Remodeling is an exciting opportunity for many homeowners to add value to their homes. But not all remodeling is created equal. As you decide between various home-upgrade projects, how do you know which investments will pay off the most when it comes time to sell?
According to the Remodeling 2016 Cost vs. Value Report (www.costvsvalue.com), to maximize the value of your home through renovation, consider these five improvements and their national average return on investment (ROI) as of 2016, for properties that are considered midrange in price.1
- The kitchen | 65-83% ROI1 – The first room many potential buyers assess is the kitchen. You don’t have to do a full-scale remodel to make the space attractive. Installing new faucets and light fixtures or re-facing the cabinets and drawers are inexpensive ways to give your kitchen a more current look. If you can afford a larger project, consider new countertops, cabinets and stainless steel appliances. While the value added to your home may not always match the cost, upgrading your kitchen can help the house sell more quickly – plus you get to enjoy the upgrades while you still live there.
- The bathroom | 66% ROI1 – Like the kitchen, many homebuyers look closely at the bathroom when house hunting. To give your bathroom a facelift, install a new toilet seat, faucet fixtures and shower head. Re-grouting older tile is another good way to make an ordinary bathroom look newer. For a more extensive renovation, retiling the shower and floor or replacing the sink can add value to your home.
- The basement | 70% ROI1 – A finished basement not only increases home value, it also adds to the square footage of usable space. Finishing the basement can be an expensive project when you take into account waterproofing, electrical wiring, walls, floors and ceiling installation, but the added space can be used for anything from a recreation area to a rental apartment – in the latter case, bolstering your investment even further with a potential source of income.
- Install a deck | 64-75% ROI1 – The inside of your house isn't the only place where you can increase home value. Livable outdoor space is a highly sought-after asset, and a deck can be a high-return home improvement investment.
- Paint the walls | 112% ROI2 – A fresh coat of paint is a great way to liven up your home. Consider this especially if your walls are painted bold, striking colors, since many homebuyers prefer neutral-colored walls when shopping for a house.
If you're interested in renovating to increase your property value but can't afford a large-scale project, consider financing options with Nationwide Bank. With a home equity line of credit, you can add value to your home that will be partially recouped when you're ready to sell.