Moderate to High-Cost Tips
There are updates you can make to a property at an average to high cost depending on the extent of the renovation done and the materials chosen. These updates have the potential to add significant value to your property:
You can give a boring room some character by adding a chair or crown molding to it.
This is a valuable addition. It improves the aesthetics of the home, and also can reduces noise inside the home, help lower heating bills and cooling bills and increase natural light inside the home. French doors that lead out to the backyard add elegance, open up space, and allow more light to enter the property. Skylights can also help brighten up spaces that may be lacking windows or natural light. Properly positioning windows and doors can also help highlight a beautiful view that your property may have or minimize one that is not so desirable, such as a brick wall or a view right into your neighbor’s home.
Updating carpet or adding hardwood or tile adds value to a property.
There are many ways to reduce noise such as adding insulation, installing double pane windows and doors, installing carpets and rugs to minimize footsteps and placing plants to absorb noise further.
This includes changing a portion of the room, but not an entire gut renovation. It could be changing the flooring or changing counter tops. In the bathroom, you could switch out a toilet, sink or bathtub. In a kitchen, it could include buying new appliances.
This would be a complete overhaul of the room. It can involve adding new cabinets, new counter tops, new flooring, new lighting fixtures, new appliances, new sinks, new faucets, new cabinet handles, new tub, new shower, a new toilet or even changing the layout of the room.
There are many options for home siding, and the best type will often depend on the climate and area where your property is located. It is an update that will improve the aesthetic look of your property and can help lower your utility bills.
For example, this could be taking down a wall between a kitchen and living room. It could be rearranging a kitchen to create more usable space. It could be adding a bathroom to the master bedroom to create a suite. It could also be swapping the location of two rooms, such as an office and a dining room to create a better flow in the home.
This does not only mean adding an addition to the property. It could also mean finishing an unfinished attic or a basement to add more living space to the property. It could also mean transforming an attached garage into the additional living space.
Completely redoing a property by ripping it down to its studs and building it back up with a more modern design and materials can increase the value of a property, as long as you can sell the property for more than what you owe, along with renovation and holding costs.
While you want to improve your property and increase its value, you also want to be cautious so that you do not over-improve your property. You don’t want to spend an amount of money on a renovation where you will not see a return on your investment. For example, putting high-end Viking appliances in a home in a middle-class neighborhood would be an over-improvement.
Before you renovate, do some research on your area to find out how much the property will be worth after the renovations, also known as the After-Repair-Value or ARV. Once you accurately gauge this new value, you can deduct the price you paid for the home. What you are left with is the maximum price you should spend for the renovation. Also take into account soft costs such as financing charges, closing costs, and holding costs if the property sits vacant while the renovations occur.