If you’re a homeowner or renovation contractor, it’s important to know whether renovations will increase or decrease your property value.
Home Renovation can be expensive and time-consuming, but they can also bring great benefits to your home.
In this article, we’ll discuss what makes a good home renovation and why it matters so much for your house’s value.
Houses as an Investment
As a real estate investor, you’ve probably heard the phrase “investment” used in reference to your home.
However, there’s another meaning that you should be aware of: an investment can also mean something that increases in value over time.
When you renovate a house, it may increase its value—or not. It all depends on how well your renovations work for both what the project was meant for and where it is located in relation to other homes nearby.
Renovating a Kitchen
A kitchen renovation is one of the most popular home improvement projects.
They’re also one of the most expensive.
But if you can find a way to make your kitchen more energy efficient and environmentally friendly, as well as more accessible for people with disabilities or limited mobility, then it’s definitely worth doing.
Renovating a Bathroom
Bathroom renovations are the most expensive home renovations, with an average cost of $6,000 per square foot.
However, when you consider that your bathroom has a direct impact on how much value you can add to your home by way of upgrades and additions, it becomes clear why they’re worth investing in.
One reason is that they can increase the value of your property by up to 50%.
The average homeowner spends between $5-$10 million on their homes each year; this means that if you spent $100k on renovating just one room (the bathroom).
Then every year thereafter when people come into this freshly-renovated space, they’ll automatically think twice about buying from someone else who hasn’t invested in theirs yet.
Even though there might not be anything else physically wrong with their house other than some paint work needed here or there!
Which Renovation Is Worth the Most?
The most cost-effective renovation is to renovate your kitchen, followed by renovating a bathroom. But if you’re looking for the most bang for your buck, combining two areas together is by far the best option.
While this may seem counterintuitive at first glance, it makes sense when you consider how much more expensive each area will be when compared with just one room in your home (or apartment).
If you were only going to put in new cabinets and paint them white instead of red for example then that would likely only cost $20k max per unit; whereas if I was doing all new finishes on my entire house including walls, floors etc., then we’re talking upwards of $50k+ per unit!
How Do Homes with Quality Renovations Add to the Property Value?
In the world of real estate, there are many ways to increase the value of your home. From adding new features and improving curb appeal to painting or landscaping, there are plenty of ways you can make improvements that will be sure to help increase the amount you sell for.
However, one thing that may not be so obvious is how home renovations can actually add value to your property—and if done correctly, they could even be an investment in itself!
When it comes down to it: whether or not something is worth doing depends largely on what kind of return you expect from each project.
The most valuable renovations are those which increase livability (such as adding more space), while less desirable ones might only have an aesthetic impact on how people perceive their homes when looking at them from afar.
Now that you know the value of renovating your home, it’s time to get started! You can find a list of contractors in your area who can help with your renovation project by visiting our website. We have many other tips on how to increase property values in this article as well.