There are two main reasons why homeowners invest in a home renovation or major redecorating project: They want to enjoy the results of the new kitchen, bathroom, flooring or other improvement they’ve made; and/or, they hope that the money they spend will come back to them – at least in part – when they sell their home.
So which projects are most likely to increase the resale value of a home? A story by Joanne Cleaver, featured on MoneyWatch.com last year, identified five renovation projects that give you the most bang for your renovation buck.
Floors. Old, scuffed or dated flooring tends to get noticed by home buyers, regardless of how well the rest of the room is decorated. New flooring – especially stone, ceramic tile and hardwood – can make any room look larger and more inviting.
Kitchen. When it comes to selling your home, the kitchen is one of the most important rooms. The more modern, new and spacious it looks, the faster your home will tend to sell. That’s why you can expect a pay back of up to 80% of the cost of a kitchen renovation.
Bathrooms. Who isn’t impressed by a new and gleaming bathroom with a big shower, modern faucets and other attractive décor? That’s why hotels spend so much time and money making their bathrooms look great. According to the Cleaver article, homeowners tend to get a pay back of up to 75% of the cost of a bathroom upgrade.
Closets. Any improvement that makes a closet look roomy and organized tends to result in a pay back of most of its cost. Even something as simple as installing a good closet organizer can have a dramatic effect.
Energy-saving upgrades. In this age of increasing energy costs and environmental concerns, home buyers are drawn to such features as energy-saving windows, lighting, thermostats and more.
Keep in mind that home improvements don’t just have an impact on the selling price of your home, they also help to sell your home faster.