Renovations that add value - Why Investing in Property Improvements is Key to Increasing Value

As a homeowner, it’s your job and in your best interest to keep up with making improvements and renovations to your property over the years. It not only makes your spaces and home more functional but they help increase the value of the property by making a home more appealing to potential buyers.

In addition, it enhances the aesthetics and overall condition of the home. When it comes time to sell you’ll likely be able to list it at a higher selling price. The result is a higher market value due to the home being updated and well-maintained which is more desirable in the market. Here we’ll dive into and discuss what types of renovations add the most value and the importance of ROI.

Home Renovations that Add Value

You have many different projects that you can choose to tackle as a homeowner. However, if you want your money to go further and your property to be worth more then it’s wise to focus on completing the tasks that will get you a return on your investment.

Some of the most important and desired improvements include installing a new roof, creating extensions, renovating the attic, and remodelling the kitchen and bathrooms.

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The ROI of Home Upgrades

ROI in property value terms refers to the Return on Investment of a project. What this means is that it measures the percentage of the cost of a renovation project that is recouped when you decide to sell the property.

You take the amount of money spent on the project relative to how much value the renovation added to the property. As a homeowner, your goal is to determine which renovations are most likely to gain the most possible financial benefit when it comes time to sell. Some projects such as kitchen remodels will provide higher returns. 

The proof of this is in the numbers. According to Remodeling Magazine’s data, it shows ROI for projects like kitchen remodels is at an average of 71% while bathroom renovations will average around 64%. Other projects that will yield a higher ROI are finishing the basement, renovating the attic, and adding livable square footage.

Cost Vs. Value Consideration

You should also take into account cost versus value considerations when deciding what to improve in and around your home. You want to confirm that the investment you are making ensures that the potential benefits outweigh the expenses.

It will allow you to mitigate risk and minimise unnecessary spending while maximising your return on investment. You need to focus on gaining significant positive outcomes while balancing cost-efficiency. You may lose money if you neglect necessary upgrades or accidentally over-invest. 

Future-Proofing Properties

There are certain buyer preferences and home renovation trends you’ll want to make sure you’re aware of and incorporate. For example, implementing smart technology or using sustainable materials will add value.

This will give you a better chance of being able to quickly sell your home after making significant improvements and investments in your property. 

Next Steps

You now are aware of some of the most important renovations that add value to a property. If you’re going to increase the value of the home then you must be willing to invest in property improvements over the years. 

If you’re ready to get started on your next home renovation then get in touch with us today to receive a free quote.