If you’re a homeowner, chances are your home is your most valuable asset. Taking care of it and keeping it updated are beneficial, both in terms of comfort and eventual return on your investment, should you ever choose to sell it.
However, not every home project or update you want to tackle will result in a higher property value, and knowing how to balance the cost of a renovation versus how much your home’s value will actually change is critical to making the most of your money and your time. Whether you’re looking to sell in the near (or far) future or you would simply like to freshen up some spaces, here’s how to be smart during renovation projects.
Choosing the Right Renovations
Choosing what to change about your home is a very personal decision. After all, no one has to deal with the changes as much as you do! Still, there should be an understanding of what you’d like to accomplish and how much it will impact your home’s overall value, if it will at all. While there’s no harm in tackling a project that would make you happy–even if it doesn’t add to the eventual sale price of your home–there are certainly tasks you can prioritize to get the best of both worlds.
To choose which projects best suit your goals, consider the variables you can control—and the ones you can’t.
Renovation Variables You Can Control
The big picture. Most homeowners have an idea of how long they plan to be in a home. Is this your forever place, or are you thinking about moving out in the next five years? This is a critical factor in determining where to invest your money. Some elements can pay for themselves very quickly in terms of use or increased value (like a central air system), while others take time to earn back what you spent (like energy-efficient windows).
Type of project. Another thing that you can control, at least to some extent, is how to handle project difficulty. DIY projects may save you some money, but do you have the skills, time, and physical ability necessary to do a good job? Hiring a professional usually costs more upfront, but in exchange, you tend to get a higher-quality end result. Choose renovations that fit into either your own skill set or your budget allocation for a contractor.
Your budget. How much are you willing to spend on home renovations? Think about which fixes have the best return on investment versus the ones that, while cheaper, don’t gain back as much value. It’s much cheaper to paint a room for a whole new feel, while hardwood floors cost more but contribute more value. Which is more important to you, and which does your budget best accommodate?
Renovation Variables You Can’t Control
The types of renovations you’re ready for will also be determined by some factors entirely out of your control, such as:
The age of your home. Is your home old? If so, the existing breaker box may not support that hot tub you want to install, requiring a full home rewiring project. Keep your home’s age–and quirks–in mind.
The weather. Depending on the climate where you live, some renovations make more (or less) sense. Installing tough roofing that can stand up to snow and ice is a lot more valuable in places where such elements are common and present a constant hassle.
Your timeline. If you’re making renovations because you’re in the process of selling the home, you probably already have some deadlines regarding when you need to be out of it, making lengthy renovations like an entire addition unreasonable and impractical. Conversely, if you’re renovating just for home improvement, you can consider these bigger tasks and even plan them around your schedule.
3 Cost-Effective Whole Home Renovations
Some renovations just make sense no matter what your situation is. If you know you need some updates but don’t know what kinds of projects come up the most favorable dollar-for-dollar, consider starting with fixes that impact your whole home:
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Accessibility
There is no way to predict what will happen in the future, and anyone of any range of mobility can benefit from making your home more accessible. While most people think of wheelchair ramps and shower handles as accessibility features (and they are), even simple options like choosing a walk-in shower over a tub or modifying toward a step-less entrance can make a big difference.
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HVAC
Homes that invest in energy-efficient central heating and cooling can see an increase upwards of 10% in value as long as they are in an area that benefits from such upgrades. With Oklahoma weather ranging from sub-freezing to the mid-90s, households here rely on both heating and cooling year-round, so an HVAC upgrade will definitely be worth the cost and effort.
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Additions
Any home is going to see a bump in value when a full addition project is completed. Bathrooms and bedrooms generate the most return because of the added appeal for larger families, but your expansion doesn’t need to be its own room; simply expanding your living room, for instance, can still make a big difference.
