In the housing market, some home improvements pay off by increasing your home’s value, while others will do little to improve resale. In general, updating your kitchen and bathrooms are always a good investment, as these improvements yield the highest rate of return.
Kitchens
The kitchen tends to be the most important room in the house. The average payback on improvements to the kitchen ranges from about 80% to 93% with costs ranging from $15,000 and up. Some good ideas: new tile flooring, refacing old cabinets, and/or updating appliances to new energy efficient models.
Bathrooms
Bathroom renovations can yield a return of about 85% to 90%, with costs starting around $10,000. Adding a new bathroom returns around 80% to 85% – even higher if you only have one bathroom to start with. And since many home buyers today won’t consider a home with less than two full bathrooms, adding a second bath can make your home significantly easier to sell. Some good ideas: double sinks, tile floors and new bath fixtures and faucets.
Other Improvements That Pay Off
Home improvements that bring a good return on your investment can be a big undertaking. Larger improvements could include adding a fireplace, building a deck or patio, or adding a new heating or cooling system. However, you don’t have to spend huge bucks to upgrade the look of your home. Smaller, less expensive improvements could include replacing old doors or installing a ceiling fan. Cosmetic improvements can also go a long way in the minds of prospective buyers.
Home Improvements To Avoid
There are some improvements (adding a swimming pool for instance) that rarely pay off. These improvements are fine if you and your family will enjoy them, but keep in mind that they rarely increase the value of your home. In some cases, they can even make your home more difficult to sell.
You should also avoid making too many expensive improvements that increase your home’s value beyond what is customary for your neighborhood. You don’t have to cut corners, but owning the most expensive home on your block can be an obstacle to resale.
One last piece of advice, don’t get too fancy. Everyone’s tastes are different, so choosing colors and materials that appeal to a broad range of people will make it easier when it comes time to move.
WE WANT YOUR FEEDBACK
Sorry you did not find what you were looking for, Sonya! We were trying to make this article mostly about the best home improvements that pay off, and were intentionally vague about the improvements to avoid, because we have another article about The Worst Home Improvements to Make. Check it out!
This article promised to discuss home improvements to aviod, but failed to do so. Other than a swimming pool, what are other specific home improvements to avoid?