When thinking about remodeling any part of your home, you cannot simply consider how the remodel will make your home look presently. You must also consider the future return on investment that the remodel will provide. Most people know that any kitchen and bathroom remodels will lead to a large return on investment; however, many homeowners seek quality remodeling in other parts of the home as well. As buyers become pickier, they desire homes that look as if they are custom homes, remodeled in all of the important areas. There are four areas that buyers look at when searching for a nearly custom home that will help to gain you a better return on investment.
Most people recognize that remodeling the kitchen leads to a large return on investment. However, few people realize that buyers are no longer just looking at cabinets and countertops as their ideal kitchen design. Instead, many buyers are looking for a walk-in pantry, table space for eating, and a double sink. In fact, these items are considered essential and/or desirable to 84% of homeowners. On average, minor and mid-range kitchen remodels have a return on investment of 81.8%. Therefore, if you’re thinking about remodeling any area of your home, make the kitchen a priority.
Another area of the home that is important to remodel is the bathroom. While bathroom remodels can be somewhat expensive, they almost always generate a high return on investment. You don’t always have to completely remodel your bathroom, but any bathroom improvements, such as paint and a new countertop can lead to an increase in home value. One bathroom remodel that can lead to a large return on investment is the addition of a full bath on the main level. On average, 45% of homeowners rated this a must-have.
While many homeowners remodel their kitchens and bathrooms, realizing the high return on investment, few homeowners recognize the importance of their basements. Basements are one of the things that buyers look for when looking for that custom home. About 66% of buyers look for a full or partial basement when looking at homes. Basement remodels can be relatively inexpensive if you do not plan on changing the structure. If you can change your basement’s description from unfinished to even partially finished, your home value will almost always go up.
The final area that will lead to high returns on investment is in home additions. On average, buyers want a home with a median size of 2,226 square feet. This size is 17% larger than what most homeowners have now. With buyers seeking larger homes, home additions have a great return on investment. In fact, according to a 2005 study for the National Association of Realtors, every 1,000 square feet can increase the sale price by over 30%. If you’re looking to increase the sale price of your home, you may want to consider a home addition.