There are two reasons a homeowner will remodel their space. The first being that they desire to make a space more functional and inviting to enjoy for the next couple of decades.
This type of remodel is priceless because it is worth it for the use and satisfaction it will bring for years to come.
The other reason being that the homeowner wants to improve the home before selling it.
Which upgrades will actually increase your profit? Read further to find out!
Bathrooms and kitchens can be the remodels that will get you your largest return on investment.
What we mean by can, is that if you are updating to increase your home’s value for selling purposes, you can stand to see some profit.
However, if you are renovating these spaces purely for your own convenience, there is a slight risk you may not recoup those costs when it comes time to sell down the road.
This is because these key areas house amenities and appliances that constantly need to be updated. When sellers look at a potential future home, an outdated kitchen or bathroom is a major turn off.
That is why kitchen and bathroom remodels tend to be looked at as break-even points. You can still recover your costs by the time of sale, but you may not see any profit if the value has depreciated.
If you do not have a huge chunk of change available to contribute towards a full remodel, or if your space only needs a mild update, a surface remodel may be a good option.
Before embarking on a large-scale remodel, let us look at the statistics.
An upscale major kitchen remodel has a return on investment (ROI) of less than 60 percent, while a mid-range minor kitchen redo can return about 80 percent. Bathroom remodels return about 62 percent for upscale renovations, and about 67 percent for mid-level remodels.
With this in mind, it may be more practical to invest in a surface remodel if you plan on updating a space to help sell your home.
Additionally, a full-scale remodel sometimes involves personal design decisions. By taking on a surface remodel, you can keep the space as neutral as possible to appeal to a wide variety of buyers.
Here are the areas you should focus on when undertaking a surface remodel:
- Countertops: These surfaces are one of the most visible parts of a kitchen or bathroom. Do not spend a fortune on expensive materials. You can not be certain that the new homeowner will end up switching it out for something more their taste. Natural stone counters like quartz or granite are usually the most popular option in residential homes.
- Cabinets: Another highly visible material in kitchens and bathrooms is the cabinetry. If your cabinets are still in good structural shape, consider simply painting them or refacing them.
- Fixtures and hardware: Replacing hardware or an outdated lighting fixture surprisingly makes a huge impact. The best part about replacing these items is that it is an easy do-it-yourself project.
Here are some other ways you can save on a kitchen remodel.
A good reference when considering a home upgrade is the Cost vs. Value report. It is published every year and is widely used in the construction and Real Estate industry. A quick glance at the latest report can tell you how much your home value will increase with a specific remodel.
If you are still unsure if now is the right time to embark on a remodel, read more about upgrading your home now or before it is time to sell.