ROI-Friendly Home Repair Projects
In the real estate investment world, there are lots of things that need to be learned if success is to be achieved. An individual doesn’t need to be a professional real estate investor in order to figure out these things. In the case of a homeowner planning to sell a house, getting its value up is one of the first priorities that should be worked on. It is a proven concept that the right home improvement project is the best way to get the value of a house amped up. However, it is to be noted that there are specific types of projects that would readily yield a good ROI.
Yes, doing a home improvement is an investment which requires that the money spent on it be earned back. The return of investment comes in fast when certain parts of a house are worked on. These projects would cost a lot of money on the part of an owner most especially when the focus is on major structural aspects. A house may look okay for a homeowner or seller but things are definitely different on the perspective of a buyer.
In order to gain the biggest and guaranteed ROI, only the right projects must be focused on. What are these specifically? There are online real estate blogs and forums that could give reliable and updated information about this matter. The real estate industry is always evolving and whatever might be valuable at this point in time might not have the same value 2 to 3 years in the future.
If current trends in the real estate market are examined, some revealing concepts become apparent. A homeowner could focus on very obvious areas of the house for these home repair projects. In terms of cost vs. recovery ratios, the kitchen would be the first on the list. A lot of industry observers have noted that as much as 80% guaranteed ROI could be expected from kitchen renovation projects. Most buyers see the kitchen as the “heart of the home” since this is where family members will spend those “bonding moments”. If there are divisions or half walls that exist in the kitchen, it might be a good idea to tear it down. The spaciousness of a kitchen is a big convincing factor for buyers (particularly women) to decide positively on purchasing a house.
Bathrooms should also be on the top of a high ROI project list. Industry figures on ROI here have been seen at 70-78%. Getting a toilet bowl, tub, or even the tiles replaced could definitely boost up the ambiance of the area. Prospective buyers pay a lot of attention to this part of the house since their level of comfort while living in a house will depend largely too on the kind of bathroom present. Houses for sale with newly renovated bathrooms are given high market values by real estate appraisers.
The next one on the home renovation list is the provision for a “greener” home environment. It means making a house more energy efficient through the installation of features that would keep it well-ventilated during the hot season and insulated throughout the cold months. The addition of ceiling fan for each room could be a good idea. It is also okay to get those storm doors installed. Buyers will readily feel the cozy ambiance of a specific house once they go for a site visit. Of course, property appraisers will also give such improvement projects high ratings. In terms of ROI, this specific move has been seen to yield 50-70% returns.
Getting bedrooms renovated or improved will also affect the value of the house considerably. The ROI rate of 73% has been seen lately and this would apply most if an attic bedroom will be added. Converting the attic space into a bedroom is seen as an attractive feature for many real estate property buyers at the current time. If a home office connected to the bedroom could be installed, it will also be a big plus factor on the increase in value and ROI of the whole property. Most people these days bring work at home and this renovation will be seen as favorable for them.
The home repair ROI rates mentioned here are true all over the industry. However, there are local real estate guidelines and trends that would dictate which project would yield the best possible ROI. A homeowner who is aiming to sell a house or get one appraised should consult with the local real estate experts in order to be guided on the right path.
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