Four Ways to Add Value to a Home

 

You may want to start increasing the value of your home, but not know where to begin.

 

We're here for you!

 

But the answer might not exactly be what you think.

 

All of the points that we are about to talk about below can add value to a home, but only if they are done for under-market value.

 

If you pay market value for any of the renovations or additions below you will unfortunately not make money.

 

I want you to keep that in mind when reading this.

 

We don't believe in renovating to increase value unless you have comparable homes in your neighborhood that sold with these changes made.

 

Now these aren't going to apply to every home, but see if there is anything that you can take away from your home.

 

There's nothing worse than constantly waiting around when you are trying to get in the bathroom! 

 

Everyone has experienced this in their life.

 

Adding a bathroom can be a wise investment that can increase a property's value and appeal to potential buyers. But at the same time, the math doesn't always add up and this is why I warned you that you need to be very cautious with some of these projects.

 

According to the National Association of Home Builders, adding a half-bathroom can provide an average return of 52.6% on investment, while adding a full bathroom can provide an average return of 58.3%.

 

That's kind of crazy when you think about it!

 

Why is that?

 

Because most homeowners are overspending when they do this project or they aren't checking to see how much comparable homes are worth with these extra bathrooms.

 

Make sure you do your homework first.

 

Have you ever tried cooking in a kitchen that is just too small?

 

I honestly don't think there is anything worse.

 

And I have seen a small, awkward kitchen layout kill deals before.

 

Expanding the kitchen can increase the functionality of the space, allowing for more storage, counter space, and room for appliances, but it doesn't always lead to an increase in value, especially when the homeowner overspends.

 

Just like with the bathroom don't over-renovate here and spend too much money. 

 

If you are doing this for ROI purposes then you want to make sure you aren't putting in money that you aren't going to get back plus more.

 

Now if you are creating your dream kitchen that's a different story. 

 

Spend as much as you want!

 

This is probably the one example that almost always adds immediate value to the home based on the numbers.

 

Everyone wants a bigger home!

 

That's something that most likely is never going to change.

 

But at the same time, buyers have to pay for it.

 

Think of all the possibilities here!

 

This makes it a lot easier to add a bedroom.

 

Or a bathroom.

 

There is just so much potential.

 

It can also make the existing living spaces more spacious and comfortable, which can increase the value of the property in itself.

 

Homes with more square footage generally sell for higher prices than similar homes with less square footage. 

 

That's just a fact!

 

If you can take advantage of this you will add so much value when eventually selling the home.

 

Now adding a bedroom is definitely going to be profitable if you are able to add square footage to the home.

 

It may not be as profitable if you are reconfiguring the home and not adding square footage.

 

I also want you to be careful if you have a four-bedroom+ home.

 

If you are in that category adding bedrooms doesn't have the same ROI effect as it would if you have three bedrooms or less so just keep that in mind.

 

Basement, so they almost always go with the finished basement even if they have to pay more for it.

 

Remember we want you to really do your homework on comparable homes in your home before doing any renovations or additions, because like I said before I never recommend doing work on your home and just hoping for the best.

 

There should be two outcomes that potentially take place after you invest money back into the home.

 

You make money off the renovations or additions when selling.

 

Or you enjoy the renovation or addition while you are still living there. 

 

And of course, we are always here to help if you have a specific question about your home.