Remodeling your home is a great American pastime. It can be great fun conceiving of a project, watching the work unfold and then living in the remodeled home. Perhaps you’re thinking of starting a project on your home. Before you break out your sledgehammer and get to work, you should understand which renovations can make the most difference in the overall value of your home.
Below, we examine a list of the most cost-effective renovations to make to your home, according to a report from the National Association of Realtors (NAR).
Hardwood Floor Refinish
Refinishing your hardwood floors may take a lot of time and manpower, but the results can make a huge difference in the sale of your home. According to the NAR report, refinishing your hardwood floors has a “project recovery value” of 100 percent, meaning that in the study 100 percent of the project costs were recouped when the home was sold. On average, refinishing hardwood floors costs around $2,500, but the monetary and aesthetic results can be well worth it. In fact, 82 percent of respondents said they had a greater desire to spend time inside their home after completing their hardwood floor project. That’s a good indication that this renovation will make buyers more enthusiastic.
Though certainly not the most exciting or aesthetically pleasing home upgrade, making sure that your home is well insulated can significantly affect its value. According to the NAR report this type of home improvement has a 95% project recovery value. An insulation upgrade will make a home more energy efficient and make it a more comfortable living space for the homeowners (meaning it will make it cooler in the summer and warmer in the winter months). Upgrading your insulation may not make your home look prettier, but buyers will think of your home as reliable—and will appreciate that they won’t need to worry about significant energy costs.
New Wood Flooring
If you still have that red Berber carpet from the 90s in your house, you might want to think about upgrading to wood floors. Buyers love wood floors (watch any HGTV show for a few minutes and you’ll likely hear them brag about “all wood floors”) and they make a house look modern, clean, and cozy. Not only do they look great, but they also help homeowners increase the value of their home. Installing new wood floors will likely make your home worth more. The NAR report found that such projects have a project recovery value of about 91%. Though installation of wood floors can cost about $5,500, the investment can pay off.
Basement Conversion to Living Area
All buyers want the maximum amount of living space they can get for their budget. Converting your basement into a living space is a great way to add additional square footage without having to build anything onto the house. Although a traditional basement is great for storage it can often look scary and uninviting to buyers. In addition to having more living space, a potential buyer could see a finished basement as an opportunity to make a guest room, a playroom, or an office that they otherwise wouldn’t have. Basement upgrades can be pricey, with an average project cost of $36,000, but according to the NAR report they have a project recovery value of about 69%.
The kitchen is the heart of the home, and it’s where you and your family probably spend a lot of your time. It’s where you cook every meal and where you’ll enjoy many memorable family celebrations and dinners. Kitchens can definitely sell houses (and vice versa—a kitchen can really turn the buyer off of a house) so making sure that your kitchen is up to date is crucial. A full kitchen renovation can be very expensive, but upgrading things like appliances or replacing the countertops can go a long way toward appealing to buyers. According to the NAR report, a kitchen upgrade has a project recovery value of about 67%. A top-notch kitchen can make a big difference in persuading a buyer to close the deal.
Director of Content
Benjamin is fascinated by the real estate industry and financial innovation. He enjoys helping people learn about the housing market and how to successfully buy and own a home.
Share this Post
On – 26 Jun, 2017 By Benjamin FeldmanDirector