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Which Renovations Will Add The Most Value To Your Home? 4 Options To Consider


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December 08, 2022

Home renovation projects were all the rage over the past two years, with rising valuations, low interest rates, and record cash-out refinancing all coming to fore. With the right planning and approach, such renovation projects can substantially enhance the value and longevity of your property, but all too often homeowners focus merely on aesthetics, without giving much thought to functionality and value addition.

When it comes to renovations that will add the most value, there are a few tried and tested best practices that can fundamentally enhance quality of living, as well as the resale value of a property. In this article, we cover some ideal options for homeowners to get the most bang for their buck.

Consider Taking Out A Home Loan To Help With Your Renovations

For additions to your existing property, it makes great sense to take out a home loan, and unlock its unencumbered valuation. Getting approved for such loans is quite simple and straightforward, with plenty of options such as the home equity loan, or home equity lines of credit (HELOC), and even the FHA home renovation loan by the Federal Housing Administration available for homeowners.

Instead of spending your own hard earned savings on renovation projects, it makes great sense to leverage on borrowed money, as real estate always generates better returns relative to interest rates.

1. Create An Addition

Investing in a project that results in an increase in your total built up area is a sure shot way of increasing your home values. This can include an additional bedroom, a guest room, a patio, or anything else that increases the overall floor area while adding functional value to your living space.

While this seems quite straightforward, such projects can go just as wrong, ruining livability and aesthetics without due planning and consideration.

2. Bathroom & Kitchen Remodelling

Beyond additions to the floor space, the next most ideal undertaking that stands to add the most value is kitchen or bathroom remodeling. These are two essential cornerstones of a household that have the tendency to deteriorate fairly quickly.

Investing on their renovations doesn't just improve your quality of life, it can help mix leakages, or issues that could hamper the longevity of your entire house. A good looking bathroom or kitchen stands to substantially enhance the resale value of a house.

3. Develop Your Basement

In most American homes, the basement is a waste of space, used to store things people don't need or ever use, essentially turning into a host for bugs, bacteria, and diseases over time.

With the right approach to your basement, you can increase the overall usable square footage of your house, enhancing its appeal, and valuation to potential buyers.

According to Renovation Magazine, investing in basement renovation can result in a 75% return on investment, within a relatively short period of time. This essentially makes it a storehouse of value that is just waiting to be unlocked.

4. Amplify Outdoor Spaces

While aesthetics add little value in-terms of livability or quality of life, there are certain external and outdoor features that undoubtedly enhance resale values and saleability. This can be something as simple as enhancements to your backyard, porch, or patio, and even something lavish as a personal swimming pool.

Keep in mind, however, that any such decision comes with its own share of baggage. A swimming pool is often very expensive to maintain, and certain types of shrubbery in your front or back yard can give rise to certain types of pest and rodent infestations that you will have to deal with going forward.

Final Words

There is no shortage of funding options for home renovations, but it takes considerable planning and analysis to choose the one that perfectly aligns with your home and its overall value proposition.


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About the author

Sari Cada

Sari is a freelance content writer. She is interested in a wide range of fields, from education to project management, business, finance, and engineering

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