Some home improvements increase the resale value of the home while others can actually decrease the value. The money that homeowners spend on home improvements usually increases the value of the home by the same amount spent. But in many cases, strategic improvements significantly increase a home’s value, even if the improvement itself was inexpensive.
Alberto Mordoki runs a construction company with the help of his son and daughter. Based in Fullerton, California, the family business specializes in various residential and commercial construction projects, as well as drywall and suspended ceilings. Mordoki discusses the best improvements to add value to a home.
Outside the Home
The improvements that add the most value to a home are typically on the exterior of the house because these improvements give a great first impression. For example, you can replace an old garage door with an upscale garage door. This simple upgrade offers the highest recouped cost. A garage door made of durable material such as steel, aluminum, or wood composites with insulation and energy-saving glazing is desirable to most homebuyers.
Manufactured stone veneer on the outside of a house has almost as high a return on investment as the upscale garage door. Adding the manufactured stone veneer improves curbside appeal and will increase the value of the home even if it is just a small section, such as near the entryway.
If you have more money to work with, consider building a wooden deck or patio, suggests Alberto Mordoki. Home buyers enjoy having an outdoor space to relax. A wooden deck will give a better return on investment than a composite deck.
Inside the Home
In the minds of most buyers, the kitchen is the most important room. It is the place most buyers focus on when deciding if they want to purchase a house.
A minor kitchen remodel will have a better return on investment than a major renovation. Installing energy-efficient stainless-steel appliances, painting the cabinets, and replacing old countertops are just a few ways to catch the eye of any potential buyer. Additionally, replacing faucets, hardware, and flooring can increase the value significantly, notes Alberto Mordoki.
The bathroom will be the second focus of any homebuyer. As such, you ought to spruce up your bathrooms as well. Aim for mid-range bathroom remodels to see the best return on investment. For example, you can update old tile and wallpaper and switch out the toilet for a nice low-flow option. It’s always a good idea to replace fixtures and lighting.
If there is only time for one improvement, you should paint. A new coat of paint makes any space look fresh and clean and it is a simple, cost-efficient improvement. Neutral colors will appeal to most buyers and increase the desirability of the home.
Alberto Mordoki on Improvements to Avoid
Surprisingly, some home improvements decrease the value of a home. Alberto Mordoki recommends avoiding luxury upgrades (you should stick to the mid-range renovations to avoid overspending and reducing their return on investment). Likewise, upgrades should conform to the neighborhood. In most cases, buyers don’t want a house that sticks out like a sore thumb.
Be careful about converting too many rooms or building too many additions. Because many people want a house with a garage, it’s critical that you not remove your garage. Add-ons that don’t fit well with the floor plan interrupt the flow and functionality of the house and these changes can also deter potential buyers.