Every homeowner aims to maintain or boost their property’s value. For that reason, they often consider renovations and upgrades. However, not all renovations can improve a property’s value, warns Graf Property Management. Some remodeling may be expensive but add minimal value to the home. Others can be inexpensive and still boost the property’s value.
One thing about home renovation is that you will not always increase your property’s value by the amount you spend on the renovation. For instance, if you pay $40,000 to upgrade the home, its value will not increase by $40,000.
As a homeowner, which updates should you make that will attract buyers to your property and make them want to pay more to have it?
Most homeowners often ask this question. They want to earn more income from selling their home. However, buyers have varying preferences regarding what will constitute a perfect home. Also, trends keep changing with time. An average buyer’s desire may not be affordable.
How do you renovate your home such that every buyer will want it? We recommend that you consider upgrades that appeal to a lot of people. Doing so will cause many buyers to make attractive offers, and you will choose the most reasonable one. The home updates that can make this possible are bathroom and kitchen renovation projects.
How bathroom and kitchen renovation projects can affect the value of your home
Bathroom and kitchen renovations add the most value to a property. That is because these two areas are among the most beneficial places in the home. Renovations projects in the bathroom and kitchen will make the home more functional. As a result, buyers will want to pay more for it.
The bathroom is one area where people spend time for their sanitary and physical needs. It should be a comfortable and inviting space. That way, the homeowner will feel relaxed when using it.
The kitchen serves as the heart of every home. Depending on how you renovate it, the kitchen can be more than a place to prepare meals. It can serve as a social hub where you spend time with your family and friends. Most homeowners love to host their guests in the kitchen if it is attractive enough.
Every member of the home will benefit from bathroom and kitchen updates. Even when you do not intend to sell the property, the house will be more functional and enjoyable.
How much value does kitchen renovation add to a home?
The value a kitchen upgrade can add to your home depends on the scale. Minor renovations offer about 81.1% return on investments. But you should expect a 59% return on investment from a major kitchen remodel.
Minor kitchen upgrades cost less than major ones. The project may entail upgrades that have to do with the cosmetic appearance of the kitchen. Such renovations may include:
- Refacing the cabinets
- Installing new laminate countertops
- Repainting the kitchen
- Upgrading the light fixtures
- Installing new sinks
Minor renovations are less expensive and faster to complete. Surveys show that they offer the most return on investment.
Major kitchen renovations may involve the following:
- Expanding the kitchen.
- Installing new walls, floors, ceilings, and backsplash.
- Installing new cabinets.
- Replacing all kitchen appliances with new ones.
- Installing high-end faucets and sinks.
Major kitchen renovations cost more money. However, the return on investment is lower if you compare it to minor kitchen upgrades. In addition, high-end kitchen renovation takes a longer time to complete.
If you have a lower budget, we recommend minor kitchen renovations. Doing so will save you more money to conduct many upgrades. But if you are planning to live in the home and your budget can accommodate major renovations, you may consider it.
How much value does bathroom renovation add to a home?
According to the appraisal institute of Canada, bathroom renovations rank second among all upgrades that add the most value to a home.
Bathroom renovations also offer a high return on investment. However, this depends on the scale of the project. You can recoup 56% of your investment after an upscale bathroom remodel. Expect a 64% return for a midscale bathroom renovation and up to 85% returns for minor bathroom upgrades. You will notice that minor bathroom renovations offer the most return on investment. Here, the remodels are for cosmetic effects. These may include:
- Painting the walls
- Refacing the cabinets
- Upgrading light fixtures
- Installing new sinks
- Refinishing the tubs
- Upgrading the vanity
- Caulking the bathroom
The maximum amount you should budget for your bathroom renovation should be about 5% of the property’s value. For instance, if the property is worth $300,000, the maximum cost of the bathroom renovation should be $15,000.
The bottom line
The value your bathroom and kitchen renovation adds to the home will depend on how well you execute the project. Upgrades by professionals have better finishing and add more value to your home than a do-it-yourself project.
