There are certain home improvement projects that can really launch your home into a higher bracket. Before you call a contractor or pick up that sledge hammer for some DIY demo you may want to consider the Return on Investment (ROI) for your time and efforts.
The most popular and most expensive remodels/ updates are kitchens and bathrooms. The average kitchen or bath remodel can fetch you 75%-90% of your initial investment. Usually you can get a great return on appliance upgrades.
Other good options for remodeling and boosting equity are landscaping, adding a room, adding a bedroom, and adding a garage.
If funds are tight, spend your money on rooms that people value and use the most – like kitchens and baths – instead of adding more niche items like wine cellars, game rooms, and home theatres. Spaces like this are much more personal and not all buyers will find value in them.
Of course, you should do remodeling that makes sense for you. Ultimately, you will be living in the home at least for a while and should enjoy the fruits of your labor.
Finally, take care to do improvements that can be supported by your neighborhood. If you go overboard it can slow down the selling process. For example, putting a high end chef’s kitchen in a starter home will drive up your price to the point that first time home buyers may not be able to afford it and the buyers that could afford it may not consider looking in a starter home neighborhood.
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