It’s summer in Fayetteville, which means ONE thing for military families (and everyone else)… PCS season! Whether you are moving away or moving here, selling your home or renting it out, there is one thing that you can be sure of – you want to get the best value for your home!
Even if you’re not planning to sell your home anytime soon, it’s an inevitable question when you consider remodeling: How much will this improvement add to the value of my home?
Kitchens and bathrooms people. Kitchens and bathrooms are what sell homes. They are also two of the more expensive renovations BUT when you combine the right design and materials you can increase your ROI (Return on investment) if and when you do decide to sell, and increase your enjoyment of your home in the meantime. Everyone can agree that home improvements not only add value for the present owners, but also when it’s time to sell! Over 35% of homeowners agree – remodeling is the most efficient way to increase your home’s value.
A recent study from the National Association of Realtors confirms that kitchens and baths are still at the top for interior home renovations. We’re gunna break those down, as well as touch on a couple more money making Home Improvements that can potentially provide the biggest bang for your buck for ROI.
Kitchens are the most important room in the home relating to value. Most people consider the kitchen to be the heart of the home. You not only make food there, but you make memories as well. Birthday cakes, Thanksgiving Turkeys and teaching your daughter how to make Grandmas Mac n’ Cheese… The kitchen truly is the heart of the home. Due to this, it’s even more important that you invest those funds into having a fresh, inviting, modern kitchen. New cabinetry, lighting, adding an island or pantry, new energy efficient appliances etc will all significantly increase your homes market value, and they will greatly add to your enjoyment of your space. Updates in this room will really pay off – According to HGTV, you can expect to recoup 60%-120% of your investment on a kitchen remodel. When remodeling, you want to ensure that you don’t go overboard. Your kitchen should never be fancier than the rest of your house and it should stay in line with the rest of the neighborhood.
The cost of remodeling your kitchen really depends on two things. First – the size of your kitchen. How big Is the space you are already working with? Are you adding on? If you have a small kitchen and just want to re-do that space it will be fairly inexpensive. If you are looking to expand and tear down walls then the price will go up. Second is the design decisions you make. Are you going to go with granite counters, marble flooring, state of the art appliances and custom lighting? In general, homeowners spend from $12,594 to $33,118 on kitchen remodeling, at an average of $21,751, according to HomeAdvisor.
When we were looking to buy our first home I had several “must have’s”- and at the top of that list? The kitchen. I knew what styles I liked, what I needed and what ones I absolutely couldn’t stand. Potential buyers have been known to rule out homes based on kitchens alone. Stainless steel appliances and granite countertops continue to be at the top of many buyers’ checklists, which is why this is our #1 remodel for the biggest ROI. According to the Remodeling Impact Report, 12% of realtors said a completely renovated kitchen most recently helped them cinch a deal, resulting in a closed sale.
If you are looking to get a fresh look in the kitchen, but aren’t wanting to spend the big bucks, you may want to consider an upgrade. Replacing dated appliances, refinishing cabinets and changing out tile back splashes are some cost-effective updates that can still modernize a kitchen and make it more appealing to buyers.
In addition to the resale value, kitchen improvements can also help you enjoy your time in your home, with better functionality and livability cited by 28% of respondents as the most important result of their remodel. Homeowners who shell out $54,000 on a kitchen remodel can count on adding about $44,000 to their home’s asking price, for a 81 percent ROI.
Anyone who has ever shared a bathroom with a sibling, spouse or parent knows how important this room is! The same goes for remodeling and ROI. If there are not enough bathrooms, OR if the existing bathrooms are outdated, this will be a huge turn off to potential buyers. Updating bathroom amenities and fixtures (or adding an additional bathroom) can increase a home’s sale appeal and attracts more buyers. Even if you aren’t looking to sell right now, it will greatly add your enjoyment of the home. In terms of value, the bathroom is the second most important room of the house.
Bathrooms will show your homes age faster than any other room in your house (aside from the kitchen). A potential buyer will see an outdated bathroom and hesitate at the costs associated in remodeling. 45% of realtors have suggested sellers complete a bathroom renovation before completing a sale.
See what a difference it can make to the entire space? Imagine this as a home buyer – which bathroom would you prefer?
