When Home Improvement Does and Does Not Increase Value
A fairly persistent misperception of more than a few homeowners is that a home improvement will increase the value of a residence in an amount on par with the cost of that improvement. In fact, more often than not a home improvement does not increase the value of a residence on par with the amount of money expended, at least not immediately. There are some types of home improvements that do contribute more to enhancing the overall value of a residence. If increasing market value is a prime objective of undertaking a home improvement, you are well served being able to discern how different types of improvements increase the overall market value of a residence.
Kitchen Remodel
Provided you approach a kitchen remodel prudently, home improvement in this area is likely to reward you with the most significant enhancement of the market value of your residence. Indeed, a focused improvement of your kitchen is one type of home enhancement that has the potential to raise the value of your residence beyond the money invested in the kitchen revamp. A prudent kitchen remodel has the potential for increasing the overall value of a residence in an amount between 60 and 120 percent of the amount of money invested in a kitchen remodel project.
The key in being able to take optimal advantage of a kitchen remodel in increasing the value of a residence is to not go overboard in what is done as part or such a rehab endeavor. For example, you should not turn the kitchen into a space that is “fancier” than what is found elsewhere in a residence or even in the neighborhood more broadly. If you make a kitchen standout dramatically from the remainder of a home you can end up actually causing the value of a property to drop. A kitchen that vastly outpaces the rest of a residence leaves the other spaces in a home seeming inadequate, a result that can negatively impact the overall value of the property.
Bathroom Addition
A home with just one bathroom will not shine as brightly as a residence with at least two bathrooms. Thus, one of the home improvement projects you can consider undertaking that likely will notable enhance the overall value of a residence is adding a bathroom in a house with just one. By adding a bathroom in this type of situation you may well be able to realize an enhancement in the overall market value of a home in the range of 80 to 130 percent of the amount of money invested in a bathroom addition.
Add Energy Efficient Windows
Another home improvement project to consider when you’ve an eye to increasing the property value of a home is adding energy efficient windows. A growing number of people on the market to but a home are keen on finding a property that does have energy efficient windows because of the energy savings that can be realized through these windows.
By installing energy efficient windows in your home, you may be able to recoup between 60 to 90 percent of your investment in these types of windows in an increase in the market value of your residence.
Add In-Ground Swimming Pool
As mentioned, not only are there so-called home improvements that can enhance the value of your residence, there are projects you can undertake that will not particularly enhance the value of your or may actually decrease it. Adding an in-ground swimming pool is prime example of something that you nearly always will not want to do if your objective is upping the value of your home.
If you do add an in-ground swimming pool in Southern California, Florida, parts of the Deep South, and parts of the Southwest, you may be able to recoup part of your investment in an increase in the market value of your home. That increase would be somewhere in the neighborhood of between 30 and 50 percent of what you invested in pool installation. On the other hand, if you live in a part of the country with variable seasons, you are likely to see a drop in the overall value of your residence if you install an in-ground pool.
As an aside, if your residence is located in a neighborhood popular with families with children, adding an in-ground pool is likely to create a negative feature. Many parents with children do not want homes that come with in-ground pools.
Sunroom Addition
Sunrooms can be lovely, can be ideal spaces to relax. With that said, because of the costs involved in creating a sunroom in a home, the expense rarely is recouped in a significant increase in the value of a residence. If you install a sunroom, you cannot expect to see more than a 50 to 60 percent increase in the market value of your residence. In other words, a sunroom is not likely to ever pay for itself when it comes time to sell your home.
Before embarking on any home improvement project with an eye to enhancing market value you absolutely must do your homework. This includes researching comparable home sales with the types of features you are considering adding as well as taking the time to consult closely with contractors to get seasoned advice on what you might want and not want to do to achieve your objective of ultimately improving the market value of your home.
