A great way for homeowners to increase the value of their house is to remodel existing rooms or add on to its current plan. Some choose to build bonus rooms and offices, while others add new appliances, fixtures and cabinets to modernize rooms and make their home more attractive to future buyers. But, at what point do you stop spending money on your home and buy a bigger place? And how much is too much when it comes time to recovering remodeling costs through a home sale? For example, if you spend $1,000 remodeling your living room but didn’t expand your small bathroom, the chances of increasing the number of interested buyers are slim. Here are a few tips for homeowners to add value to their homes.
1. Preserve your home’s character.
Nothing sticks out more than a new addition that is in a completely different architectural style. Be consistent. Recognize your home’s character and stay within its framework.
2. Kitchens and bathrooms sell homes.
Newly upgraded cooking spaces and cabinets can attract more buyers and command a higher list price than a comparable home on the market. Simple repairs that are made to last will bring you the biggest profits upon sale.
Expanded bathrooms are the most popular attraction for new homebuyers, according to the National Kitchen and Bath Association. Be sure to install modest, solid amenities, as it is easy to quickly overspend on bathroom fixtures.
3. Don’t overlook the details.
Replacing worn carpet, tile and wood floors can immediately pay off. Updating paint colors in all areas of your home can also prove beneficial. It is recommended to use neutral colors when adding new floor and wall coverings, such as gray, beige and off-white. Neutral colors appeal to more buyers, so fewer buyers will turn away because of differing tastes.
4. Focus on aboveground living space.
Buyers are typically more interested in aboveground living space – not basements, yards and walkways. A swimming pool can be a poor investment if installed for the sole purpose of increasing a home’s value. It is rare that a pool’s cost will be recovered in a home sale. It can also be a negative feature for potential buyers with very young children.
5. Don’t go overboard.
Concentrate on improving two or three items in your home. Stay simple with your remodeling project and look at your home as though you were the buyer. More than likely, the time and money you spend adding quality to your home will be rewarded with greater profit at selling time.
Here is a cool infographic from the California Association of Realtors that show what home improvement projects paid off in 2015: