Can home improvements really increase the value of your home? Of course they can. The trick is in knowing how much to invest, and which areas of the home to improve to realize the greatest return.
When preparing to sell your home, your first step should be to appraise your home honestly. Determine where your home could use some improvements, and then decide whether the added expense and time will net an increase value. Chances are, the time and money will pay off with a faster closing and a higher selling price.
Home improvements are the smartest ways to increase your home's value. First impressions really do last, and potential buyers will not overlook the time and money spent. But exactly how much can you expect your home's value to increase? Here are a few general rates of return on popular home improvement projects:
* Minor kitchen remodeling (Connecticut)--125%
* Major kitchen remodeling (Kentucky)--92%
* Basement renovation (California)--98%
* Bathroom remodel (Oregon)--90%
* Exterior paint (Pennsylvania)--90%
* Master bedroom (Florida)--86%
The above statistics were compiled from various published surveys, mainly based in major US cities. Though results may vary due to factors like geographical location and market trends, these statistics generally support the claim that home improvements will increase the home value.
Taking the above examples into account, one can generalize that kitchen and bathroom renovations will offer the greatest return on expenses. If your basement or master bedroom can use attention, these areas will also pay off with a return of about 90 percent. Repainting the exterior of your home is very important as well, as this will give potential buyers a great impression before they even enter the front door. Interior painting and decorating should not be overlooked, as these can be very inexpensive ways of increasing the value of your home. These remodeling projects may be minor or extensive, but will in some way contribute to an increase in your home's value.
The original design of your home is a very important consideration when planning improvements to increase the value of your home. Buyers love the ambience and nostalgia of older homes, so it is important to preserve unique details such as woodwork, hardware, fixtures and glass or French doors. Choose similar materials or find complimentary ones if a complete renovation is required. Buyers who see your period home from the street will likely be disappointed to find a full modern interior renovation. Know how to make your home attractive and inviting for the buyer. Grab the buyer's attention and interest and give them a reason to want to inspect your home further.
To further support the claim that home improvements increase value, research suggests that you make the best practical use of the space you have available. Build a deck or patio to create a warm, inviting space for entertaining. Turn a corner of the basement into a bright and busy playroom for the kids. These are relatively easy projects that will make your home more inviting, and can bring a healthy increase to your home's value.
If you're wondering if your home improvement efforts will pay off with an increased home value, the answer is "yes". Your home will sell faster and you will realize a greater profit, so go ahead and get started.
