Purchasing a home means making an investment from which you can profit in the future.
Keeping your home up to date on maintenance, as well upgrading specific features, can increase the amount you make from your investment.
Specific projects can increase your turnover rate, whether you intend on living in your home for many years to come before selling, or plan to make it “flip” worthy. The value of your home determines how to calculate rate of return on investment.
It’s important to consider what prospective buyers are going to be looking for when they tour your home. If there is a leak in your roof, then having marble countertops or an updated steam shower isn’t going to matter. Maintenance costs can eat money quick; home buyers are afraid of that. So, make sure your remodeling efforts are for areas that are needed as well as wanted.
To help you get the most money out of your future home sale, we have provided five home renovations that will get you the most return out of your investment.
1. Routine Maintenance Comes First
Your newly updated kitchen and bathroom will lose some of it’s glam if there’s water in the basement when potential buyers come to look at your house. Homeowners need to keep the existing structure of the home in tip-top shape. Take care of the necessities of your home first before you indulge in luxuries.
Try to think about your home from the buyer’s perspective. Most buyers don’t have an unlimited amount of money to spend on a house. They have to make their money count. They’re not going to want to spend it on the repair of essential systems. Usually, when buyers purchase existing homes, they consider upgrading things like the kitchen or bathroom themselves. After all, there’s no telling if they’ll have the same taste in style as you. You might think those marble countertops are gorgeous, while the buyer prefers butcher block.
If the maintenance is squared away on your house, then by all means, enjoy your new backsplash and jetted bathtub.
So, you’ve decided to remodel your kitchen. But what exactly do you want to improve? Don’t try to go all out with flashy elements. Try to keep to a traditional look. You don’t know what type of taste your potential buyers have. Lean more towards a modern but simple look that goes with everything, for your kitchen. Wood cabinet refacing, neutral wall colors, commercial-look appliances, stone countertop materials, and natural wood or stone floors are fundamental upgrades that will have your kitchen looking fantastic while having the ability to fit every buyer’s cup of tea.
If you’re pleased with the way your kitchen looks, then maybe you’d like to upgrade that swamp green bathtub in your bathroom to a more modern look.
If your home only has one bathroom, you might consider adding one instead of spending money on upgrading the one you have. Compared to the increase you’ll get from adding a new one, how much is a bathroom remodel worth? If you do choose to upgrade, there are some things to consider.
Think about how often you use your bathtub. Unless you have young kids, you probably don’t have time to use your tub every single day. It’s the same for other people as well. If you have a small bathroom, you might think about converting your bathtub into a walk-in shower instead.
Keeping the inside of your home beautiful is important, but what do people see from the street?
4. Curb Appeal
Let’s face it; first impressions are everything. The first look the buyer makes in the direction of your home will determine if they are even interested in going inside. It sets the mood for the entire showing and course of the sale. Making sure your curbside appeal is captivating is undoubtedly an excellent place to spend your time.
Adding a front porch or a back deck can go a long way in boosting the exterior look of a home.You want to encourage a welcoming feeling that entices your buyers to come inside and feel comfortable. Siding replacement is a popular upgrade, as is the color of the paint and your front door.
There are also simple landscaping hacks you can complete, to give your home a touch of beauty. Adding some trees, bushes, flowers, and even a stone pathway can enhance the look on the outside of your house.
No matter what you do the inside or outside of your home, it won’t amount to what’s not there.
5. Extra Space
Adding on to your house can be a perfect investment. People have different reasons for their desire for additional rooms. Some want sunrooms while others want to expand the home.
Homeowners who want more room, but can’t afford a larger home in their existing neighborhood, drive this demand. When expanding your home, your sale price will increase by the thousands.
Adding bathrooms have the most significant return rate. However, every room you add will increase the amount you’ll get from your investment. More and more people want dedicated places such as offices and man caves. Having extra space will be incredibly appealing to your potential buyers.
Overall, any upgrades you do to your home will increase its value. In turn, that increases your profit when you sell.
Taking care of your investment is a great way to guarantee a good pay-out in the future. When you decide to replace your 30-year-old roof to prevent it from leaking, you are ensuring your future buyers that they won’t have to do it after making the purchase. Put yourself in their shoes. What would you be looking for in a home? After answering that question, make a list and prioritize what you need to do first.
After remodeling your home and deciding to sell, you’re probably going to need to buy another one for yourself.
Contact Twin City Lending and let us match you with a new mortgage loan that fits into your vision.