Every part of your house has a different value, according to the real estate market. If you are thinking about renovating, you should start to research the ROI (return on investment) for different parts of your home. For instance, will a new bathroom or a new kitchen have a bigger impact on the value of your home? This article is going to cover the best ROI on house renovations.
If you’re a first-time home buyer, then you should use this article to help you assess potential properties. Buying a house is considered one of the most important financial decisions in an individual’s life. It’s not just about investing money, but also your time and your effort! Maybe you want to buy a house with a lesser quality kitchen, and plan to renovate it yourself. Remember that a simple paint job and high quality furniture can make any home comfortable.
Or if you are already a homeowner, you can make plans to increase the value of your home!
Why should I renovate?
A house is a reflection of the people who live there. If you move into a new house, it’s unlikely that it will perfectly meet your needs or reflect your style. And on the other hand, if you have been living in the same house for many years, then your taste has probably changed!
It takes a lot of effort to convert a house into a home, and that’s the ultimate reason behind renovations and home makeovers. You’ll feel more at home while you live there. And if you ever decide to sell, a renovation will increase your home’s resale value.
What factors affect a house’s value?
It’s a little complicated. Some elements are fairly static and can be predicted well by the market and real estate agents.
- # of rooms
- Size of the rooms
- # of bathrooms
- Additional features: garage, patio, extra storage space
Other elements are a bit subjective. We’re talking about interiors.
- Condition of the walls
- Materials used
How do I know which interior projects will give me the best ROI?
A better interior is more valuable than a shabby interior! But how do you know which give the best ROI for house renovations? Should you just paint the walls white and call it good?
One thing you can do is hire an interior designer.
Lots of people resist doing this because they’re afraid of wasting money on something they could do themselves. Unfortunately, these people are shooting themselves in the foot. There are a lot of things that interior designers know that you probably don’t.
Not only do interior designers have technical knowledge, but they also have connections to suppliers and manufacturers that can actually save you money in the long-run. Plus, they are experienced project managers. They can assist you in negotiations and bidding. They can help vet and manage contractors, and ensure your renovation project is finished within the stipulated timeframe.
Some projects are too complicated to DIY. Hiring a professional can save you from making costly mistakes!
How do I plan the renovation budget?
Ask your friends and neighbors who have done similar remodels. They can give you insight into local pricing and connect you with trusted business partners and contractors.
Costs depend on which room you are renovating, how big it is, and what quality of finish you’re aiming for.
Average Range for Kitchen Reno: $13,059 – $37,044
- Budget Reno ($10-$15k): sink upgrade, painting kitchen walls, installing tile backsplash, refacing cabinets
- Luxury Reno (+$50k): high-end appliances, hardwood flooring, granite counters, customized cabinets
Average Range for Bathroom Reno: $5,957 – $14,833
- Budget Reno ($10k): new fixtures, new flooring, new paint
- Luxury Reno (+$54k): new shower/bath, expanded layout, fan installation, custom vanity
Average Range for Bedroom Reno: $7,880 – $30,000
- Budget Reno ($15k): new furniture, painting walls, new light fixtures, new trim
- Luxury Reno ($1m): top-end finishes, smart technology, high quality soft furnishings (bedspreads), walk in closet
Average Range for Living Room Reno: $6,700 – 7,900
- Budget Reno ($6k): new couch, new paint, TV console
- Luxury Reno (+$15k): new flooring, new furniture, paint the walls, recessed lighting, console
How does the billing process work?
Talk with your interior designer. Most designers charge fees based on hours. If they are handling the purchase of materials and furnishings, they may ask for a mark-up or percentage. However, some designers prefer a flat fee.
Be clear and upfront with your requirements, and establish good communication with your designer. If you are planning to DIY your renovation, you might just want to hire a designer for an hourly-based consultation fee.
Keep in mind that interior designers have access to trade discounts that can save you a lot of money. Almost all major home decor websites and hardware stores have trade programs. By working with an interior designer, you can save money on materials and furniture that justify the price of hiring an interior designer.
So what interior areas offer the best ROI for house renovations?
If you’re only looking at interiors, then a minor kitchen or bathroom remodel will offer you the best ROI for house renovations.
If you are willing to consider exterior renovations, then you should consider a roof replacement, siding replacement, entryway revamping, or patio / deck additions.
I’m still not ready for a reno yet. What can I do right now to make my house feel nicer?
Good for you! It’s never smart to rush into a renovation.
If you are dreaming of a reno but you’re not ready yet, there is one perfect way to update your space: new furniture.
Check out some design-and-furnish companies!
These companies take your floor plan and create a custom design just for you. You get all the fun of doing a DIY design, but you also get the added bonus of working with a professional! They ensure a cohesive, stylish design and they measure everything to your layout.
One of these companies, Furnishr, will even order, ship, and assemble the items for you. Talk about one-stop-shop!
It’s free to request a custom room design, so what are you waiting for? The home of your dreams could be only two weeks away!