Many homeowners enjoy remodeling and improving their homes. Not all home improvements will add value, but there are some home improvements that will add tremendous value to a home. However keep in mind that a home improvement not only has money value but it also has value to the home owner if it makes the home a more enjoyable place to live.
National Board of Realtors has said that the return on investment of Kitchen renovations is 85% at time of sale.
Adding on a small, or large, addition can add a considerable amount of value to your home. Extra square footage is almost always a good thing and a good selling point to a home. However, you want to make sure that you are not adding too much square footage so that your home is the biggest and nicest home in the area because while this may add some value to your home, you will most likely not be able to get nearly as much back out of this added value as you put in. Thus take into consideration the neighborhood, home sizes and what everyone else has to offer. There is nothing wrong with having a little more to offer than everyone else but you have to really make sure you know where to draw the line instead of going overboard. It can be very easy to put too much money into your home and not see nearly the same return when it is time to sell the home.
Try to stay away from home improvements that are a personal preference, like a swimming pool for example. What you as a home owner may think is great a buyer of your home may not. Home improvements that fall into this category would be saunas, hot tubs, swimming pools and water fountains. If you know you will stay in your home long term then these types of home improvements will add value in terms of property enjoyment for the home owner.
A lot of people think a new roof or landscaping will add value. These "home improvements" might add curb appeal but they are not considered in an appraisal for a higher value.
Most home improvements will add value to your home but local economic conditions will also dictate how much value the improvements will add to your home. For instance, if home values are appreciating in your area then home improvements will add more value to your home. However, if home values are stagnant or depreciating your home improvements may add little or no value to your home.
Updating the kitchen or bathroom is the home improvement that will add the most value to your home. Also, in a slow market a remodeled home will sell faster.
Adding an additional bathroom or bedroom is another home improvement that adds value to your property. However keep in mind that when ever you under take a large home improvement project you will need to get the correct permits from the city where you live. Doing a construction project without permits can be very expensive if the city is made aware and fines you.
Bathroom improvements may add value, but if you are adding a bathroom you must pull the necessary permits and potentially pay the additional taxes required in order to receive an increase in the appraised value of the home.
While the return on investment for renovating a kitchen is substantial, renovating bathrooms in your home can add value as well.