It is a proven fact that many home remodeling projects significantly impact the value of the home. Certain upgrades and renovations pay dividends when it comes time to sell your home, allowing you to recoup the money you’ve invested in the home improvements.
As always, there are exceptions. There is one renovation that stands head and shoulders above the rest (or should I say below) when it comes to receiving a significant return on your investment:
The Home Office
Does this surprise you? It may seem like a home office would be a boon for your home at sale time, especially considering the number of people who telecommute and work online. But the fact of the matter is, a home office seldom recoups more than 45% of the money invested in the remodel.
Why? Full-on home office renovation often takes up a bedroom, which new owners might want to be able to convert back into a bedroom. If you’ve spent the time and money having built-in furniture added, media wiring, and other “office like” details installed, it represents a cost to restore or lost-usage for the new owners.
Of course, if you need a home office and want to have the home office of your dreams, it might be worth it to you to put the return on investment aside. But if your main goal is to have a substantial return on your renovation investment, this is one project that may not pay off at the time of sale.
Renovations Buyers Like to See
Now, on the other hand, what renovations do buyers like to see? Most improvements that elevate the value of your home in the eyes of buyers without breaking your renovation budget is an excellent choice.
The National Association of Home Builders reports that these following features are on buyers’ most wanted list:
- Separate laundry room (91% preference): This is a small-scale project, expected cost $1,000 to $5,000
- Patio (87% preference): A concrete patio can run roughly $975 per 120 square feet.
- Garage storage space (85% preference): You can expect to pay $2,025 – $2,363 for 380 square feet of garage storage.
- Walk-in kitchen pantry (83% preference): Homeowners prefer walk-in pantries over the reach-in closet. Each design varies in cost, but the report says there is a distinct preference for perspective buyers.
- Walk-In Closet in Master Bedroom: Cost varies by design. These are gaining popularity with first- and second-time homebuyers.
- Eat-in kitchen: Cost $1,000 to $10,000. These are especially attractive to families with children.
Renovations are a bonus when it comes to selling a home. If you are you planning to sell your home before or after the home improvements, give me a call. I’d be happy to help you find a current value for your home and discuss if any renovations may help increase the market value.