Renovation projects allow homeowners to improve the comfort and functionality of their homes, but it could also mean costly expenses especially if it’s a major work. However, it is a good move if it’s for significant reasons such as raising the property’s value for selling or preparing it for retirement.
Raising the value of a home in terms of home renovation depends on the project’s return on investment (ROI). In this year’s study of Remodeling magazine on Cost versus Value, you can regain what you invested by 64% if you decide to sell it this year. This was reported after consultants asked the average cost of 30 home renovation projects, from attic insulation to bathroom addition. Real estate agents were then asked to try to assess the potential resale value of such homes to compare costs versus profit.
To give you an idea on which home renovation projects pay more and which ones yield the lowest returns, study this handy visual guide. You can see that even if you have spent a lot on a project, it doesn’t necessarily mean that you will get a lower return. You can also see your best options in terms of material, or which part of the house should be remodeled and which ones can wait.
While remodeling allows you to customize your home to fit your needs and lifestyle, think about opportunities to reduce your energy cost or improving its aesthetics that make it valuable to future buyers.
Let this handy visual simplify the report: