Over time, people change their sense of style and want to make their home look like they are up to date. One of the main reasons why people remodel their homes beside to fit their taste is to add more value to their property. Not only can someone try to save money to pay for the renovations themselves, but one of the most popular ways to finance their home project is to use a 203k loan. However, which projects will be worth it in the long run? What do people mainly like to see on a “renovated” home?
- Major Home Maintenance – When homeowners want to do some upgrades and construction on their homes, the most overthought but necessary items that should be on their list should be the overall maintenance of their home. We are talking about maintenance that needs to be done to make the home in a livable condition like the roof or moldy leaky pipes. Think about this: would your house still be livable if you remodeled your kitchen but let the plumbing go that causes leaks and flooding in the home? Home Maintenance is a very common make-it-or-break-it factor on the value of the home as well as the price tag if you decide to sell the place. If you watch those shows on HGTV, you hear more people being concerned moving into a house that wasn’t well maintained than a house with the wrong color top of a stove or cabinets.
- Kitchen – If you want an investment that can generate a return 100% or more, start with the kitchen. The kitchen is one of the areas where people spend time in their homes. When it comes to first impressions on a good home, the kitchen is the one area where anyone can see if the money is well spent or not. So what kind or remodel makes everyone go “wow”? When it comes to your kitchen, think very traditionally. Nothing says traditional more than having all-wood cabinets, flooring made out of natural wood or stone, stone counter tops like marble or granite, and modern appliances that have that commercial grade look. Even if you aren’t a huge cook, having an updated, traditional kitchen will put the wow factor in your property and bring the value up.
- Curb Appeal – Growing up, our adult peers always told us, “don’t judge a book by its cover”. While that may be true for people, that is rarely the case when it comes to the housing market. If people aren’t impressed by what you have on the outside or it looks like it can use some TLC, most likely they will have a negative reaction of your place or not even step foot inside. You want to convey the sense of welcome to not only prospect buyers in the future, but for your family and friends as well too!
- Additions – When you add more room and space to a property, you can almost guarantee a good return value overall. Bathroom additions are known to have the highest return value with an average of 86.4% Think about this: if you have a 4 bedroom, one bathroom house, that can be very chaotic for multiple people, especially if it’s a full house. Even a half bathroom can pay off in the end as well. Any other additions like attics, bedrooms, even family and sun rooms returned from 70 to 80 percent of the money spent. You also don’t have to think about gearing the additions for a growing family. Some people want more room and space to store their hobbies or have a home office.
One of the benefits why people go from renting to buying is to have the ability to remodel their home to their look, style, and taste. Not only does a remodel update the look of the area, but remodels in general are known to raise the value of the home overall. If you are trying to remodeling your home specifically to up the property value of your home, take a look at the list above and see which one you would like in general. Either you are using cash up front or a 203k loan, some renovations are worth the overall process and some don’t pay off as much as one thinks. When it comes raising your property value, think about these common remodels.