Best Home Improvements to Boost Property Valuation
Planning on a kitchen remodeling project or looking to sell your home in Dubai? You, probably, want to give your place and new look and feel without breaking your budget. But do you know the home improvements that are going to maximize your property’s valuation?
Well, most of the home improvement endeavors would add a little value to your property but all of your remodeling effort would not increase the property’s value enough for recouping your entire improvement cost. In fact, there are instances when the upgrades don’t increase your property’s value at all and they only add to your satisfaction level while living in that place.
To put things into perspective, home improvements can be divided into four main types when it comes to adding most value to your property. These include:
- Improvements you should make when you have to live in the home yourself with your family
- Improvements that add value for the sellers
- Improvements that are invisible
- Improvements you should avoid when planning to sell the property
Let’s have a detailed look at each of these categories.
Improvements You Should Make When Planning To Live With Your Family
Generally, the projects that bring some additional square footage to the property are considered the best for giving your family a better experience.
There will be better return on investment should you choose to remodel the unused areas of your home into the living areas. The attic and basements make good examples of such unused areas. You can also replace garage doors, or something like that, to add to your convenience and get 97% of the average $3470 cost in return.
When you have to stay in the same property for years to come and want some extra space to get an open feel so that your family members can live there without issues, adding space is a must. Everyone will surely appreciate this new addition and, when you’ll be ready to sell the property, this increase in the square footage will allow you to ask for a better price.
Improvements That Add Value For The Sellers
Major projects do not always mean large increases in the value of a property. So, it is important that when you want to sell your home, go for improvements that add greater value while allowing you to stay within a limited home improvement budget.
Reports show that, over the years, only replacing the front door and adding a steel entry point has provided best ROI to those looking to sell their properties. The Cost vs. Value report suggests that it’s one project that is going to cover its own costs by returning 91% of the total $1471 spent.
Some other projects popular for improving the curb appeal of a property and adding to its value include:
- Adding manufactured stone veneer accents by replacing old vinyl siding – Cost: $8221 with 97% ROI
- Replacement of the vinyl siding – Cost: $15072 with 77% ROI
- Adding wood deck – Cost: $10950 with 83% ROI
When you go for the interiors, a small kitchen remodeling project can give you 81% of the total cost back. This can include replacement of the outdated appliances, adding some new hardware to the cabinets for giving them a facelift, updating the sink and laminate countertop, and replacing the floors.
Home Improvements That Are Invisible
It is quite likely for you to spend a major amount of money on maintenance projects such as replacement of the heating/cooling unit, the septic system or your hot water heater. What you may not know, however, is that even though they add to the comfort level of the residents, most of the buyers won’t be ready to pay for these improvements. They are more likely to expect these functional features to just function and won’t be ready to pay for the wear and tear happened when they didn’t actually own the property.
On the contrary, if these invisible functions are not working properly then they will detract a major chunk from the value of your home. Even when you’re planning to sell the property soon, these issues can’t be avoided as they are definitely going to turn up during home inspection. So, it’s better to tackle them with the realization that you’re actually maintaining the value of your home if not increasing it.
Wait! There is one update which you might consider as maintenance but it actually lies in the gray area for any home improvement project – the roof replacement. Installing new roofs may not be as much of a showpiece as a kitchen renovation project, but experts say that it can add to the value of your home. On average, it gives you almost 68% of return on your investment even if you go for midrange roof replacement.
Improvements You Should Avoid When Planning To Sell The Property
Some home improvement projects often have a low ROI and they may not give back as much as you’d expect. So, these improvements are not really worth it if you are planning to sell the property. These include:
- Adding patio to the backyard – Cost: $54130 with 48% ROI
- Adding high-end master suite – Cost: $256229 with 48% ROI
- A high-end major kitchen renovation – Cost: $125721 with 54% ROI
All these improvements may not be the bad choices, it’s just that they do not really make the best choices for home improvements that can boost property valuation before you could sell it. Just go for these if you plan to live there for some time and want to have a home office, a sunroom, or an extra bathroom. However, you must reconsider your thoughts before you take up any such projects only to add to your property valuation.
Do Some Research Before Renovating Your best option when trying to gauge the expected returns on your home improvements, particularly when you plan to sell your home soon, would be to consult with agents who know the local market. They usually have better insights into local trends with first hand information on how other properties are selling with similar home improvements as you’re planning. It’s surely going to help you make a well-informed decision.