#1 Adding A New Pool
Image source: homesthetics.net
Unless you live in a home that will only get (Northeast, Northwest buyer’s) summertime use out of a pool, don’t add one to the home for equity purposes because many new buyers will not want the maintenance involved when there aren’t many hot months to enjoy it.
However, if you live in areas that hardly get any cold weather like Florida, California, etc. adding a pool will increase the value of the home. Many Floridians love sitting by the pool all year round.
Pool installation cost:
Adding a pool to your home could cost you on average $25,000 – $100,000 depending on the style, size, and any additional wow factors. However, it will not be money recouped (regained from investment), and if you live in the northwest, northeast areas having the pool dismantled may be a part of a contingent of potential buyers.
So not only do you lose money installing the pool, maintaining it for how long before selling, you may lose money removing it. Even the hotter states have trouble selling a home with a pool because of parent’s fearing liabilities for accidents, etc.
It’s a case of it could add a lot of value, and it may hurt the value of the home reason why it made the list of things you could do to increase the value of the home.
#2 Upgrade the Kitchen
Image source: laurensthoughts.com
When you’re thinking of remodeling a home to increase its value for home insurance purposes or to sell the number one weapon would be the kitchen. A kitchen is the most high-traffic area in the home where people eat, socialize, and prepare meals for their families on the holidays.
Engineered countertops of stone and granite is a terrific start along with stainless steel appliances. Also, think about having an open space concept because many people like to be a part of the party they’re hosting instead of being hidden in the kitchen as they cook the food for the guests – and parents can have a good eye on the kids while preparing meals.
Kitchen remodel cost
For a new kitchen remodel, the national average for 2016 was $119,909 total. That includes everything from labor, materials, etc. Much cheaper if you DIY but only do that if you KNOW you can pull it off and leave it looking like a professional did it. Many buyers can spot a DIY job, quick, and it’s a turn-off.
The resale value of the $119,909 major kitchen remodel was $73,707 giving the seller a recoup of 61.5% out of the 100% invested. The percentage has gone up from the 2015 average.
There will be a link at the very end of this post that will take you to a ‘cost verse value’ reference guide for each state showing the national average spent and recouped for each common home remodeling job for the year 2016.
#3 Transform the Bathroom
A bathroom is the most underrated room as most people think “I don’t spend enough time in the bathroom to make it look like a place worth staying in long.”
However, many new buyers want an upgraded bathroom, and Lendor’s will see the update as added value. You don’t even have to go crazy buying new items as you could reglaze the bathtub instead of getting a new one.
You could also add radiant-heat flooring, a walk-in shower, or stunning fixtures. Flushed lighting, beautiful vanities with modern basins, etc. endless ways to upgrade that will improve the home’s equity.
Bathroom remodel cost:
For a new bathroom remodel, the national average for 2016 was $57,411 total. That includes everything from labor, materials, etc. and as the kitchen, it would be much cheaper if you DIY but only do that if you KNOW you can pull it off and leave it looking like a professional did it. Many buyers can spot a DIY job, quick, and it’s a turn-off.
The resale value of the $57,411 bathroom remodel was $32,998 giving the seller a recoup of 57.5% out of the 100% invested. The percentage has gone down from the 2015 average.
#4 Energy Efficient
Image source: realtybiznews.com
Energy efficient homes have been becoming increasingly popular these last few years, and we don’t see this trend going anywhere as homeowners are looking for ways to keep their home colder in the hot months and the warmth in during the cold months in a cost-effective way. Lowering one’s utility bill is another reason for going green, and this will add value to the home.
Try adding in a few things like solar panels, energy efficient lighting, high-efficiency water heating system. Also, purchase energy star appliances like (some are tax deductible) a dual flush toilet, and a faucet aerator to name a few.
According to the American Council for an Energy-Efficient Economy, the yearly average saved in utilities was around 8k+ for each household that had the minimum standard in energy efficiency.
Imagine the savings if you added MORE than the standard that will be very enticing for new buyer’s and lenders. It may cost extra money upfront to get energy star appliances or new energy saving additions, but the savings over time earns you a nice regain in your investment and added resale value.
#5 Sprinkler System
Image source: georgiasprinklers.com
The first thing to grab the attention of potential home buyer’s is the front yard landscaping. A beautiful, luscious green grass with vibrant flowers all around. Sometimes to achieve this one would have to hire landscapers or do it themselves. You could forego the flowers but do install a sprinkler system to keep your grass looking stunning and healthy.
It will add curb appeal and it is a terrific investment.
