Home Improvement Projects that Add Value to Your Home
Spring is a traditional season for tidying up around
the house. It also is a time when many homeowners undertake home improvement
projects – opening or tapping home improvement loans in the process.
Indeed,
home improvements are the second most popular use for home equity borrowing,
and it’s easy to understand why. Home improvements can actually increase
the fair market value of your home.
But don’t assume every “improvement”
will increase your home’s value, and remember that the best projects
to suit your purpose depend on whether you’re planning to sell the
house or are staying put and trying to improve living conditions for
your family. These may result in opposite approaches.
If you’re going
to stay in the house for a few years, you can follow your bliss and
undertake the projects that are most important to you and your family.
However, if you’re sprucing up the place to sell it, you need to think
in terms of projects that potential buyers will value most – and that
will provide the biggest payback in relation to cost.
Before we list
the top-10 such projects, here are two to avoid: swimming pools and
extensive landscaping. Swimming pools may even lower your property
value because of the expensive upkeep required, along with liability
issues and other concerns. And big landscaping projects, while they
may turn a few heads, seldom recoup at resale the dollars you spend
on them.
Top Value-Adding Projects*
1
Painting Painting (interior or exterior), as long as it is done well
and with tasteful, neutral colors, is one of the only home improvements
that can actual turn a profit for you.
Value-add: up
to 300%
2
Bathroom Addition Especially if your home has only one bathroom, or does not have
an average number in relation to your neighborhood, adding a
new bathroom is another worthy home improvement project. Value-add:
80 – 130%
3
Kitchen Remodeling Kitchens and bathrooms are among the most-scrutinized rooms
by prospective buyers, who often do not want to face the disruption
of living through the remodeling themselves. If you do a nice
upgrade that fits in with the style and value of your home, you
should reap the reward.
Value-add: 68 – 120%
4
Bathroom Remodeling The same can be said for modernizing a hopelessly dated (think:
dark pink and aqua) bathroom with attractive fixtures, faucets,
new tile and sink, etc. White is a timeless choice.
Value-add:
65 – 120%
5
Deck Addition/Improvement Adding an attractive deck, or remodeling your old one, is usually
a safe bet to bump up your home’s value.
Value-add: 65
– 90%
6
Window/Door Replacement Old-looking, energy-inefficient windows and doors can sometimes
be a stumbling block to resale. Traditional-style, energy-efficient
replacements are a good idea. Value-add: 50 – 90%
7
Finishing Unfinished Space Without having to build the structure, you can add square footage
by building out a basement, bonus room or attic. More space typically
translates to a higher sales price. Value-add: 50 – 90%
8
Adding New Space Whether it’s a new sunroom, bedroom, family room or even a garage,
the added cost of building the structure and interior space are
usually well worth it.
Value-add: 50 – 83%
9
Home Office Remodeling As more and more people work from home at least on occasion,
another popular remodeling choice is building a new home office.
Just make sure to include adequate networking, broadband and
electrical connections. Value-add: 60 – 73%
*As ranked by HGTV according to the percentage of the project’s
cost recovered at resale.
For information about North Atlanta Bank home improvement loans
or home equity lines of credit, please contact one of our financial
professionals.
