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Making Sense of Home Improvements: What Adds Value? - 4/24/2024

Before diving into renovation projects, it's important to understand which upgrades are likely to boost your home's value and which ones may not yield a significant return on investment. While certain improvements can enhance your home's appeal and attract potential buyers, others may fall short of expectations.

It's prudent to explore examples of home improvements that have the potential to increase your home's value, as well as situations where renovations may not have a substantial impact on its worth. By gaining insights into these factors, homeowners can make informed decisions and maximize their return on investment when upgrading their properties.

Home improvements that may increase the value of the home:

Hardwood floors ... Refinishing or updating to wood floors have good appeal and have a high return on the cost.

Kitchen Remodel - Updating the kitchen with modern appliances, countertops, and fixtures can increase the home's value by improving functionality and aesthetics.

Bathroom Update - Renovating bathrooms with new fixtures, tiles, and amenities can enhance the home's appeal, especially if it increases the number of bathrooms or improves their condition.

Curb Appeal - Enhancing curb appeal through landscaping, exterior painting, or updating the front door can make a positive first impression and increase the home's perceived value.

Energy-Efficient Upgrades - Adding energy-efficient features such as insulation, or windows can attract environmentally conscious buyers and reduce utility costs, thereby increasing the home's value.

Open Floor Plan - Removing walls to create an open floor plan can improve the flow of the home and make it feel more spacious, which may appeal to modern homebuyers and increase value.

Home improvements that may not affect value significantly:

Over-Personalized Upgrades - Home improvements that are highly customized to the homeowner's taste, such as extravagant or niche features, may not appeal to a broad range of buyers and may not recoup their cost.

Low-Quality Workmanship - Poor-quality renovations or DIY projects that are not executed professionally may detract from the home's value rather than adding to it.

Excessive Upgrades - Spending too much on renovations relative to the home's overall value for the neighborhood may not yield a commensurate increase in value.

Unpermitted Additions - Home improvements made without the necessary permits or that violate building codes may lead to complications during the selling process and may not add value to the home.

Overcapitalization - Investing in upgrades that exceed the anticipated resale value of the home for the neighborhood may result in diminishing returns and may not justify the expense.

While there are many powerful investment aspects of homeownership, not all the money spent on it will necessarily increase the value.  If the cost of some renovations won't be able to be recaptured in the sales price, homeowners should recognize that in advance of making them.  If they decide to move forward, they must realize that it was done for personal convenience or enjoyment. 

On the other hand, some improvements can satisfy convenience, enjoyment and return part or all the cost.  The latest Remodeling Impact Report done by the National Association of REALTORS® and the National Association of Remodeling Industry  can provide more insight into cost recovery.

Your real estate professional can provide guidance of a more specific nature.

Tamara Towns-Pozorski CRS, ABR, GRI, PSA, SFR Century 21 Benefit Realty , WI (262) 470-2300 Wisconsin Licensed Broker: 56736-90 You will find that this buying or selling adventure isn’t predictable. You will find that things will come up that are tough or unexpected or unpleasant. It may not be seamless or painless. But my job is to help you through each one of those steps, so you can relax and know that your home and your family are in good hands. You are going to ask a lot of questions, and it’s my job to find the answers. You are going to get frustrated at times, and it’s my job to listen and help find resolutions. There may be surprises and delays, but my job is to make this as smooth a transaction as it can be. We can’t predict exactly how this is going to go, but you can be sure that I’ll be there for you every step of the way. A little about me: In 2012, I became a licensed Real Estate agent. I started working with Century 21 Benefit Realty in 2013. I’ve helped my clients buy and sell houses from: $63,500 to $1,200,000 500 sq. ft. to 9,000 sq. ft. 0.07 acres to 106 acres I have a great history of helping my clients buy and sell homes, investment properties, condos, and vacant lots. I have over $95 million in total career sales. My passion is helping people make their real estate dreams a reality! I want to help you make the best decision for YOU by listening to your wants, needs, and dreams! I will utilize my years of professional and personal experience, knowledge, and resources to achieve your goal. Contact Me Visit my Website Send a Referral Subscribe to Newsletter