good investment to make if you want to increase the value of the home.
According to the Remodeling 2020 Cost vs Value Report, it was actually the top home improvement project for adding extra value to a home, adding 95.6% of the cost of the project to the value of the property.
For instance, if you paid $9000 on the stone veneer, you would be getting roughly $8000 in return.
You can choose from a range of different types of stone siding options. The first choice is solid stone siding, and this will give you the most legitimate look.
It can be pretty expensive to install so it’s not practical for everyone, but it looks very attractive. As you can imagine it is made from natural real stone, not manufactured. It’s very durable.
Alternatively you could get manufactured stone siding. It’s the most common type of stone veneer that you will find because it’s a tiny bit more affordable, though still expensive.
It can sometimes be known as cultured stone siding. It has been made to resemble stone but it is usually made out of concrete mix.
You could also get faux stone siding. This is a little bit more expensive than manufactured stone siding, but it looks authentic – more so than manufactured stone. It’s also usually more durable.
Thinking about investing in a stone veneer? Here are the pros and cons.
- Stone veneers are more affordable now than they’ve ever been before thanks to the fact that it can be made out of alternative materials.
- It can last a long time
- It gives your home an attractive look
- Stone veneer siding is usually very lightweight
- It’s easy to install – you don’t necessarily need a professional to get it set up
- Stone veneers can sometimes be mass produced and this means that it doesn’t look entirely natural on closer inspection
- Plastic veneers generally aren’t ideal in terms of sustainability – a concrete option is often better.
Minor Remodels To Kitchen And Bathroom
One of the first things that prospective buyers will want to see when they step into the home is the kitchen, closely followed by the bathroom.
Let’s start off with the kitchen.
Minor Kitchen Remodels
A kitchen is a center point to your home, so it’s important that it makes a statement to your buyers.
Spacious kitchens that look attractive and have no problems are a big selling point.
Renovating your kitchen will give you a great return on investment.
In fact, the Cost Vs. Value report states that you could get a 77.6% return on investment on a minor kitchen remodel so long as you invest your money wisely.
Interestingly though, this number decreases the larger the renovation is. So if you did a major remodel on a mid range kitchen you’re only looking at a 58.6% return on investment.
Ultimately if you’re remodeling your kitchen you want to consider doing minor upgrades if you want the best return on investment unless the kitchen has any major problems.
In addition to this, if you get a house with an outdated kitchen then it’s important that you modernize it, as outdated kitchens can sometimes repel buyers.
So when we talk about minor remodels, what exactly do we mean? Here are a few ideas:
- Rejuvenate the Cabinets and Add Any New Hardware
Cabinets can cost a lot of money, so why not just work with what you’ve got and paint over your cabinets instead?
This can cost a lot less money, potentially costing less than $300 depending on the size of your kitchen and the number of cabinets that you need to paint.
You won’t need to spend much more than around $200 on hardware either. If you still have a little bit of budget remaining then you can get some trim so it makes it look like your cabinets are taller.
It’s an easy way to spruce up your kitchen without spending a fortune.
- Get New Appliances
Want one way to really wow your prospective buyers? Have their appliances ready and waiting for them!
It will cost a little bit of money to invest in some new appliances, but it does mean that the space will be more functional and it’s a quick way of really adding some extra value to your home.
If you wait until the appliances are on sale you’re spending even less money on it!
- Purchase and Install an Additional Sink
Outdated kitchen sinks are a big problem for prospective buyers. You don’t need this minor thing to put off your buyers – it costs so little to get a new kitchen sink fitted.
You can spend less than $400 on getting a new kitchen sink fitted, and this is such a minor improvement that will go a long way in terms of sale value.
- Change the CounterTops
Countertops can make or break a kitchen, so make sure that you put some thought into what you want to do with them. Updating the countertops doesn’t need to be expensive either.
You can keep your eye out for materials that may cost you less money that will still look modern and clean.
Laminate is a good example of this. They look much more expensive than they did before because the manufacturing has changed so it’s a good way to add some extra modernity to your kitchen.
- Add New Lighting
Having the right lighting fixtures in any room is essential, but especially so in the kitchen. You want a clean looking light fixture in your kitchen, as this can influence the overall feel and look of the kitchen.
If electronics aren’t your specialty, it can help to speak to a qualified electrician for some help, especially if you want to swap an old fixture for a more modern one.
