Can You Recover Your Home Improvement Investment?

Household renovations help you achieve your dream home without the hassle of moving, but will they pay off when you ultimately decide to sell? We asked a team of professionals to share their thoughts and experiences on the topic. Here’s what they had to say:
Russell Volk

Russell Volk

Russell Volk is a real estate agent with RE/MAX Elite, proudly serving the entire Bucks County, PA region.
I was working with a couple who wanted to sell their home. I estimated the value of the home to be around $700,000. Location was phenomenal! From the back of the house, you had long-distance views and a stunning shot of a mountain. They had a small concrete patio in the back. I recommended they invest in building a deck where these views could be enjoyed.

My clients agreed to this idea and built a gorgeous, 2-tiered deck, which ended up costing around $100,000. The deck turned out so well, that they sold the house for $875,000 because their buyers absolutely loved the idea of watching the sunset behind the mountain and seeing it all happen from a beautiful, comfortable new deck.

An appraiser will add about 30% of what you paid for the improvement to your home’s value. Upgrades help with buyer emotion and appeal. You may find a buyer sooner due to the upgrades.
Benjamin Ross

Benjamin Ross

Benjamin Ross is Realtor, Landlord, and Investment Specialist. He is the founder of myactiveagent.com with a mission to offer an excellent representation of his client.

Matthias Alleckna

Matthias Alleckna is an energy expert at EnergyRates.ca, a leading energy rate comparison website. They provide users with unbiased third-party reviews of electricity and natural gas retailers so they can choose the best options.
Home improvements are often seen as expenditures, but only if you look at short-term savings. It’s more common than you think to get your money back, or at least part of it, on your home upgrades.

Most home updates, however, will take some time to bring your money back. Some of the most cost-effective home improvements are energy-efficient investments. These changes bring your money back by lowering your monthly heating, gas, electricity and water costs. From cheap insulation kits to major projects, there is a wide range of services and devices for you to try, meaning that your initial costs don’t need to be expensive, and you can still get a great deal of your money back.

These types of home upgrades can even be seen as short-term investments. There are many testimonials from families that purchased energy-saving devices, such as smart thermostats, low-flow faucets or LED bulbs, and have seen their utility bills decrease by around 50% in the following months.

Home improvements can bring your money back in less obvious ways as well. The more upgraded your home is, the higher your property value tends to be. In other words, your house will be worth much more if you let buyers know about the investments you’ve made to make it more comfortable and affordable. When it comes to energy efficiency, for example, you could increase your property value around 20% for having an efficient property.

On the other hand, you can reduce your property value if you insist on selling an energy-inefficient home. According to a recent survey in the United Kingdom, most homebuyers would try to renegotiate the price of a home if they found out it was an inefficient home. Some of them would even give up on the purchase, as they know inefficient homes waste plenty of money on issues that could be avoided.

Studies show the top three home improvement projects for yielding investment returns are garage door replacement, manufactured stone veneer and minor kitchen remodel.

These three have value retention in common, as they add perceived value to the home with an aesthetic upgrade. They also boost the enjoyment and functionality of everyday activities around the home.

Ramya Menon

Ramya Menon has extensive experience in creating content for digital consumption.

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