Start at the bottom and work your way up. Replace old floors with fresh ceramic tile or natural stone. Replace the tub, sink and faucets with modern fixtures. Replace the old dated vanity with something more modern for a clean, fresh look that buyers will love! Large mirrors give the illusion of space so upgrade that old chipped mirror over the sink for something new! Lastly be sure to upgrade your lighting – no one wants a dark bathroom – and add an exhaust fan if you don’t have one. The only thing worse than a dark bathroom is a dark SMELLY bathroom!
A bathroom overhaul costing $13,000 can add $11,000 to a home’s asking price, an 85 percent ROI.
National Average Cost: $13,730
Return on Investment: 85.4%
Raleigh Average Cost: $13,802
Return on Investment: 85.0%
- Windows/ Doors
Even if you aren’t planning on selling your home today, replacement windows and doors can help save you money now. Not only can they add to the curb appeal of your home but they can DRASTICALLY slash those energy bills. New windows and doors create a tight seal within your home, so no air can leak out (or in). Air leaks are the biggest culprit in high energy bills, by replacing your old windows and doors you’ll spend less heating and cooling your home while enjoying a comfortable interior – no more drafts!
ANY energy efficient upgrade that promises long term savings is a surefire way to boost your asking price. New windows and doors ARE a bigger ticket item to invest in (they can run as much as $19000) HOWEVER you can expect to recoup up to 75% of that cost when you sell… AND you will get a tax credit to boot!
National Average Cost: $18,759 (Wood)
Return on Investment: 73.0%
Raleigh Average Cost: $18,148
Return on Investment: 70.1%
New doors are something that often get overlooked, but this is one of the first things people will see when entering your home (regardless of whether its just to visit or looking to purchase). You want to ensure that your door makes a statement, and shows off your unique personality (without turning potential buyers off!)
The door above is a perfect example of what you want to aim for. The surrounding décor can easily be removed and swapped out as tastes change, but the door itself is a timeless classic that will appeal for years to come!
- New Roofing
First impressions count. New roofing may not be the first thing you think of when you think of remodeling but it should be! Research done by Remodeling Magazine reveals that having new roofing installed can have a big impact on home value –specifically on home resale value. New buyers who visit your property are going to notice exterior elements first, and they are definitely going to notice if the roof is in poor condition. They are going to see this as a HUGE out of pocket expense they will have to pay as soon as they get a heavy rain. Not to mention, any home inspector worth their salt will notice right away, and it will drastically reduce the appraisal value on your home. Replacing the roof is a surefire way to add value to your home, and hike up the selling price.
Updating your roof by incorporating new materials, colors or styles, can give it a modern touch that is attractive to buyers. With many roofing styles and types available, replacement serves as a great chance to give your home a new look and boost its aesthetic appeal.
A more aesthetically appealing and safe home is not likely to spend as long on the market before it sells in the present market. And if your home sells more quickly, this will save you money on estate agent and marketing fees, and make the overall process more efficient. Spending $14,000 on a new roof can add curb appeal and up the asking price by $12,000, for a ROI of 75 percent, says the ISoldMyHouse.com report.
National Average Cost: $20,664 (Midrange)
Return on Investment: 68.8%
Raleigh Average Cost: $18,867
Return on Investment: 74.2%
5. Basic Updates & Maintenance
Basic updates are the items that get overlooked the most, but can add the most value to your home. Keeping the paint fresh, replacing rotten wood, pressure washing, adding insulation, landscaping and resolving mold issues are just a few key items you want to make sure not to neglect. These preventative maintenance chores help keep your home from deteriorating over time. Buyers want a healthy, solid, safe home, and they look carefully for signs of routine maintenance. These small projects will keep your home in tip-top shape, so when you do decide to sell, buyers will see a well-cared-for home.
Many homeowners also tend to overlook the nickel-and-dime stuff, like light fixtures, faucets and door knobs. If you cant afford to splurge on high end fixtures and nick-nacks, at the very least you want to ensure that the house has a uniform look and feel. So pick a style and stick with it throughout the home.
If you or someone you know are PCS’ing, give us a call! Just looking to update that kitchen? We’ve got you covered! We have partnered with EXIT Realty and are offering FREE in home assessments. Our trained experts will evaluate your home, and offer suggestions on how YOU can get the biggest return for your home!