Not only are renovations exciting due to the improvements they bring your home, but they also can increase your home's resale value. However, it’s important for homeowners to practice caution when choosing which renovations to take on, because some might have an adverse effect on property value. Read below to find out which projects pay off in the long run, and which ones hurt at the point of sale.
5 Features That Increase Property Values
1. Updated kitchens and bathrooms
It’s true what they say: kitchens and bathrooms sell a home. Investing some cash in these spaces can substantially increase the return when your home is sold. When deciding what to change, stay away from niche styles; distinct tastes and designs won’t help you appeal to a majority. To help with your home’s appeal, use temporary items such as hand towels, wall décor, rugs, and floral arrangements to “stage” your home during appointments. However, use these sparingly, as decluttering these spaces is nearly as important as renovating them when it comes to improving their general state. Overall, it’s important to make kitchen and bathrooms seem spacious. To make these rooms feel upgraded on a budget, new light fixtures, mirrors, and towel racks work wonders. At the very least, a good scrub can go a long way.
2. Energy efficient features
Energy efficient air conditioning units, furnaces, and hot water heaters stretch your dollar in the long run, and act as a valuable selling point for your home. You might want to consider replacing these systems if they’re older or in shabby condition. With this in mind, it’s important to make the correct decision on what unit to buy. Have a technician perform a load calculation to determine what size unit is appropriate for your home. This is especially necessary if your home’s energy retention has changed due to new windows, insulation, or room additions. A furnace’s energy efficiency is measured as an Annual Fuel Utilization Efficiency (AFUE) rating, which is written as a percentage. The higher the percentage, the more heat that’s created per fossil fuel used. An AFUE minimum is at 80%, but some units can reach near total efficiency at around 98%.
There are smaller, less expensive features you can add to help a room maintain a comfortable temperature. Window treatments, for instance, help retain cool air inside and deflect heat from outside. Ceiling fans are another inexpensive way to help keep energy costs low by circulating air around a room and decreasing the necessary output from heating/cooling systems.
3. Creating an open-concept layout
A home’s floor plan is one of its most significant and permanent qualities. A closed-off, segmented floor plan makes a home feel smaller and more dated. If possible, remove non-structural walls or create openings in shared walls (either a wide archway or large framework) to connect two rooms. Where walls are structural and cannot be removed, decorative columns or posts are a good alternative that maintains the structure, while still producing an open concept. If it’s not possible to alter a wall or floor plan, adding mirrors effortlessly creates the illusion of size and depth.
Although investing in home improvement does not always equal added property value dollar-for-dollar, the reason they enhance value directly relates to demand and popularity. For example, finishing a basement, especially if it means having an additional bathroom, is popular as it creates additional living area for people to utilize. Even if the money spent on doing so isn’t equally received in resale value, by avoiding items that are an over improvement for your area and focusing on what typical buyers want most, you’re more likely to end up getting the most bang for your buck. Homeowners considering significant improvements should research their neighborhoods to see what buyers are looking for. Visiting open houses and researching recently sold homes can help them gauge what their market will bear.
Read More: https://blog.dwellworks.com/top-5-features-that-increase-or-decrease-property-values
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