Minor Bathroom Remodels
Like with kitchen upgrades, bathroom remodels can have a big impact on the sale value of your home.
In fact, minor bathroom upgrades can give you up to 2-3% extra profit on the sale of your house. This may not seem like a lot but it can make a big difference on a major home remodelling project.
In addition, minor bathroom remodels don’t need to cost too much. In fact, you could even spend as little as $12,000 on minor bathroom remodels.
So what bathroom remodels are the best for getting the ultimate return on investment?
If you want to spruce up the look of your bathroom, getting some new flooring in there can be a great start.
It doesn’t need to cost a fortune either – even something more affordable like a ceramic or porcelain tile can look more like stone or wood if you want it to.
It’s even possible to add radiant heat mats under the flooring which is ideal if you live in a cold location.
- Adding/Upgrading a bath/shower
One great way to upgrade your bathroom is to add a walk in shower. Soaking tubs aren’t as popular as they were before, though they are still popular.
There are a lot of benefits to getting a new shower. For starters, they can look a little bit dirty after a few years of use, so the room will look much cleaner if you get a new shower.
There are so many different choices too, from electric showers, to power and digital showers.
You can even get a wet room installed, and a screen. There’s so much to choose from that it can feel a little overwhelming but trust us – your buyers are going to love it.
- Installing an additional sink
If your target buyers are bigger, busier families or couples that have just one bathroom, installing an additional sink is a good way to go.
They’re incredibly convenient, and it saves your buyers from arguing over sink access when they’re cleaning their teeth.
You may also be surprised to learn that it can even be pretty easy to install and extra sink – a small amount of space isn’t a problem.
You can simply connect the additional sink to the same water pipe, though it’s best to speak to a plumber about this.
Alternatively you could set up both of the basins next to each other. It’s important that the sinks are adjacent to each other though, otherwise the sale value of your property will not increase.
- Additional Storage Space
People have a lot of stuff, especially in the bathroom. For this reason getting some extra storage space in the bathroom is a great way to give your bathroom a new, functional look.
Some additional storage space will give your buyers plenty of space to put all of their key bathroom items, such as skincare, hair products, toilet roll, medicines, towels and more.
We don’t always want to keep our items out for guests to see either. Even adding one or two extra cabinets can go a long way. You could opt for a built in cabinet, or freestanding cabinets.
There are even custom made units that can be helpful. If your bathroom doesn’t have a great deal of space though, shelving is a potential option.
- Repainting the walls
Repaint the walls of your bathroom to give it more life! The last thing your buyers want is dull looking walls, or outdated color schemes from the 1970s.
Neutral color schemes are a great choice – think cream, white, black, wood paneling and deep blue colors.
Don’t worry about it being dull, as you can add some more color with cabinetry, towels, bath mats and other things like potted plants. Just keep the tiles and paint neutral for a clean look.
- Add a Vanity
A vanity can add a lot to any bathroom, but be cautious as it can be pretty expensive to install! You will need to upgrade the faucet, countertops and the sink too.
If you do choose to upgrade the vanity in the bathroom, it can be worth getting a vanity that is a reasonable height, and try to get granite countertops.
Install Hardwood Floors
Another home renovation choice that can have a massive impact on your overall ROI is installing some hardwood flooring.
Flooring is everywhere you look in a home, so getting it right is pretty important.
In fact, your home value can increase by around 3-5% when you install hardwood floors, and the chances are that your buyers are going to want to be in the home a lot more often when there is hardwood flooring in the home.
Naturally though, one of the biggest reasons to get hardwood flooring is that it looks incredible in any home.
Of course, there are some things to keep in mind. Not all hardwood flooring is the same, and in fact there are a number of different types from pine to Brazilian walnut.
As such, some types of hardwood flooring can cost a lot more than others.
It’s also especially important to ensure that you maintain the floors well – poorly maintained hardwood floors aren’t going to do anything for the retail value of your home.
On the subject of cost, it stands to reason in this case that the more you pay for the hardwood floors the higher your asking price is likely to be.
In fact, you may expect to see as much as a 70-80% ROI on hardwood floors.
It’s certainly a good investment to make, though you do need to weigh up whether the money will be better spent on the flooring or on upgrading another part of the house if your renovation budget is limited.
Replace Old Roof
Replacing your old roof may be a good way to increase the value of your home.
