Whether you're preparing to sell your home or want to build equity, remodeling projects are an excellent way to boost your home's worth. Real estate value is determined by an appraisal, which considers multiple factors. To achieve the highest return on your investment, you need to understand the process and what affects the pricing outcome. Find out exactly why remodeling translates to value in this scenario, below.
How a Remodeling Project Can Increase Your Home's Value
Two important aspects of the appraisal can be affected by a remodel: usable square footage, and condition. Part of the process considers the square footage of your home compared to the average price per foot in your area. By tackling projects that increase this number, such as basement remodeling, can further increase the value.
The interior condition of the home can also help you achieve a higher property value because buyers will pay higher prices for aesthetics. While buyers don't necessarily control the local real estate market, their choices do impact the results, which go on to influence the appraisal process. In most cases, buyers will be willing to pay more for homes that are visually appealing.
Projects That Offer the Biggest Return on Investment
Certain home improvements offer a bigger return than others, so if you're ready to update your space, it's wise to focus on the big-ticket items. At the top of the list is kitchen remodels. According to Remodeling Magazine, you can expect around a 53% return on a major update and 72% on a minor update. If the layout of the space is functional already, you can achieve the highest value boost by changing out kitchen cabinets, adding a modern backsplash, and installing new flooring.
A bathroom remodel is another valuable project. Shower and bathtub combos usually work best in shared bathrooms, while jetted tubs and walk-in showers that create a spa-like feel work best for en suites. Also, opt for creative storage solutions and a neutral color palette.
Finishing a basement is another great way to boost your home's value because it creates more usable space. If it's already finished, you should consider breaking the area up to increase your bedroom and bathroom count. Room count is another factor in the appraisal process, so by adding more of these elements, you boost value.
Turn to Park Falls Building & Hardware for high-quality and affordable building supplies. For over 30 years, the Wisconsin-based company has assisted contractors and DIYers throughout the North Woods area with their remodeling projects. Not only can you purchase your supplies from the hardwood store, but they can also assist you with designing the space. Request a free estimate today by calling (715) 762-3255 for their Park Falls location or (715) 687-4125 for Stratford, and get some design inspiration by browsing their online gallery.