Which Home Improvements Affect Home Value?

posted in: Home, Remodeling

Which Home Improvements Affect Home Value - OneRestore

The value of a home can be a subjective observation depending on who you’re asking, which makes it a tricky concept. With that being said, determining which improvements affect home value the most can be difficult for a home owner. For example, choosing to install a recording studio may be extremely valuable to some but not valuable at all to others, and therefore it may not increase the home’s potential selling price at all. Similarly, upgrading your kitchen with the most stellar appliances, custom cabinets, and a brand-new luxurious look may not give you a full return on your investment either. However, with many home improvements you will experience a rise in the home value as well as personal gratification from the renovations for as long as you live in the home. When determining which home improvements affect home value most favorably, it is important to keep in mind a variety of factors.


When making enhancements to your home, it is necessary to consider its location. It will not yield the greatest investment return if you improve your home much beyond the average value in the neighborhood. For example, you are not likely to see a tremendous return from adding a second story to your home if you live in neighborhood of only traditional 2-bedroom bungalow style homes.  However, if you plan to stay in the home for some time, an addition can be an economical way to gain a few extra bedrooms. That way, you do not have to relocate and deal with other matters related to moving like an increased mortgage amount, additional closing fees from both selling and buying, a higher interest rate, or changing school districts as examples. 

State of the Local Market

The condition of the local real estate market can affect the investment return on your home. In a weak real estate market, you should expect low returns on improvements. However, in an active real estate market, you have the potential to stand out to prospective buyers by attracting attention with a fresh remodel. Another key concept to keep in mind is the fact that the more expensive a home is, the greater the return will be in most cases.  For example, constructing a $30,000 kitchen upgrade in a $500,000 home as compared with a $150,000 home will yield much different returns.

Stay in Sync with the Rest of the House

Performing extensive improvements to only certain areas of your home may not be the most profitable decision. For example, choosing to renovate the back porch with a brand new jacuzzi, a 10-jet shower, and a complete stone fireplace may provide substantial enjoyment while you live there. However, if the home has paneling in the living room, faded carpet in the bedroom and outdated wallpaper in the kitchen, your money might be better spent elsewhere. Extensive improvements isolated to one section of the home can cause the rest of the home to appear less impressive by comparison. It may be better to give a variety of areas in your home a smaller-scale face lift for a greater return on investment.

Be Careful with Luxury Upgrades

Lower to mid-ranged homes do not seek the benefits of high-end upgrades as greatly as an upscale home would. You are less likely to be compensated for your invested payment the more luxurious the upgrade. However, in high-end home, marble floors and custom cabinets could reap major reimbursements.

Personal Choices Can Be a Liability

The more personally driven a remodel is to you, the more likely you will see less of a return. For example, purple colored carpeting or a retro kitchen might be your lifetime fantasy, but it may not appeal to the general population. In this case, neutral colors tend to be a safer option if you plan to sell in the near future. However, if you plan to stay for a longer period of time or a lifetime, this type of renovation can bring a great deal of personal enjoyment.

Swimming pools

Depending on the location of the home and the circumstances, the addition of a pool could either be very beneficial or actually reduce the value of your house. For example, a home located in Florida, California, Arizona, or other area with a hot climate, will see an increase in value with the addition of a pool. However, if the prospective buyer has small children, then the dangers of owning a pool might outweigh the advantages. Therefore, if your home is in a “starter neighborhood” where the majority of prospective buyers would be young couples with small children, then a pool might not have a positive impact on home value. Additionally, in colder states like Michigan and Minnesota where you are not able to use a pool year-round, it may be more of a nuisance to maintain than the resulting benefit. Pools, depending upon the person and location, can generate more of a liability for the potential buyer and result in little to no increase in selling-value.

Rooms that don’t fit with the floor plan

Converting areas of your home, such as the back porch, into an additional living space may actually turn away future buyers. Although turning the back porch into a family room may seem like grand idea in the moment, some people may not want to look out of their dining room window to see a family room. However, if the opening between the rooms is a slider or can be properly converted to an opening that makes the new room look like part of the original home, the porch renovation may not disrupt the natural flow and just might work.

Garage Conversions

Along with the idea of converting areas of your home for extra living space, garage conversions can also decrease the value of your home. Most individuals want to have a place to park and protect their vehicles, regardless of how extravagant the garage renovation. This could limit the number of buyers who would consider purchasing a home with a garage remodel in lieu of covered parking.

These are just a few factors to consider when planning to remodel a portion of your home. If you plan to sell in the next few years, it is always best to seek the advice of a professional before settling on a particular project.

OneRestore is a restoration company based in Ocala, Florida serving the greater Central Florida area. Through our experience with disaster restoration, we have spent a lot of time renovating and remodeling homes. We now have a remodeling division and you no longer need a disaster to get our expert remodeling advice. Since we work and live in the Central Florida area, our remodeling consultants in Gainesville, Ocala, The Villages, and Crystal River have the knowledge and experience to guide you to renovations that you will love as much as the selling price when it comes time to move on. Eliminate the guessing – know which home improvements affect home value before you decide.



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