After all, the last thing that your prospective buyers want is the prospect of leaking ceilings when it starts to rain.
Not only that, but adding a new roof can give your home a whole new look that is sure to entice a higher asking price.
How much are we looking at here? Well, you may expect to spend somewhere from $5000 to $10,000 on replacing the roof, but you could expect to get around a 67% to 68% ROI from it.
This may not sound like a lot, but ultimately you could end up completely putting off your buyers if your roof hasn’t been maintained well. A roof that is damaged can send off big alarm bells in a structural survey.
So what exactly should you be doing when it comes to your roof?
- If you’re getting a lot of leaks, then you need to replace the roof.
- It’s worth investing in a survey to see if there are any issues with the roof. For example, a report may pick up on damp, rot, asbestos-containing materials and more. This report should tell you whether you simply need to repair the roof or if you need to completely replace it. If you ignore any issues with the roof, you may end up sacrificing some of your profit to cover the cost of repair.
- If you aren’t going to be repairing the roof yourself, it’s worth investing in a good quality contractor to ensure that the work is done well. You should also ensure that you invest in good materials. Your buyers will be able to tell if the job is done poorly or with poor quality materials.
- Looking to make your roof more interesting? Try playing around with new colors, styles and materials. There are so many styles available so it’s worth checking what is on offer before you buy the materials.
- Make sure that you look at the roof frequently to see if there are any issues, and make sure that it’s well maintained. You’re more likely to see issues like missing shingles if you check the roof regularly.
- When you’re selling the property you could offer to put the warranty of the roof into your buyer’s name. It costs very little to transfer the warranty, and it can be a big selling point for your buyers.
Make Your Home Energy Efficient
Energy bills can eat up a lot of your household income.
It should come as no surprise, then, that making your home more energy efficient can be a great way to entice buyers to purchase your house for more money.
Not only that, but as time goes on more and more buyers are concerned about the impact that they have on the environment.
Some buyers are simply willing to pay more money for a home that fits with their eco lifestyle.
According to Remodeling magazine, even just replacing your double hung windows with some insulated vinyl records can give you about 74% ROI. And that’s just the windows.
So how can you make your home more energy efficient? Here’s what you need to know.
- Invest in Double Glazing
It’s pretty difficult these days to come by a home without double glazed windows, and it’s a really simple way to make your home more energy efficient. It can cost quite a bit of money, however.
There are a lot of benefits to making this investment though.
For instance, you can expect a warmer home during the winter, and this means that your future buyers are less likely to spend as much money on their heating bills. This can save them a lot of money in the long run.
Energy efficiency isn’t the only benefit of double glazing however. It can also reduce the amount of noise heard from outside.
- Remove Any Draughts
Do you feel a chill? Well, you shouldn’t. Your priority when renovating a house should be to get rid of any draughts, or else your return on investment for the home will suffer.
Many draughts can be solved with some insulation and double glazing, but there are other things that can cause draughts. Take care to remove any gaps around the door frames, work on any pipework and window draughts.
In the worst case scenario you may need to replace the exterior doors, but this shouldn’t cost an excessive amount of money.
Before you put your home on the market, you first need to make sure that the home is well insulated.
Consider solid wall insulation and loft insulation. The latter is certainly the easiest to get set up. This will help to keep the heat in, though it can be a little expensive.
- Replace or Repair Your Boiler
If you’re selling an older home, the chances are that you will need to replace your boiler.
Standards for the upkeep of boilers have changed a lot in recent years, and they can lose lots of heat so replacing the boiler is certainly worth your time.
- Solar Energy
Want your home to be incredibly energy efficient? Make your own energy! Think about getting some solar panels installed to save some energy for your buyers.
It’s best to put the panels in a discreet place as some people can find them to be a bit of an eyesore. They’re fairly inexpensive.
- Energy Efficient Lighting
It’s time to toss out those old lightbulbs and replace them with some energy efficient bulbs instead.
Your buyer can save hundreds with just this simple switch. What’s even better is that for you it’s a very affordable fix, costing you less than around $3 each.
Anyone that’s looking to sell their home wants to get the best possible profit.
Thankfully, by making the right changes based on location and buyer preference, you can make sure that you really get the best return on investment for your home.
By following the guidance in this article, hopefully you too can get the best profit for your home.