Renovation Costs: A Home Owner’s Guide
While it may be unhealthy to approach general contractors or any home renovation project manager with distrust, it’s prudent that you know a bit about the market and prices before you even get into talks with them. This is so you can properly capitalize on your home improvement.
Some home owners prefer to improve their buildings and incur renovation costs since they feel that it can raise their standard of living and give them more convenient lives. Others want to resell their home and move to a better place. For whatever reason you have, price is going to play a big role.
Essentially, you want your renovation costs to be recouped during the sale. While this is the ideal situation, you also have to consider that you may take some losses to your renovation costs just to make your home more appealing to buyers. In practice, a 75% to 100% recoup of your home improvement projects is optimal.
If you’re planning on selling your house, you want to make the optimal investment to sell your home fast and at a good price. To do so, you need knowledge on what the best trends are. Here are the luxury amenities that most house buyers look for:
- Hardwood floor in kitchen: Kitchen floors should be able to take a lot of abuse in the form of heat and temperature changes. Hardwood floors are easier to clean than other types of floors.
- Laundry room on main floor: A convenient laundry room reduces the need to bring down or take up the laundry a flight of steps, making home owners’ lives more convenient and easier.
- Built-in kitchen appliances: When your buyers see that the house already has pre-installed kitchen appliances, you’re basically giving them the convenience of not shopping for extra appliances before or during their move. While your price may be a bit higher, the transaction and move is more convenient.
- Home theatre: If your house has a comfortable space for watching movies and enjoying other media, the buyers might be more interested in the rest of the house.
- Office on the ground floor: Thanks to the internet and technology, working from home has now become a a viable and acceptable occupation. A home office can be an attractive selling point to professionals and freelancers.
- Kitchen island: A kitchen island can double as a quick dining table and the best place to prepare ingredients. It saves space and creates a welcoming area in a kitchen
As a possible reseller or someone who wants to recoup their losses eventually, here’s a list of what you can expect to get in ROI on your renovation costs:
- Kitchen upgrade:75% to 100%
- Bathroom upgrade:75% to 100%
- Interior painting:50% to 100%
- Roof replacement:50% to 80%
- Replacement of furnace or heating system:50% to 80%
- Expansion (addition of family room):50% to 75%
- Doors and windows:50% to 75%
- Deck:50% to 75%
- Installation of hardwood floor:50% to 75%
- Construction of a garage:50% to 75%
- Fireplace (wood or gas): 50% to 75%
- Central air conditioning:20% to 50%
- Finished basement: 50% to 75%
- Wood fence: 25% to 50%
- Interlocking paving stones on driveway: 25% to 50%
- Landscaping: 25% to 50%
- Asphalt driveway: 20% to 50%
- Pool: 10% to 40%
- Skylights: 0% to 25%
The best parts of your house to upgrade are essentially the kitchen and bathroom. This can lead to a break-even ROI when you sell your house.