YOUR REASONS FOR HOME IMPROVEMENT
The first piece of advice is never, ever try and renovate a part of your home, simply for the purpose of selling. You are incurring a huge risk here. The housing market can be volatile, and you never know which amenities are going to pay-off. If you renovate for yourself, you at least know you will get value simply by the enjoyment of the change. Your potential buyer may walk into the improved room, declare they don't like it, and then change it immediately. They won't care if you just sunk $30,000 into it. If you are looking to spruce up your home a little bit, before you sell, just make minor cosmetic changes, like painting. They are fast, inexpensive and there is little risk. If you know that you will be living in a home for some time, but you also know that in the future (perhaps when all of your children move out) you'll be selling it. You should try and balance, which home improvements will pay-off the most, and which ones you would most like to enjoy. For instance, there is little point in renovating the basement, if you never go down there. It's better just to leave it a blank slate for the next homeowner.
The following is a list projecting which home improvement initiatives often produce the best results upon resale value. Naturally these numbers are not rock solid. There are many factors including your local housing market and what kind of improvements you undertake.
- Kitchen Remodel (minor) - 125%
- Basement Remodel - 98%
- Bathroom Addition - 96%
- Kitchen Remodel (major) - 92%
- Bathroom Remodel - 90%
- Exterior Paint - 90%
- Master Bedroom - 86%
So, here you can see that home improvements to kitchens and bathrooms, pay excellent dividends. Not only that but they are often the most enjoyable changes for your everyday living.
HOME IMPROVEMENTS WITH A LOW RETURN
Generally improvement of attics and basements yield a very low return, unless of course you do something radical. Then the risk is very high, but the return could be enormous. For instance, a tranquility tank is not going to appeal to many people, but if you find a buyer that is all about tranquility, you'll make your money back, and more.