METCALF MOVING BLOG

SEARCH METCALF

March 28, 2023

Renovations That Add Value to Your Home

Although the primary purpose of buying a house is to have a place to live, one of the other advantages is that you can build equity over time. Then, you can leverage that equity to buy a new property or pass that wealth on to your kids.

Being a homeowner is a lot of responsibility, but upgrades and renovations are part of the deal. Fortunately, the more work you put into the home, the more valuable it will be. That said, not all renovations are moneymakers, so we’ve compiled the top ones that can give you a decent return on your investment when you decide to relocate.

Add a Bedroom

As a general rule, home prices are based on factors like the square footage, the number of bedrooms and bathrooms, and the age of the home. So, if you can increase the usable square feet and add a bedroom, you can immediately increase the equity.

According to OpenDoor, adding a new room can increase the home price by about five percent. If your house is worth $250,000, adding a bedroom can increase the asking price by about $12,500. While you might spend more on the addition, it’s worth it in the long run if median home prices increase (which they often do).

Enhance Your Loft

If you have a loft, consider converting it into a bedroom without extending your home. Lofts can be valuable spaces, but many people end up underusing them. If you have a loft, consider how to use this space for bedroom purposes.

Ensure your loft has enough floor space to accommodate a bed and other furniture; its height is at least 7 feet before starting any work.

A closet is necessary for many rooms, as they can only be considered bedrooms with them.

Upgrade Your Kitchen

The kitchen is the heart of the home because everyone gathers there to break bread and enjoy meals. Today, kitchens must be functional and beautiful, with backsplashes, accents, tiles, granite countertops, and more. It’s time to upgrade your kitchen if it’s stuck in the last millennium.

The great thing about kitchen renovations is that you can do specific sections individually. You can also DIY elements like new cabinet doors, updated appliances, and even backsplash tiles (if you know what you’re doing). So while the whole kitchen may take a long time to complete, you can save money by completing projects incrementally.

With a kitchen renovation, consider how you or other people will use it in the future. Avoid trendy elements since they may go out of style in a few years. Instead, focus on high-quality, practical features that will stand the test of time.

Add or Upgrade Your Bathroom

According to the 2019 Remodeling Impact Report by the National Association of Realtors (NAR), bathroom renovation is the most popular home improvement. As with adding a bedroom, a new bathroom can do wonders to build equity in your house. Either you can add a new bathroom or upgrade a current one.

Bathrooms can be tricky because you have to consider plumbing and waterproofing. However, even something as simple as new fixtures and sinks can transform the space and make it more appealing to prospective buyers. Oddly enough, a new bathroom can increase the home price by 5.7 percent, making it more valuable than a bedroom addition.

Enhance Your Outdoor Living Space

If you have a spacious backyard, it is time to renovate it to accommodate different needs. For example, installing a backyard barbecue or fire pit can enhance the space, as can walkways and other natural elements.

Landscaping can be expensive, but if you blend natural beauty with practical components, new buyers will appreciate its usability. They will also be more willing to accept a higher asking price. Before you start, though, consider how you want to use it. Are you hoping to entertain guests, or do you want space for kids to play? Remember, you’ll have to live with it first.