Get The Most Bang For Your Buck With Value-Add To Property
/In a sense, any improvement to your or your client’s property will result in a higher property value. But that doesn't necessarily mean you're going to get your money back or make a return on the investment. And, as you will see, it's not just the type of remodeling you do, but the scale and strategy of the remodeling that determines the return on investment. Here are some of the top value-adds that can get you and/or your clients the most bang for the buck.
Improving Curb Appeal
The buyer experience begins well before stepping foot inside a home, and so does the property’s value. Consider some simple landscaping, such as re-mulching, pruning shrubs, and adding a few colorful plants, with potential to recover up to 100% of the investment. According to studies, it is possible to recover roughly 93% of the cost of installing stone veneer and 91% of the cost of a new garage or entry door. New siding or exterior paint also drastically improves first impressions. While not the first place some buyers may look, a restored roof adds significant value to a property, particularly if it has suffered water damage or is simply worn out. Outdoor spaces, such as a deck, patio, or pool, acts as a sort of extension of liveable area, which brings us to the next point.
Increasing Liveable Square Footage
One of the most important factors that determine the value of a property is the liveable square footage. If you have the space and budget, adding to the footprint of your property is a sure way to drive up its value. In particular, additional bedrooms and bathrooms are valued. If that is not possible, you can still increase the value by optimizing the space you do have. This can be accomplished by opening up common living areas, as the new generation of homebuyers generally prefers open floor plans. You can also remodel neglected areas, such as the basement, in order to add to the total area that is truly liveable.
Strategic Kitchen and Bath Remodels
Kitchens are known to be one of the focal points of a home, but note that a basic makeover gives an 87 percent return on investment while a major kitchen redesign only yields about 80%. A light makeover for your kitchen could include painting cabinets or putting in new doors, upgrading large appliances and countertops, or installing more modern cabinet hardware. Bathroom remodels work similarly. A superficial bathroom remodel can mean up to a 102% return on investment! Prioritize regrouting tiles and replacing mirrors, fixtures, and caulk around the shower, tub, and toilet areas.
Updated Systems and Energy Efficiency
Make sure that your electrical and plumbing installations are working properly so that they don’t detract from the sale value. While not necessarily an aesthetic improvement, upgrading HVAC, water heaters, and windows will provide the highest returns. Between the growing interest in more environmentally friendly options and the long-term savings associated with more efficient energy, buyers are increasingly attracted to these types of upgrades. Be sure to detail the benefits when marketing your property so buyers understand what they are getting.
Fresh Paint and New Floors
One of the most effective and budget-friendly upgrades is a fresh coat of paint. Opt for light neutral shades. It will work wonders for brightening up darker areas and breathing new life into not only walls, but cabinets, trim, and exterior. On the other hand, hardwood flooring is highly valued by many buyers today, and when installed properly, it can increase the selling price of a home by around 2.5%.
Home Staging
The objective of home staging is to make a property more appealing, thus increasing its value. Professional home stagers strategically organize and furnish the property in such a way that viewers can project themselves in the space and better see its potential. According to a recent study by the International Association of Home Staging Professionals, staging can contribute to a 20% boost in the sale price. Besides that, staging accelerates the sale of homes by three to 30 times compared to unstaged competitors.
Determining exactly which upgrades will get you the most bang for your buck requires a study of your property’s weak spots and the local market and demand. Working with a local realtor can help you to decide what upgrades make the most sense to invest in so your home or your client’s home meets the expectations of buyers in your market.
Happy Value-Adding!
xx, Danae