If you're thinking of selling your home, you may be considering some remodeling projects to boost your selling power. And even if you decide to stay put for a while and enjoy the upgrades yourself, you may be curious about how much you could increase your home's value through your desired projects. Various home remodeling projects can make your home more valuable, depending on the project you choose and where you live. In general, though, if your updates aren't too niche, they should improve your home's value and desirability.
How to Calculate Home Value
As a homeowner, or someone on the market for a home, it's essential to know a home's worth. While the short story is that a house is worth whatever a buyer is willing to pay for it, determining the actual value can be a little more complicated. Plus, the methods used to calculate a home's value may differ depending on who you consult. An online estimating tool, a real estate agent, a mortgage lender and a tax assessor may all come up with unique amounts for the same house.
House values can also change over time, and homeowners considering a renovation project will want to know how to calculate their home value after a remodel. If you're applying for a renovation loan before your remodeling project, you'll want to have a clear-cut idea of the home's monetary worth and how it could change. Various renovation projects bring different returns on your investment, and can vary in separate areas of the country. However, if you want a reliable general estimate, calculate 70% of your renovation project's budget and add this number to your current home value.
If you want a more accurate estimate, find out the average ROI for renovations in your city, or the project you're planning to do. Use this percentage instead of the 70% in the general calculation. Specific renovations may have a much lower or higher return on investment.
What Types of Remodeling Raise Home Value?
So, what remodeling projects increase home value? As we mentioned, various upgrades can have very different results on ROI and overall home value. If you are wondering what to remodel to increase home value, here are our top picks.
- Landscaping and curb appeal: Some projects that give you the most bang for your buck involve landscaping and other outdoor projects that boost your curb appeal. These include exterior paint jobs, driveway and walkway paving, planting trees, shrubs and gardens, adding outdoor furniture and decor, having a well-manicured lawn and any other aspect that boosts a home's curb appeal.
- Opening space and adding light: In general, any home remodeling project that opens a space or adds natural light will significantly add to the overall home value. These could include taking out a wall to improve a home's flow or create a more open floor plan. Other methods that accomplish this include adding a vaulted ceiling and expanding windows and skylights.
- Home office addition: In today's world, more people than ever are working from home at least part of the time, and a dedicated home office space can boost a home's value to prospective buyers, plus make the home more convenient and practical. The best home offices have plenty of room to work with, as well as ample electrical outlets for laptops and phone chargers.
- Basement remodels: Unfinished basements hold tons of potential for updates and customizations that can boost your home's market price. Consider finishing your basement and creating space for a playroom, entertainment room, guest space, bar or whatever suits your family. Adding a bathroom to your finished basement will increase the financial worth even more.
- Adding a deck: Installing a deck or patio enhances your outdoor space and is one of the highest-ROI remodeling projects. To enhance your deck project and ensure a longer lifespan so you can still reap the ROI years later, be sure to use the highest-quality building materials. You should also consider upgrades such as a fire pit and built-ins like planters and benches.
- Kitchen upgrades: One upgrade that's almost sure to increase home value is a kitchen remodel or upgrade. However, there are some caveats to this remodeling project. Sometimes smaller and simpler kitchen projects reap the highest ROI, such as upgraded appliances or adding a window over the sink. There seems to be a fine line with kitchen remodels, and if you take the project too far and add high-end luxury items that go far beyond the typical kitchen for your neighborhood, it could have the opposite effect and be a turnoff to buyers. If you'll use the upgrades and you plan on staying in the home long-term, by all means, go for it. But if you plan on moving in the next few years and your upgrade includes niche or luxury items, take a moment to consider your remodeling project.
Bathroom Remodeling's Effect on Home Value
Does remodeling a bathroom increase home value? Absolutely! Adding an extra bathroom or upgrading existing ones creates convenience while boosting your home's asking price. Outdated bathrooms can be a turnoff to potential home buyers. However, even minor updates like bathroom fixtures are more appealing to buyers. Adding new bathroom amenities like sinks or showerheads can extend your remodeling dollars even further for more home value.
Successful bathroom remodels first address any problem areas like leaky plumbing, malfunctioning fixtures or damaged areas. If everything is functioning as it should, you can focus on upgrades and cosmetic improvements. It could be as simple as a fresh coat of paint and some new drawer pulls, or involve a completely different layout with new flooring, tile, sink, toilet, tub or shower. Upgrades could also include heated flooring, double sinks or additional storage space. In any case, all these bathroom remodeling ideas will bring a significant ROI and can increase your home's value.
Home Remodeling Contractors in Northern Virginia
If you live in Northern Virginia, Hometech Services is your go-to for home remodeling contracting. Our professional and experienced contractors can handle any remodeling project you can dream up. Our affordable and trustworthy services can help you bring your vision to life. Contact us today to get started with a free in-home consultation. We can't wait to hear from you!