Before You Pull the Home Improvement Trigger…Is It a Good Investment?

Choose the right home improvement projects for better ROI.

That costly custom crystal chandelier you’ve been eyeing would look perfect in the foyer. You’re convinced that dark quartz countertops would really make your kitchen pop. And your kids keep asking you to install that in-ground swimming pool you’ve hinted about. All these wish-list upgrade items make perfect sense to you. But they may not be so well-received by your home’s next owner, according to the experts. You may never recoup the costs you pay for many home improvement projects when it’s time to sell your home. 

That’s why it’s smart to think long and hard about the return-on-investment (ROI) potential of any home improvement you plan to make before you commit.

home improvement tips

According to Realtors polled for the National Association of Realtors’ (NAR) 2019 Remodeling Impact report, the top five home improvement projects that are most likely to add resale value to your home are, in order, a complete kitchen renovation, kitchen upgrade, HVAC replacement, new master suite/owners’ suite, and bathroom renovation. 

But the enhancements that will likely yield a lower ROI than you hope and are less recommended by Realtors include:

A closet renovation (40 percent of value expected to be recovered from the project), 

Adding a new bathroom (50 percent expected value recovered), 

Converting an attic to a living area (56 percent).

The lesson to be learned here?

“If an owner is looking to sell, they should focus on ROI before investing in a project renovation. But they also need to consider what is going to bring a potential buyer into their home,” says Dr. Jessica Lautz, vice president of demographics and behavioral insights for the NAR in Washington, D.C.

On the other hand, “ROI becomes less important if you’re planning on staying put,” she says.

 

 

With the high cost of home improvements today, homeowners should consider the return on investment carefully – especially if they plan to stay for only a few years after completing the improvement. But if you plan to live in your house for a long time, the financial value of these improvements becomes irrelevant. The improvement will likely become old and dated at a faster rate than in the past, and today’s buyers want new renovations that reflect modern styles.

Case in point: Even if your kitchen was installed within the last seven years and is in excellent condition, you may to consider some sort of renovation in order to achieve a good ROI.

 

 

Fiona Dogan, a global real estate advisor for Julia B. Fee Sotheby’s International Realty, says ROI can vary significantly, depending on the local market and local buyer preferences.

“Generally speaking, remodeling on a lower-priced home has a bigger percentage increase on the home’s value than remodeling a higher-priced home,” Dogan explains.

But regardless of your home’s value or area, some renovations are almost always going to pay off better than others and be a safe bet.

These include finishing rooms that add square footage, upgrading the kitchen and its appliances, updating the master bath and secondary bathrooms, substituting carpeting with hardwood floors or refinishing existing hardwood floors, and adding a fresh coat of paint.

Home Improvement ideas

If you’re planning to stay in your home long-term, you can approach these home improvements with your own design aesthetic and budget as the guiding factors. But if you’re expecting to sell in the next few years, you should design to appeal to a wide swath of prospective buyers and focus on items that buyers often notice first and care about the most.

Likewise, avoid lavish, indulgent, and ornamental updates that may be too personalized for your area market.

Remember that the cost of highly personalized additions such as a children’s theater, elaborate home gym with a rock-climbing wall, or indoor hot tub may never be recovered,” says Dogan. “Think classic, timeless, smart, and sustainable.”

 

Comments

  • Imogene
    April 11, 2021 at 4:12 pm

    I think this is one of the most important info for me.
    And i’m glad reading your article. But wanna remark on few general things, The site style
    is great, the articles is really excellent : D.
    Good job, cheers 0mniartist asmr

  • Petra
    April 14, 2021 at 2:46 pm

    Hey there would you mind letting me know which hosting company you’re working with?
    I’ve loaded your blog in 3 completely different browsers and I must say
    this blog loads a lot quicker then most. Can you suggest a good
    web hosting provider at a fair price? Thank you, I appreciate it!

    0mniartist asmr (http://tinyurl.com)

  • Gertie
    April 15, 2021 at 6:36 pm

    Hi there every one, here every one is sharing these kinds of experience, thus it’s good to read this blog,
    and I used to visit this blog all the time. 0mniartist asmr (http://tinyurl.com/yekoo9gy)

  • Myronwooks
    April 16, 2021 at 12:56 am

    adult personals free
    [url=”http://freedatingsitesus.com/?”]free dating near you [/url]

  • Hulda
    April 27, 2021 at 9:33 pm

    It’s awesome designed for me to have a site, which is useful in favor of
    my knowledge. thanks admin

    My blog post: when gamefly

  • Lois
    April 28, 2021 at 7:52 pm

    Hello, I log on to your blog regularly. Your story-telling style is awesome, keep doing
    what you’re doing!

    Check out my blog; are asmr

  • Josefina
    April 28, 2021 at 11:23 pm

    This page truly has all asmr of the information I needed about this subject
    and didn’t know who to ask.

  • Desmond
    April 29, 2021 at 11:04 am

    I’m not sure where you are getting your information, but good topic.

    I needs to spend some time learning much more or understanding more.
    Thanks for magnificent info I was looking for this information asmr for
    my mission.

  • JavierLot
    May 2, 2021 at 8:07 am

    tinder date , tinder date
    [url=”http://tinderentrar.com/?”]tider [/url]

  • Damien
    May 3, 2021 at 4:39 pm

    Very nice article, totally what I was looking for.

    My homepage gamefly that

  • Eulalia
    May 4, 2021 at 2:04 am

    Hi there to all, how is all, I think every one is getting more from this website, and your views
    are nice in support of new users.

    Also visit my homepage: asmr a

  • Malinda
    May 7, 2021 at 8:00 am

    I read this post completely regarding the resemblance
    of latest and preceding technologies, it’s awesome article.

    my web page; asmr (http://tinyurl.com/)

  • Freeman
    May 8, 2021 at 4:29 am

    Hello there! I know this is kind of off topic but I was wondering if you knew where I could find
    a captcha plugin for my comment form? I’m using the same blog
    platform as yours and I’m having problems finding one?
    Thanks a lot!

    my page :: or asmr

  • Jean
    May 8, 2021 at 10:30 pm

    Simply wish to say your article is as astounding. The clarity in your post
    is asmr simply nice and i could
    assume you’re an expert on this subject. Fine with your permission let
    me to grab your RSS feed to keep updated with forthcoming post.
    Thanks a million and please continue the gratifying work.

  • fauttyfup
    May 10, 2021 at 2:17 am
  • JavierLot
    May 10, 2021 at 11:13 am

    tider , tinder sign up
    [url=”http://tinderentrar.com/?”]tinder online [/url]

  • JavierLot
    May 13, 2021 at 4:59 pm

    browse tinder for free , tinder dating app
    [url=http://tinderentrar.com/]http://tinderentrar.com/[/url]

  • Ryan
    May 15, 2021 at 8:55 am

    scoliosis (tinyurl.com)
    Hi there! I know this is sort of off-topic but I had to ask.

    Does building a well-established blog like yours require a
    large amount of work? I am completely new to blogging
    but I do write in my journal on a daily basis. I’d like
    to start a blog so I can easily share my own experience and feelings
    online. Please let me know if you have any suggestions or tips for new aspiring blog
    owners. Thankyou! scoliosis

Add a comment