Achieving financial independence through real estate is a popular topic on Camp FIRE. And rightfully so since many peoples’ wealth is tied up in their home. If your path to FIRE includes real estate, then take a look at this list of the best home renovations you can do to increase property value the most.
Best Home Renovations to Increase Home Value
Thinking of selling your home but want to get top dollar? Opting for any of the following home renovation projects can significantly boost the value of your property,allowing you to pocket more cash when you sell. If you want to give it a go, these are the best home renovations to increase property value.
Add an extra bathroom for 130% Return
One investment which will definitely pay off is adding an extra bathroom to the house. Prospective buyers with many members will appreciate multiple bathrooms during the morning rush. It is estimated that a new bathroom can recoup up to 130% of the money you put into the renovation.
In order to achieve this, you need to look for a space which you can turn into a new bathroom. For example, consider underutilized spaces, such as the area under the stairs or storage closets.
There are various approaches you can take when it comes to this update, so you should decide whether you want a full bathroom with all the amenities or if just some elements will make do. You can choose to add only a sink and toilet, or you can include a bath or shower, depending on the square footage you have available. Another alternative would be to add an en suite to the master bedroom if it is spacious enough.
A great way to save money while adding a bathroom is to follow various online and brick-and-mortar sales. You can often find drastically reduced prices of toilets, sinks and other fixtures which have been used as floor models. Furthermore, look at second-hand and antique stores to find some cheap elements which can add personality and charm to the bathroom.
Update the Kitchen for 120% Return
An Australian survey showed that Baby Boomers place more value on an extra bathroom, while Gen Xers are far more interested in a modern kitchen. If you are aware of the demographics of your potential buyers, you can use this information to your advantage.
The key here is to not go overboard! Renovate the kitchen so that it fits in with the rest of the property. If the home has a certain style, keep that same style in the kitchen as well.
Invest in Energy Star-rated appliances which are great for saving money on bills and are better for the environment also.
As simple as it sounds, repainting the kitchen actually goes a long way. Look at some kitchen trends and choose a color which will breathe new life into the space.
How much you spend here depends on what you wish to achieve and the cost can range from $5,000 to $80,000. HGTV estimates that you can expect an ROI of anywhere from 60 to 120 percent.
Finish A Basement and/or Attic for a 70% ROI
If you have an unfinished basement or attic in you home, then you’ve got a great opportunity to boost the value of your home. These spaces can have a great ROI, especially if your property doesn’t have a lot of square footage.
Many people work from home nowadays, and these areas can easily be turned into a home office. A basement can also be used as a kids’ playroom, a teenager’s bedroom or an entertainment room for the whole family.
The options for re-purposing these spaces are basically limitless, so you just have to finish it so potential buyers can imagine themselves spending time there.
An unfinished basement is also a perfect place to add that extra bathroom; that way, you’ll be killing two birds with one stone and definitely boost the value of the house.
This project can result in an ROI of 70%, according to Home Advisor, just make sure to take everything that needs to be done into account and don’t forget about the necessary permits before taking any of these renovation projects on.
Add a Deck to Your Backyard
Adding a deck will definitely make the yard more appealing and the property more desirable. This is one of the more inexpensive projects on this list, but it can result in a bigger ROI seeing as how around 80% of this investment can be recouped during the sale.
How much money you will need to spend on the deck depends on its size and all the features you would like it to have. For example, you can add built-in seating or a fire pit. Moreover, the materials you use will play a big role as well. Look for high-quality materials that will ensure its longevity.
Of course, you can save a lot of money if you do it on your own. However, this is not an easy task so if you’re not skilled with saws and similar equipment, it might be better to hire a professional.
Make it More Energy Efficient
Energy efficiency is often high on people’s list of priorities. We already mentioned Energy Star-rated appliances, but there are plenty of other ways how you can make the property more energy-efficient.
Start off by making sure the house is properly insulated and that there are no cracks where the hot and cold air can escape. Moreover, you can replace the doors and windows with energy-efficient models to prevent the same issue.
For better temperature control, you can also install a Programmable Thermostat for under $20 bucks. Other than energy, you can also add upgrades that save water. For example, replacing the old faucets and shower heads with low flow models and opting for dual-flush toilets is a great way to be eco-friendly.
Best Home Renovations?
While there are other renovation projects you can opt for, these five are some of the best home renovations that are bound to boost the value of your property, so choose one or more of them and get renovating.