Which Home Renovations Have a Great ROI?

People have different motives for renovating their homes, but the common concern among everyone is worthwhile spending. When renovating your house, you will want to know that you are adding value. Different investments add different values; some may not add any value to your property.

The real estate industry is one where buyers want beauty inside and out. To accomplish this, investors look for properties that are well done structurally, not just aesthetically. You will need to invest in renovations that are highly valued.

What is the ROI of a Renovation?

Several factors influence the ROI a renovation creates, including:
 

• Timing

• Location

• Type of project

• Real estate market

It is near impossible for your renovations to give you a 100 percent ROI. Despite the concepts sold on fix-up shows, it is advisable to manage the expectations of renovations. Most experts agree on the average figure being 70 percent ROI for renovations. 

Financial experts will usually not recommend investing in home renovations to grow wealth. They will likely advise you to consider other places to invest in and make more. 

However, it is still an excellent move to renovate your property to help raise its value. The property will grow in value as time passes, and you may get more than your original investment.

So, what renovations have the best ROI?

Bathroom and Kitchen Remodeling

These two are the most utilized rooms in any house, meaning more value is placed on them. Investing in renovations for these rooms will result in higher ROI and better quality of life.

Kitchen and bathroom renovations can become very expensive. However, they will yield as much as you invest. In some markets where real estate is doing good, you may actually get 100 percent ROI from these renovations.

Kitchens and bathrooms are designed for utility and function. They have many appliances and utilities that are necessary for every home. This feature makes them ideal because, despite time, any tenant or buyer will need and value these rooms.

Redo the Hardwood Floors

Another high ROI renovation is refinishing the hardwood floors. You can do this by resurfacing them or entirely replacing them. Working on them will yield an average ROI of 70 to 80 percent. The floor is an opportunity to make a great first impression; with the correct stains, the floor can look and feel very attractive. 

Finish the Basement

A study by NAHB states that many high-income buyers will place more value in a house with a finished basement. The average ROI for finishing a basement is 70 percent or the value of the property increases by $700 for every $1000. 

The features in a basement can cause the property to rise to a different price range. Basements can have drywall, paint, and suitable flooring to create more heated square footage. 

Exteriors

Another significant renovation is that of the exterior features. The ROI from these can reach up to 80 percent. The most common features you can improve are your landscape, windows, siding, painting, and roofing. All these enhance curb appeal, which is important because it is the first thing buyers see when they look at a property.

If you have any questions on home renovations, contact Pacific Real Estate Group in Rancho Cucamonga, California by calling 888-452-0974 today.