Some say the secret to a good residential real estate investment is purchasing the worst house on the block and fixing it to become the best. Unfortunately, renovations in older homes can quickly become quite expensive. Some upgrades will quickly pay for themselves and add to your home's resale value, while others will not. Where is the best place to put your money for the best return on your investment (ROI)? Here are a few suggestions.
1. Minor Bathroom Remodels
Two rooms in your home offer the most ROI. They are your kitchen and your bathrooms. Even minor renovations in these areas can pay for themselves. Minor bathroom remodels can return an average of 102%. But there is a difference between a minor remodel and a major remodel.
Minor bathroom remodels usually do not involve significant demolition or extensive tile work. Some minor changes that make a difference may be as simple as replacing the following:
Even replacing an outdated tub is doable as a minor project if you use the same size or footprint. Consider adding storage or organization solutions in your bathroom. There is usually never enough of either one of these in this space.
Avoid eliminating all of the tubs in your home for walk-in showers. While these may be your preference, families with small children or pets may only consider purchasing a home with a tub when your home goes on the market.
2. Minor Kitchen Remodels
The kitchen often serves as the heart of the home. A family spends a lot of time in this room and needs it to be welcoming and organized. Minor kitchen remodels normally use the existing footprint and may leave good cabinetry in place. Some small projects that can make a significant difference and return an average of 98.5% include the following:
Remember, while you may be keeping an eye on your ROI on your real estate, you are also creating a space for your and your family's enjoyment while you live in your home.
To sell your home, you must first get people through the door. Buyers often decide what they will find inside your home by the first impression they get from the street. Your landscaping is one of the significant components of your curb appeal and can have an ROI on average of 100%.
Some easy landscaping projects that will achieve your goals include the following:
Consider adding plants that will give your landscape pops of color throughout several seasons. But remember to take care of them once you place them outside.
To learn more, contact a residential real estate professional in your area.