When it comes to home
improvements, it is important to consider which would be the most profitable in
terms of resale value. Sometimes, it’s possible to get back all, or even more,
of your investment. While some improvements, such as a remodeled kitchen or
added bathroom, may add value to your home, others can actually make your home
more difficult to sell. For example, not all prospective homebuyers will
appreciate a full spa with a whirlpool, hot tub, steam bath, and built-in
stereo system. In the same way, a swimming pool could be seen as a detraction due to the maintenance required.
So, how do you know which
home improvements might increase your home’s resale value? Start by researching
the recent selling prices for comparable homes in your neighborhood. If most homes
range from $300,000 to $400,000, your top resale price will most likely be
equal to or less than $400,000, no matter how many rooms, baths, hot tubs, or
skylights you add. As you consider remodeling, keep in mind that it is usually
difficult to recover any costs that raise the value of your property over comparable
homes in your neighborhood. You may also choose to spend less on home
improvements if you are thinking about moving again in a few years.
The following interior home improvements
may increase resale value:
- An interior facelift: Repainting ceilings,
walls, and interior trim can create a clean, bright, and inviting appearance.
- A remodeled kitchen: The
kitchen is viewed by many as the center of the home, and it often serves as a
combination family room/workplace.
- Addition of a second
bathroom: Many prospective homebuyers want more than one bathroom.
- Fireplace installation: Even
though fireplaces may lose more heat than they provide, they do add
considerable charm to a home.
- Installation of central air
conditioning: Central air conditioning could help sell your house if it is
located in a warmer climate. In colder regions, buyers may be reluctant to pay
extra for it because of the operating expense.
- Improvements in energy
efficiency: Additional insulation, thermopane windows,
and energy-efficient appliances could begin to pay for
themselves immediately, even before selling
- Refinished or newly
installed hardwood floors: Hardwood floors can add character, durability, and elegance
to your home and may add to the sale price.
When it comes to recovering
your investment, home improvements can be a mixed bag. Depending on how long
you plan to stay in your home, some improvements can provide an immediate
return by enhancing your lifestyle. Still, before you begin a remodeling
project, consider what improvements may be most advantageous in terms of resale
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