Renovations add value to your home. The average upgrade will increase the market price by 75 to 90 percent of the project cost. DIY homeowners have sweat equity and can find some enhancements to be profitable. The fair value can rise by 150 to 300 percent of the cost if the market conditions are ripe.
What is real estate like in your area right now?
In a buyer’s market, homeowners often renovate to entice offers. Real estate prices are not trending upward with momentum. The incentive to invest in bringing the property value up does not exist. In these cases, keep your renovations to a minimum to avoid over-leveraging yourself.
In a seller’s market, the ratio of value increase to renovation cost is much higher. The updates can corner desperate buyers. As supply is already low, the few fancy touches make your property stand out. If you introduce exotic finishes, pressure builds for a bidding war.
Are you a long-term owner? The scenario is completely different if you plan to stay on the property for a long time. Eyeballing a 75 to 90 percent increase in value becomes sensible. You can decide on upgrades that your family will enjoy. These improvements will increase property appeal and selling strength.
Here is where it is important to think outside of the box. Real estate is hot in the US and supply is getting low. Now is the time to plan. Inspect the list below, featuring three DIY-friendly home renovations that can increase the value of your home.
The curb appeal of a home invites or scares away potential offers. Vinyl siding will always exist, but it is no longer in style. If your siding is out of shape, now is the time to update. Choosing a nice stone veneer finish is a terrific idea. This renovation ranks as one of the top value boosters and is a popular trend right now.
This veneer finish is an artificial stone. You make it by mixing cement, aggregates, and iron oxide pigment. Not to worry, it is DIY friendly and three times cheaper than actual stone. You can save approximately two to four dollars per square foot by installing yourself. Dry stack veneer panels are an option, but mortar paste is more common. For residential projects, type N is the standard choice of mortar.
Solar costs are down 82 percent over the past decade. A solar panel can pay itself off in as little as five years. This upgrade is a focal selling point, especially in California. The Golden State ranks four times higher in installed capacity than the second-place state, North Carolina.
Do you live in New York, New Jersey or Massachusetts? These three states rank in the top 10 by installed capacity. These states also receive a substantial amount of snow each winter. Ice dams in gutters and on rooftops are a serious problem that homeowners spend thousands to fight. Solar panels generate enough heat to melt snow off of an angled roof. This feature is a selling point in these snowy states.
Homebuyers gravitate to trendy properties. Vinyl siding with white gutters is a look that is now out of style. Modern gutter systems offer two key selling points: curb appeal and drainage efficiency. Strong metals like aluminum and copper provide the best quality construction. Copper is the better choice in areas with heavy rain or snow, as it is less susceptible to rust.
Invest in gutter guards to get the most out of your drainage system. These guards help to keep leaves and debris out. Gutter covers differ in their materials and fastening mechanism. Go with the same metal as the gutter itself. The smaller openings are only penetrable by dirt that is tiny enough to flush away with rainfall. Installing a leaf guard for gutters costs approximately $2.50 to $4.00 per square foot. DIYing the entire system will save you a lot.
Renovations can impact property value. Profitability is possible with these upgrades if you put in some sweat equity. Your financial accountability is also important. Read on how to budget for home projects to prepare against failure.
Look at the local real estate market to see what’s in style. Aim for a handful of smaller enhancements that transform the look of your home. Find one bigger renovation that sets your place apart from the rest. If the inventory is low, think about what is working in a higher-cost neighborhood. Copy those styles and buyers will gladly pay a premium in your area.
You can fill a country with the number of American home flippers and weekend warriors that are out there. Many homeowners are effective and profitable but most fall short. Be creative in how you bring your vision to life and the financial reward will follow.