3 Home Renovations that Aren’t Really Worth It
Many renovations stand a decent chance of recouping their costs when the home sells. However, there are some changes you can make to your home that might sound appealing but do little in the way of increasing property value. If you want to make these changes, it should be because you want them to enjoy—otherwise, you’re likely never going to recoup the expense put into renovations like:
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Swimming pools
A swimming pool is great unless you own one. For many potential homebuyers, the maintenance associated with keeping a pool clean, usable, and safe is more than they want to take on. And, not only can swimming pools increase your homeowners insurance, they don’t do anything for your property value.
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Garage conversions
In general, the more square footage you can add to your home, the higher its value will climb. Garage conversions, however, are the exception. Research indicates that most families would rather have the space for their vehicles over the extra square footage, so removing the garage in favor of a living space can end up reducing the overall value of the home.
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Windows
Windows are important for any home and are essential for keeping energy costs reasonable. The cost of window replacement is hard to recoup. Most homebuyers will view any existing windows as “just fine” unless there are obvious flaws, like cracks, so installing brand new windows or leaving the old won’t make much of a difference to a potential buyer.
Cost-Effective Home Renovations by Room
If whole house projects are outside of your scope, there are still plenty of tasks you can tackle that are cost-effective while simultaneously providing a return on your investment.
Kitchen
The kitchen is one of the areas with the most to gain. Kitchens, on average, return about 52% of the investment when the home sells. Projects can range from replacing all the countertops to adding hidden outlets or choosing one appliance to upgrade. (Drawer-style microwaves are on trend right now.)
Bathroom
Like the kitchen, the bathroom is a peak renovation zone, and bathrooms end up being the deciding factor in most home sales. While you can certainly add a shower to a half bath, those looking to tackle smaller projects can simply update the fixtures (say, from steel to brass) and consider a new paint job. If you know how to do tiling, this can be a great DIY improvement with significant returns on the cost.
Cost-Effective Home Renovations to Optimize the Outdoors
Your home is more than just bedrooms and bathrooms. Even houses with very little in the way of a yard can still make outdoor improvements that boost property value and increase your ability to enjoy the space you have.
Features
If you have the space, outdoor features like gazebos can boost the resale value of your home while simultaneously providing a leisure location. If you’re looking for something with a smaller budget and footprint, consider simply adding shade, such as with a retractable awning that can turn an area near your house into a recreation space.
Walkways and driveways
Everyone from your family to your mailman relies on your property’s walkways at some point. Even if the only thing you have is a driveway or a sidewalk up to the door, repairing cracks or putting down new stones can make a big difference when it comes to adding value, curb appeal, and safety.
3 Cost-Effective Home Renovations Trending in Oklahoma
Oklahoma is situated in a part of the country where there are some easy and cost-effective home renovations that you can invest in for broad appeal. Trends indicate that across the region, popular home features netting more value include:
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Fences
Lower property prices and less population concentration allow even homeowners in Oklahoma’s urban areas to enjoy some kind of back or front yard. Fences help to establish privacy and peace and allow pets, kids, and families to take advantage of temperate weather for most of the year.
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Central air
No matter where you are in Oklahoma, central air is a must for more months out of the year than not. This whole-home renovation is one of the most lucrative, and it comes at a fairly reasonable cost.
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Ceiling fans
Fans can be used strategically during different seasons to make energy usage more efficient and improve the feel of a room. Installing ceiling fans requires minimal skill, expense, or expertise, making it a popular and cost-effective renovation option in Oklahoma.
Renovate Your Home the Smart Way with Phoenix Construction
Successful and cost-effective home renovation requires careful strategy to maximize your investment. The experts at Phoenix Construction provide professional, high-quality renovation services to fit any budget. Whether you’re looking for a simple update or a whole-home remodel, Phoenix Construction has the broad range of experience, expertise, and skill sets to make it happen.
Phoenix Construction is a locally owned company with more than 100 years of combined experience building, restoring, and renovating our Oklahoma community. We’ve been a BBB-accredited business for more than 10 years and we treat all our customers with the honesty, respect, and professionalism you deserve. Contact us today to discuss your home renovation goals and receive a free estimate.