#6 Say Goodbye to Carpet
Image source: plushardwoodflooring.com
Carpeting is the most difficult to maintain (especially with kids and animals) and holds dust and debris which is horrible for allergy sufferers. Many home buyer’s are looking for hardwood flooring so don’t even bother adding carpet to the house unless you plan to stay a long time and love carpet. You don’t have to buy the expensive 100% wood flooring as engineered looks great and is affordable.
#7 Garage Needs to be a Garage
Image source: organizedliving.com
Leave the garage as a garage. Too many homeowners convert the garage into another bedroom or a cluster fest of broken holiday decorations. Buyers want a real garage to store their cars from the harsh elements of Mother Nature and need a safe place to store them along with their washer-dryers, etc.
Converting the garage into an extra room is terrific if you’re planning to stay and are not worrying about Private Mortgage Insurance, but if none of that applies to you let the room stay a garage.
Garage door cost:
For something as simple as installing a garage door replacement will cost $3,140 upfront but the recoup will be $2,830 which is an impressive 90.1% from your investment.
#8 Storage Space
Image source: georgiacloset.biz
People go crazy over storage. We all love storage space. We humans have so much stuff and nowhere to put it and at the same time, we love an organized home.
Adding extra cabinets and storage units to the home will add more appeal to future buyer’s adding value to the house.
We don’t have any price values to give you on the cost verse value of adding storage to the home. However, if you’ve ever watched the HGTV’s show “Property Brothers,” as much as we have you will see how nearly every episode the buyers are squawking about their desperate need for a lot of storage space. 😉
Image source: greenpropainting.com
When upgrading the home, many people think a fresh coat of interior paint will do the job. However, according to consumer reports if you add a new coat of exterior paint you could expect the value of the house to increase by 2-5% because of the curb appeal.
Also, it’s much more economical to apply fresh paint to the exterior than to have new siding installed while also eliminating the costly repairs for future buyers that commercial siding entails.
Home painting cost:
According to mrsdpainting.com adding a new coat of paint to the exterior of your home can increase the value almost $25,000 which is far higher than the cost to do the job itself.
#10 Add Dimmers
Image source: recessedlighting.com
Implementing recessed lighting with dimmers for each room along with some decorative wall sconces with lighting will show the new owner’s the ambiance potential the home will provide. Having the control of the lighting strength will add value to the home.
#11 Room Addition
Image source: agapeconstruction.com
You don’t need to go to the extreme like the picture shown above, but something small like a family room addition can add resale value to the home while allowing you to recoup a good percentage of the money that you invested for the installation.
Home addition cost:
For a new family addition of 16 X 25 foot, the national average for 2016 was $86,615 total including labor and materials.
The resale value of the $86,615 new family room addition was $58,807 giving the seller a recoup of 67.9% out of the 100% invested. The percentage has gone up from the 2015 average.
If you were to add that two-story addition like the picture shows, the average would be $171,056 with a recouped value of $118,555 which is 69.3% of the investment. The percentage has gone up since 2015.
#12 Entry Door Replacement
Image source: thewindowgeeks.com
A lackluster front door is not something you want new buyer’s or lender’s you’re trying to get a deal from see. Replacing the front entry door can add value to your home and increase the curb appeal.
Replacement door cost:
For a replaced entry door using fiberglass, the national average for 2016 was $3,126 total including labor and materials.
The resale value of the $3,126 for the new entry door was $2,574 giving the seller a recoup of 82.3% out of the 100% invested. The percentage has gone up from the 2015 average.
Now, if you were replacing the entry door with steel, the average is $1,335 to install and $1,217 recouped at 91.1%. That percentage is great, but it went down since 2015. Regardless of it going down in resale value it is a terrific return on investment, and the numbers could go back up in 2017.
#13 Roofing Replacement
There will never be a debate on whether a replacement roof adds value to a home (unless you had the ugliest roof installed by a non-professional) because it is a fact that will remain the same.
Roof replacement cost:
For a replaced roof, the national average for 2016 was $20.142 total including labor and materials.
The resale value of the $20,142 for the replacement roof was $14,446 giving the seller a recoup of 71.7% out of the 100% invested. The percentage has gone up from the 2015 average.
With all this said don’t worry about putting the full 20% down because it is not required. You can use the rest to add upgrades to your home that will provide a more comfortable environment while increasing the value of the home – that will go to getting rid of the PMI (Private Mortgage Insurance) in the end regardless of the hefty down payment.
We hope you enjoyed our post on What the Banks Don’t Tell You About PMI Mortgage Insurance. Here is the reference link to the cost vs value guide found on remodeling.hw.net, as we promised.