Tag Archives: home improvements

Home Improvements

Investing in Home Improvement Projects

Investing in home improvements can significantly enhance property value, but the return on investment (ROI) varies by project.

Minor Kitchen Remodel
Updating appliances, refacing cabinets, and installing new countertops can yield an ROI of approximately 70%–80%.

 

Cabinetry:

Sleek, modern cabinets with a mix of open shelving and closed storage provide both style and functionality.

Soft-close hinges and pull-out organizers enhance usability.

Countertops:

Durable materials like quartz or granite are featured for their aesthetic appeal and low maintenance.

Waterfall edges on islands or countertops add a touch of luxury.

Appliances:

Stainless steel or matte-finish appliances are seamlessly integrated for a modern, cohesive look.

Energy-efficient models with smart technology, such as Wi-Fi-enabled ovens or refrigerators, offer convenience and sustainability.

Lighting:

A combination of pendant lights over the island and recessed ceiling lights ensures a well-lit workspace.

Under-cabinet LED strips add task lighting and ambiance.

Backsplash:

A statement backsplash made of glass, subway tiles, or geometric patterns creates a focal point.

Extending the backsplash to the ceiling for a dramatic effect is a trending choice.

Flooring:

Durable and stylish options like hardwood, luxury vinyl plank (LVP), or large-format tiles are chosen for their resilience and aesthetic value.

Color Palette:

Neutral tones dominate, with pops of color added through accessories or a bold island.

Two-tone cabinetry (e.g., light upper cabinets and dark lowers) adds visual interest.

Benefits of a Kitchen Remodel:

Increased Home Value:

A kitchen remodel offers an average ROI of 70%–80%, depending on the scope and quality of materials.

Enhanced Functionality:

Improved layouts, like open floor plans or additional counter space, make cooking and entertaining more enjoyable.

Energy Efficiency:

Upgraded appliances and lighting can significantly reduce energy costs.

Modern Aesthetic Appeal:

A contemporary kitchen can make a lasting impression on potential buyers and elevate the home’s overall feel.

Cost Considerations:

Average Costs:

A minor kitchen remodel (e.g., refacing cabinets, new countertops) can cost around $10,000–$20,000.

A major remodel with custom cabinets, high-end appliances, and structural changes can range from $30,000–$75,000 or more.

Luxury Remodels:

Premium finishes, smart technology, and bespoke features can push costs to $100,000 or higher.

 

Customizations to Consider:

Add a kitchen island with seating for casual dining and additional storage.

Incorporate a walk-in pantry or pantry wall for organized storage.

Choose a farmhouse sink or a sleek undermount sink for practicality and style.

Install smart home features like app-controlled lighting, faucets, or ovens.

Opt for hidden outlets and pop-up power strips for a clean look.

 

This Old House

Home Improvements, Investment Strategies

Ways to Increase Value

What are the Top ways owners can increase their property value or generate revenue from their properties? In this two part blog I will give a 7 ways on how owners can increase their property value or generate revenue from their properties:

  1. Make improvements: Making improvements to the property can increase its value and make it more attractive to potential buyers or renters. Examples of improvements could include upgrading the kitchen or bathrooms, adding square footage, or improving curb appeal.

Let’s say a homeowner has a property that was built in the 1980s and hasn’t been updated since. The kitchen has outdated appliances, the bathrooms have old fixtures, and the carpet is worn and stained. The homeowner decides to invest in making improvements to the property by renovating the kitchen, upgrading the bathrooms, and installing new flooring throughout the property. After the renovations are completed, the homeowner hires a professional appraiser to evaluate the property’s value. The appraiser takes into account the improvements that were made and compares the property to similar properties in the area. Based on this analysis, the appraiser determines that the property is now worth $50,000 more than it was before the renovations were made.

In this example, the homeowner was able to increase the value of their property by investing in renovations and upgrades. The improvements not only made the property more attractive to potential buyers, but they also increased the property’s value in the eyes of the appraiser.

  1. Rent out a portion of the property: If the property has additional space, such as a basement, garage, or extra bedroom, it can be rented out to generate additional income.

Let’s say a homeowner has a property with a detached garage that is not being used. The homeowner decides to rent out the garage as a storage unit to generate additional income. The homeowner cleans out the garage, installs shelves and locks on the doors, and advertises the space for rent on local classifieds websites and social media.

After a few weeks, the homeowner finds a tenant who is willing to pay $150 per month to use the garage for storage. The homeowner and tenant sign a lease agreement that outlines the terms of the rental, such as the payment due date and the length of the lease.

In this example, the homeowner was able to generate additional income by renting out a portion of their property that was not being used. By turning the unused garage into a rental unit, the homeowner was able to generate steady monthly income without having to make any significant investments or changes to the property.

Keep track of your project costs with these free project cost templates.

  1. Convert the property into a rental property: If the property is not currently being used as a rental property, the owner can consider converting it into one. This can generate steady monthly rental income and potentially increase the property’s value over

time.   Let’s say a homeowner has a property that they inherited from a family member but they already have a primary residence. The homeowner decides to convert the inherited property into a rental property to generate monthly rental income. The homeowner hires a property management company to handle tenant screenings, lease agreements, and maintenance issues.

After making some minor improvements to the property, such as repainting the walls and upgrading the appliances, the property is listed for rent. After a few weeks, a tenant is found and they sign a lease agreement for a monthly rent of $1,500.

In this example, the homeowner was able to generate steady monthly rental income by converting the inherited property into a rental property. This can be a good option for homeowners who have a property that is not being used or who are looking to generate additional income without having to sell the property.  To keep track of your  rental income, Zillow offers Rental Income and Expense Forms and Tools  to down load and use for free. You can get them here.

End of Part 1.

Home Improvements

What are the best home improvements that yield the highest return to the home’s value?

There are several home improvements that can increase a home’s value, but the specific improvements that yield the highest return on investment (ROI) can vary depending on factors such as location, the current state of the housing market, and the type of home. Here are some common home improvements that tend to have a high ROI:

There are several home improvements that can increase a home’s value, but the specific improvements that yield the highest return on investment (ROI) can vary depending on factors such as location, the current state of the housing market, and the type of home. That being said, here are some common home improvements that tend to have a high ROI:

  1. Kitchen remodel: Upgrading appliances, countertops, cabinets, and flooring can all improve the look and functionality of the kitchen, which is often seen as the heart of the home.
  2. Bathroom remodel: Updating fixtures, adding a new vanity or shower, and replacing old tile or flooring can make a big difference in the appearance and functionality of a bathroom.
  3. Outdoor improvements: Adding a deck, patio, or landscaping can improve curb appeal and create an attractive outdoor space for entertaining.
  4. Energy-efficient upgrades: Installing new windows, insulation, or energy-efficient appliances can not only save on energy costs but also make a home more attractive to buyers who are interested in eco-friendly living.
  5. Adding square footage: Adding an extra bedroom or bathroom or finishing a basement can increase the home’s living space and overall value.

It’s important to keep in mind that not all home improvements will yield a high ROI, and it’s important to consider the cost of the improvements compared to the potential increase in home value. Home Guide – Estimate Project Costs

 Additionally, it’s always a good idea to consult with a local real estate agent or home improvement professional for personalized recommendations based on your specific situation. What is the true cost and return on my project.