No matter when you’re looking to sell your home, investing in updates can be a great way to increase your home’s value. According to Remodeling magazine’s 2008-09 Cost vs. Value Report (CVR), the following upgrades have the highest payoffs:
Spruce up or replace siding. Updating the exterior of your home is one of the least costly ways to produce a high rate of return. There are several choices when it comes to siding: fiber-cement, wood and vinyl. If you have wood siding, you can also look into painting the existing siding.
Add a deck. Decks typically recoup about 82 percent of the investment you put into them and are something you can enjoy from the moment it goes up. Plus, they are highly desirable if your home doesn’t already have a porch or other existing indoor-outdoor space.
Update your kitchen. If your kitchen has a great layout but is a bit outdated, buying new cabinet door fronts or painting existing cabinets can be an easy upgrade for the room. Update countertops or fixtures to spruce up the look of the room and replace outdated appliances. You know what they say — kitchens sell homes!
Finish the basement or attic space. Adding space to your home can be extremely costly — unless it’s space you already have. Finishing an unfinished space, such as a basement or attic, can add thousands of dollars onto the value of your home. An attic bedroom and finished basement usually recoups around 74 percent at resale.
Upgrade the bathroom. Putting in a new tub, tiles, vanity, light fixtures, floor tiles, and painting your bathroom can bring in big bucks when it comes time for resale, typically yielding about a 75 percent of return on investment. Even simply re-glazing your tub for around $300-400 is worth the investment.
Add low-cost landscaping. Even greenery and flowers that you plant yourself can bring in dollars when it comes time for re-sale. Many people judge a home based upon curb appeal — since it’s the first thing they see — so make the outside of yours impressive.
Add space. With most large projects, such as the addition of a bedroom, bathroom, or basement family room, homeowners see a 71 percent of return on investment. However, before you start, it’s important to know the value of your home and the neighborhood so you don’t overspend or over improve for your area.
How have you added value to your home?