When considering a home renovation to improve the resale value of your home, keep in mind what has the highest return on investment (ROI). Whether you are a first time home buyer just starting your home search or are thinking of upgrading to a new home, it’s helpful to know what home improvements you can make that are also the best investments.
Bathroom and kitchen renovations seem to still lead the market place with ROI. Painting either the exterior and interior or upgrading the floors will pay for itself in value (and it’s a more affordable investment). Renovating the basement, creating a recreation room, or building a garage to add square footage all offer a high resale value. Installing a fireplace, replacing windows and doors, installing central air and improving the heating and furnace system will all appeal to the energy-conscious buyer and also offer better pay backs at selling.
Working on your landscaping is always recommended but be a minimalist as this is not the area to gain your ROI. Elaborate work which would need frequent maintenance could be detrimental, seen as a hindrance.
Adding a skylight may seem like a good alternative to light your home, but for resale it has the same returns as using energy-efficient bulbs.
Set out a budget – the amount you are willing to invest to get a higher price for your home. Talk to a professional who is able to assist with improving your home as well as your real estate agent. Your agent should be able to tell you exactly what your house needs to get the highest ROI.