As a homeowner, it's natural to want to upgrade your living space and add value to your property. But not all home improvements are created equal. Some add value, while others are more of a personal preference that may not have any significant effect on your property's worth.
So, what home improvements should you consider if you're looking to add value to your property? Let's take a look at the recommendations from various professional groups and publications.
The National Association of Realtors (NAR) suggests that homeowners should focus on improving their home's curb appeal, kitchen, and bathrooms. These areas tend to have the highest return on investment (ROI) when it comes to home improvements. The NAR also recommends that homeowners consider adding additional square footage to their homes through room additions or converting unused space into a livable area.
Home builder associations in Virginia advise homeowners to pay attention to the quality of the work and materials used in any home improvement project. Cheap materials and shoddy workmanship can actually decrease your home's value, so it's essential to invest in high-quality materials and experienced professionals for any home improvement project.
Interior design firms suggest that homeowners should update their homes with modern, energy-efficient fixtures and appliances. These updates not only add value to your property but can also save you money on utility bills.
So, how do you know which home improvements to pursue and which to avoid? Consider working with a CSG Real Estate Advisor. These advisors can help you make informed decisions about which home improvements will provide the best ROI for your specific property.
Top 5 Improvements that Increase Home Value:
- Kitchen remodel: Upgrade your appliances, cabinets, and countertops for a fresh, modern look that will appeal to potential buyers.
- Bathroom remodel: Invest in high-quality fixtures, such as a new shower or bathtub, to create a luxurious spa-like experience.
- Landscaping: Improving your home's curb appeal can increase its value by up to 17%. Planting flowers, trimming trees, and adding a fresh coat of paint can make a big difference.
- Room additions: Adding additional living space, such as a new bedroom or family room, can significantly increase your home's value.
- Energy-efficient upgrades: Installing new windows, insulation, or a smart thermostat can reduce your energy bills and increase your home's value.
However, it's important to note that not all home improvements will provide a high ROI. Our advisors at CSG Real Estate recommend avoiding the following home improvements:
Top 5 Improvements with Low Return on Investment:
- Swimming pools: The cost of installation, maintenance, and insurance typically outweighs the added value to your home.
- Luxury finishes: While high-end finishes may be appealing, they often don't provide a significant ROI.
- Wall-to-wall carpeting: Many buyers prefer hardwood floors, so installing carpet may not provide a high ROI.
- Trendy design elements: Bold, trendy design elements may not appeal to all buyers and can actually decrease your home's value.
- DIY projects: Unless you have experience in home improvement, it's often best to hire a professional. Poor-quality work can decrease your home's value.