Striking a balance between home renovations that enhance the enjoyment of living in your home while also adding value to your home can be tricky. In order to achieve the highest return on dollars spent, it's important to know which home improvements best retain their value and attract prospective buyers. There are some common home improvements that are worth considering.
Pools are luxury items, and installation price is sometimes only the tip of the iceberg. Ongoing maintenance and upkeep boost the cost over time, and heating a pool can be quite expensive and the initial thrill of a backyard pool tends to fade quickly. Pool season is typically limited; heating costs can be a burden. Add the cost of landscaping and outdoor furniture, and the price soars. Except in select locations, a backyard pool may return only about 30% of cost, according to Investopedia.
Additionally, many states and local communities may require fences or gates around your pool to restrict unauthorized access. Homeowners insurance cost may also increase due to a backyard pool as well.
A dedicated movie space was all the rage for new homes not too many years ago. Today, that's not the case. Multi-use gathering rooms are much more likely to be the choice of today's buyer, even in media-rich households, than a single-use room. It's estimated that a dedicated theater is a niche feature with an average ROI of only 25 to 35%
Room additions are often expensive space. They may involve building a new foundation, walls and roof, plus the cost of electrical wiring, doors, windows, flooring and finish out. If new plumbing is required, costs can be even higher. The price of a new master bathroom with spa features could easily run to many thousands of dollars. Though the best return on investment are bathrooms - adding a bathroom in a home that only had one for example, has a higher ROI than adding one when they are already several.
ROI for specialty room additions—a home office or man cave—is generally much lower than desired. It's always worth the effort to try to reconfigure existing space or renovate a basement or attic.
Turning a garage into additional living space can solve space dilemmas, but it's considered a poor investment. A high percentage of buyers consider a garage a requirement. Most home buyers not only want the space to park two vehicles, but have additional storage as well. Additional interior footage seldom compensates for loss of garage convenience. The ROI for a new garage addition is also relatively low. So converting an attached garage and adding a new one is not a smart option.
Kitchen & Bath Remodels
Possibly the highest ROI is in kitchen and bath remodels. Unlike adding a new bath, or enlarging a kitchen, remodeling an existing one is often a good idea. Remodeling often includes new or refinished cabinets and counter tops. Remodels also include new flooring, paint and new lighting and plumbing fixtures. Kitchen remodels also often include new appliances such as stoves, dishwashers and refrigerators. Out of all of the home remodel choices, the remodel and updating of a kitchen or bath have the highest ROI.
Not all home improvements have equal value. The wow factor is less important than function and lasting appeal, and less costly renovations often show higher return. So if considering selling a home or simply staying in it for many more years, consider the return on investment. And if considering selling your home, a local Gallatin TN real estate agent can be a great resource for which home improvements have the greatest value in your area.
The Ashton Real Estate Group of RE/MAX Advantage
The #1 Real Estate Team in Tennessee and #2 RE/MAX team in the World!