It’s easy to think a simple bathroom renovation is enough to make buyers feel your property is worth higher than the average property price. The thing is homebuyers perform their research about ascertaining a property’s overall value. In doing so, they get honest views on whether or not such luxurious renovations in their prospective properties are useful to their daily routines or otherwise. In this light, it’s safe to assume that bathroom renovations aren’t a one-stop shop.
However, many homeowners in different countries and communities still believe renovating or adding a new bathroom to their property immediately guarantees a possible price bump of 10-20% on top of their original price. Unfortunately, this isn’t so. The best way to determine whether a certain renovation increases value is to know the homebuyer’s demands in your local area.
There are two kinds of renovations that will help improve your property’s value in the eyes of buyers.
First, general renovations. Changing your roofing and siding does not only improve its aesthetic appeal. It guarantees decades of flawless performance especially if a reliable Edmonton AB roofing company will handle your roofing installations.
Second, case-specific renovations include bathroom remodeling, kitchen renovations, living room overhauls, and other internal residential improvements. Therefore, only use any one or more of these remodelling projects if there is a high demand in your community for an additional bathroom or beautiful kitchens.
Some home renovation experts agree that bathroom renovations are enough. Home Light has an article that gives full detail about it. Read more here.
Case in point: bathrooms are deal breakers (or makers) in a home sale, and buyers will place a hard minimum on their number of desired baths. But does a bathroom remodel increase home value?
Quite simply, bathroom remodels won’t necessarily recoup at resale everything you spent to update it, but they are one of the higher return projects you can do. Anecdotally, a brand new bathroom also helps inspire offers on your house, and small, inexpensive updates to this space could help you fetch 2-3% more for your house.
The catch is every little decision you make (from gutting the tub to the marble pattern of your tile) is high stakes. We looked to top real estate pros and experienced contractors for their best advice on how to tackle a bathroom remodel with an eye on the ROI. (Continued)
On the other hand, making the wrong investments way below the importance or value threshold of homebuyers will never guarantee any ROI from your renovations — including bathroom renovations. Investopedia has an excellent list about the home improvements that seem to work for some homes but not for each one.
1. Swimming Pool
Swimming pools are nice to enjoy at a friend’s or neighbor’s house but can be a hassle to have at your own home. Many potential homebuyers view swimming pools as dangerous, expensive to maintain, and a lawsuit waiting to happen. Families with young children, in particular, may turn down an otherwise perfect house because of the pool (and the fear of a child going in the pool unsupervised). A would-be buyer’s offer may be contingent on the home seller dismantling an above-ground pool or filling in an in-ground pool. The one exception could be if having a pool is standard in your neighborhood, as it can be in warm states such as California, Arizona, Florida, and Hawaii.
An in-ground pool costs anywhere from $30,000 to more than $100,000, and additional yearly maintenance expenses are part of the package. That’s a significant amount of money that homeowners may never recoup if and when the house is sold. Put one in for your own pleasure, perhaps, but know that it could cost you when you sell your home.
2. Overbuilding for the Neighborhood
Homeowners may, in an attempt to increase the value of a home, make improvements that unintentionally make the home fall outside of the norm for the neighborhood. While a large, expensive remodel – such as adding a second story with two bedrooms and a full bath – might make the home more appealing, it will not add significantly to the resale value if the house is in the midst of a neighborhood of small, one-story homes. (Continued)
Remember, it’s important to consider your homebuyer’s interest and purchasing power before deciding on any expensive bathroom renovation or kitchen remodeling project that seems to increase value for many real estate investors.
In case you need to replace or repair your existing residential roof to improve your curb appeal or have decided a bathroom renovation is truly a great course of action, then you can count on us at DDCL. Contact us today to learn more about what we can do for you!