So, you’ve bought your first home, and now, you want to start adding value to your new investment. Many times, homeowners believe that any improvement adds to a home’s resale value.
However, that’s not always the case. When putting your money into something as valuable as a home, you may forgo research and invest in an improvement that doesn’t add value. What then?
Hopefully, this article, along with information from the 2017 Cost Vs Value Report, can help you avoid the least valuable home improvements. However, even if you don’t recoup the entire amount of money you put into a home remodel, is it still worth it?
Most people in Mercer and Darke counties don’t buy a home merely for its resale value. Most buy it to live in it. If you plan to stay in the home for more than 5 years and you can’t stand the kitchen or the green tile in the bath, it may be well worth it to increase your enjoyment of the home.
Oftentimes, homeowners see the kitchen as a treasure trove of ideas, bringing about easy ways to add substance and profit to a home. Yet, according to recent trends, putting money into the kitchen can actually lower your return on investment. Making minor repairs, such as modernizing appliances with more energy-efficient models, updating countertops, or replacing faucets, recoups overall cost by 80.2%. Yes, you lose nearly 20% of your original investment, but you may save money in the long run by reducing water and electricity usage.
Major kitchen repairs, such as adding new ventilation systems, installing new wood cabinets or stainless-steel sinks, only bring a return on investment of 65.3%. However, if looking at your dingy kitchen only brings you down, isn’t it worth it to bring a smile to your face?
Updating an old basement can help your home feel cozier and more inviting. On the other hand, if you are gearing more toward dollar signs, you may want to look elsewhere. Many folks like to add class to their basement by adding focal points, such as a minibar with cabinets and countertops.
While in theory, this does add visual value, you find yourself only recouping roughly 70% of your overall basement investment. The average investment for a basement remodel coming in at $71,115, and the average resale value is $49,768.
However, money isn’t everything. If remodeling the basement provides you with extra space for your children to play or to entertain, it may be well worth the cost.
According to the National Association of Realtors, 80% of homeowners say that the bathroom is the most requested remodel. In spite of the fact bathroom remodels currently bring in only a 64.8% return on your investment, a bathroom remodel may prevent a family quarrel.
It is important, however, to not go overboard with a bathroom upgrade. The bathroom remodel can easily become the most time-consuming and expensive room on your remodeling list. Done right, it can become a sanctuary that may spare your sanity even if it doesn’t improve your home’s resale value.
While we would never tell you how to remodel your home, this information is here to help point you in the right direction. Everyone buys a home for a different reason: Some buy it to raise a family and stay for the long-term, while others buy homes to quickly invest in them, then flip for a profit. Whatever your plan may be, be sure to contact Mercer Savings Bank for investment guidance, questions, and needs. Call 877-672-4743 or contact us online.