Are you looking to update your home to put more value into it? Don’t take a hammer to a wall too fast. Some renovations add value to your house and some are just expensive without showing a return. Below are the top two renovations for adding value and the worst two.
Best Return on your Investment: New Roof
According to the 2015 Remodeling Impact Report a new roof will cost you roughly $7,600. While a new roof isn’t a flashy upgrade it returns 105% of its investment. 32% of realtors said that a new roof most recently helped closing a sale. A new roof can fix leaks and other problems; it can also help with energy efficiency.
Another Great Option: Refinishing Hardwood Floors
Refinishing hardwood floors leads to 100% return on investment. For about $2,500 you can upgrade worn-out floors into a gleaming feature. 82% of homeowners have a greater desire to be home after completing the project.
Worst Return on your Investment: Bathroom
Adding a new bathroom can cost up to $50,000 depending on upgrades when you only get 52% of it back. Unless your bathroom is absolutely terrible it’s just not cost affective to do a total remodel or build another one. Try instead repainting your bathroom, upgrading the fixtures or redoing a light fixture.
Another Lackluster Option: New Master Suite
Only 1% of realtors said that a new master suite recently helped them close a sale on a home. With an average cost of $112,500 to expand or remodel a new master suite it is an expensive project. It doesn’t always work that the more money you put in the more you get out. The percent of value recovered is only 53%. Try instead adding different fabric into the room with new curtains or a new bedding set, rearranging the furniture to maximize space or adding new art to change the feel.
If there is a problem in your house and you want to fix it don’t let the return on investment scare you away. Your happiness in your house is more important if you are planning to live there for some time. If you are planning on selling your house make smart investment choices to maximize your return. Happy renovations!