When you decide to make changes to your home, you need to keep in mind the return on investment. Is it worth it in the long run to start a project that won’t add value to your home? According to the 2015 Remodeling Impact Report from the National Association of Realtors®, Americans have spent $326 billion on remodeling and redesigning their homes this year. That’s a pretty penny! The goal is the think about the future and consider your resale. Do what you can now to get the most bang for your buck if you’re looking to renovate.
1. Flooring
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Flooring is a big deal. Whether it’s carpet, linoleum, tile, or hardwood, buyers will notice and worry if they need to replace it. Refinishing your hardwood floors has a 100% return on investment, so if you have the means this is a must! If you’re replacing carpets with new wood floors you’ll still get 91% which is a solid return.
2. Kitchen Upgrade
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They say that the way to the heart is through the stomach, so that makes the kitchen the heart of the home. This is usually the first place people consider for a remodel and it can be a great selling point. Whether you upgrade an existing kitchen (which will cost your around $30,000) or decide to do a complete renovation (costing around $60,000), you’ll get a 67% return.
3. Bathroom Upgrade or Addition
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Depending on how many bathrooms in your home, you might want to renovate or even add a new one. If you decide to do a reno which will cost you about $26,000, you’ll get a 58% return, while adding a whole new bathroom which costs around $50,000 will give you 52% of value returned from the project.
4. Living Space Additions
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Extra space like an attic of basement can always be converted to something more livable. If you want to change your basement space to a living area, the estimated cost is $36,000, but with a resale $25,000 of that will be recovered. A 69% rate of return is great and you’ll have even more space in your home to relax! An attic will cost around $65,000 and you’ll still get 61%.
5. Insulation
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For those cold months, insulation is a must for keeping your home warm. If you want to make a more practical change without breaking the bank, this is a good bet. It’ll cost $2,100 and you’ll get 95% of recovered value!