Whether you’ve already purchased your first home or aspire to one day, it’s important to understand the value of homeownership. Owning a home provides so many beautiful opportunities, including wealth building and DIY projects. They make it look easy on HGTV; an ambitious couple knocks out a wall with a sledgehammer and 30 seconds later they reveal the brand new interior of their dreams. All of us catch the bug at some point, and I blame the smell as soon as you walk inside of a Home Depot. Home renovation projects seem so fun! And they can be. But it’s important to educate yourself on the projects that will not only bring you joy, but will also be a smart financial decision down the road.
When thinking about renovating you should always consider your exit strategy. What will a future buyer think about this when we put the house on the market someday? Sure, those pink subway tiles might be in style now, but what about in 8 years? Keeping the big picture in mind and also your wallet. Here are our top 5 home renovations for the best return on your investment:
1. Adding square footage: Whether you finish out a basement, build an addition, or retro-fit a space above a garage, adding heated and cooled square footage is a sure-fire way to build instant equity in your home. When an appraiser estimates the value of the home, the finished square footage is a large factor in determining the value and can end up paying for itself in the long run with a higher sales price. It also can open you up to a larger pool of buyers. Most families of four would say that they desire at least 1,800 square feet when looking for a home. If you can increase your square footage, your home’s listing will be seen by more interested buyers, increasing competition and resulting in a better deal for you.