When making the decision to renovate your home, a major factor to consider is not only your current budget, but also your return on investment, or ROI. Many home renovations can increase the value of your house, allowing you to profit when it comes time to sell. However, there are also certain renovations that are less likely to pay off, depending upon other factors — such as location and the state of the market. By contacting RH Homes today, you can learn more about home renovation options, and start a project that will help you make a profit.
Which Projects Pay Off
There are three main areas of your home that are likely to provide the best ROI: the bathroom, the kitchen, and bedrooms. By remodeling your bathroom, you’re likely to have an ROI of 84.9%. Adding a bathroom to your home can provide significant ROI, depending on how many bathrooms you already have, and how much you choose to spend. If you have 2 bathrooms — or only 1 — an additional bathroom will be much more effective than if you already have 3 or more bathrooms.
For the kitchen, a remodel might have an ROI between 80.4% and 85.3%, depending on whether the remodel is major or minor. This figure also depends upon your location. In many areas, buyers consider having an upgraded kitchen to be extremely important and even a standard feature of a new home. This could bring your ROI up even higher, potentially over 100%.
Finally, adding a bedroom is another great renovation with high ROI. Remodeling your attic into a bedroom is one of the most cost effective bedroom renovations possible, and you can often add another bathroom as well. This project could have an ROI of 79.9%.
Other Factors to Consider
In addition to full-room remodels and additions, even minor renovations to your home can lead to a high ROI. For any renovation project, you should consider other factors that majorly contribute to your ROI. First of all, your neighborhood makes a huge difference in potential ROI changes. If you perform costly renovations in an area where that is not the standard, you may have difficulty finding buyers who are willing to pay a higher price for updated features.
Your region will also have an effect; for example, labor often costs less in the South and more in the Northeast. Certain features are also location specific, such as decks and fireplaces. In addition, the real estate market varies not only by region but also by year. When considering your budget and desired ROI, take into account potential changes to the market.
Contact RH Homes Today
If you are considering a home renovation, contact RH Homes today. We will provide you with a free consultation to help you get started on any project. Our company is experienced in home renovations on all rooms of the house. RH Homes is happy to discuss your options for remodeling and renovations in terms of potential costs and ROI for your area.