Real estate is a booming business, and every investor aims to get the maximum return on the properties they’ve invested in. By renovating a few areas here and there, you can quickly recover the cost and, potentially, earn a massive profit over it, too.
To do that, though, you need to look at your property from a home buyer’s point of view. While it may be tempting to invest in high-end renovations, it’s probably not a good idea if your target market wouldn’t be willing to spend on it.
Moreover, there are many people who purchase property for resale purposes, so, in such cases, you need to think of the situation from the investor’s perspective. Investors looking to buy property for resale means you can’t get away with cheap renovations since other investors will notice such flaws in a second.
So, keeping this in mind, what reservations can you go for that will add value to your property? Here are nine projects to look into:
Add a Garage
Adding a garage should be absolutely necessary if your home already doesn’t have one. Most homebuyers usually own one car at least and, even if they don’t, a garage is often an excellent area to store up miscellaneous tools for the house, such as a lawnmower.
When you’re considering adding a garage, you should keep in mind different car sizes, from small to big ones, so the garage should accommodate all kinds. Garage extension construction costs vary according to the size and material that is used. Usually, a brick built garage is cheaper than a concrete one.
Add a Bathroom
It’s no surprise that bathrooms play a huge role in how much a home costs. If there’s a significant disparity between the number of bedrooms and bathrooms in your property, then adding an extra bathroom will significantly affect the value of your home.
If your budget is constrained, you should consider adding a half bathroom. Additionally, if you’re considering renovating the bathroom, then do a full-scale one that replaces rusty and old fixtures too.
Finish a Basement
You’d be surprised how many investors overlook basements as a potential cash cow. Thus, many basements are dull, unused, and empty spaces that people rarely go to.
The smart thing to do would be to utilize the space and convert it into something better, such as an entertainment area. If you live in a flood area, then you should also consider installing an automatic sump pump and use mold-proof ceramic tiles instead of carpeting.
Replace damaged or old windows
Replacing old or damaged windows is an excellent idea, not only due to aesthetic reasons but because they can let through cold air or heat, too. Additionally, if you add energy star eligible skylights and windows, you may be eligible for a tax credit, too.
Change an attic into a bedroom
Just like basements, attics are also empty rooms that many people often overlook. Instead of letting this space go to waste, you should utilize this area and consider converting it into another bedroom.
Using up your attic’s space is a cost-effective way to add another bedroom, which is great to appeal to families that have children.
Do a Kitchen Remodel
Kitchens should definitely be revamped. However, just like bathrooms, remember not to go too overboard with the remodel since your home buyers might not be interested in a super-fancy kitchen. Hence, unless you’re incredibly interested in cooking and are planning on spending your entire day in the kitchen, you should probably not recreate a state-of-the-art kitchen.
Add New Siding
There are many sidings you can explore that’ll add more value to your home. Go for a siding that adds aesthetic value while also providing other benefits. There are plenty of sidings that look like wood. Additionally, aluminum siding eliminates the need for painting repeatedly and has insulation properties too.
Add a Deck
Many people love picturing themselves on a deck barbecuing hot dogs for their friends and enjoying a drink or two. However, decks may, sometimes, not be practical, so you should explore your property tax provisions.
Some neighborhoods may make you pay up extra property taxes for the deck and offset the investment you’ve made. Hence, it would help if you explored this before adding a deck.
Add a Second Story
Adding a second story is, by no means, a smooth renovation. You need to do your homework by hiring a highly recommended contractor and checking building codes. Additionally, you should also check zoning laws that might be a hindrance. Furthermore, keep in mind that getting a building permit may also increase your property taxes.
Lastly, do keep in mind the rest of the neighborhood, too. You shouldn’t add a second story if it doesn’t blend well with the surrounding area.
While no amount of renovations can determine how much, or even whether, you’ll earn a profit on your property, it does give you higher chances of doing so. Before you decide to go for any of these projects, it’s imperative to conduct considerable research and find a contractor who’s highly recommended. There are many horror stories related to contractors who do unprofessional work and take a long time to finish the project. Hence, the best way forward is to ask for recommendations from people you know and read reviews on the internet.
Have you used any of these suggestions to add value to your home? What was your experience like? Let us know in the comments below!