Homeowners typically renovate their houses for two reasons: if it is your current home, you may want to upgrade either the aesthetics or the convenience. If the house is an investment property, remodeling is usually done to increase the home’s value or to make repairs.
Whatever the reason for remodeling, it is always prudent to consider how it will affect the overall value of the house.
Keep in mind that many home remodeling projects will add little to no value to the selling price of your house. Some remodeling projects can be counterproductive and negatively impact the value of the property.
When it comes time to sell, it is essential to know which projects will improve the value of your house. After all, you will want to make a profit, or at least recoup the cost of the renovation.
Most home renovations can become quite costly. It is beneficial to consider whether or not the remodel will be a smart long-term investment. Let’s take a look at the best possible renovations to increase the value of your investment property in Tampa, Florida.
Remodeling the Kitchen
Most homeowners tend to associate the kitchen with the identity of the house as a whole. Most people spend a lot of time in the kitchen, so renovating this area of the house can add value. In some cases, it is possible to add a 25-30% profit to the price of the renovation.
Always be aware that it is possible to go overboard with a kitchen remodel. A good rule to practice is that it shouldn’t be too ambitious. Try to match the overall style and look of the neighborhood.
On average, most kitchens produce an ROI of 54%. This means that if you invest $100,000 in your kitchen, you can expect a return of $54,000. For minor repairs, you can increase the ROI to 81%.
Generally, it is best to keep the original layout of the kitchen. The best areas for improvement are the cabinets, appliances, lighting, and paint. Painting is cost-effective and affordable. Adding smart appliances and light can add functional and aesthetic improvements to your kitchen.
Reclaim Unused Space
Adding spaces and increasing natural light can significantly increase the appeal of your home. However, building a brand new room is usually not a budget-friendly task. There are often hidden costs and complications with trying to add a new room.
A more straightforward solution is to use existing space in your house and reclaim it as something brand new. For example, many people convert their attic space into a spare bedroom. You can even turn your garage or basement into a fantastic new living space.
You can even turn unused space into a man cave, a second living room, or even a functional apartment. The ROI on remodeling your basement can reach as high as 70% on average. Also though most basement remodels cost around $65,000, it is an option that can yield profitable results.
Go Green with Energy Efficient Improvements
One of the best ways to upgrade the appeal of your home is to add green or energy-efficient improvements. As consumers are becoming more environmentally conscious, making your house more energy efficient will appeal to more buyers. In addition to adding appeal, it will improve the value and save on expensive utility costs.
Here are several excellent ways to improve your home with energy efficiency in mind:
- Upgrade to smart home appliances and smart lighting fixtures. Smart thermostats and smart lighting systems can significantly cut down on heating and energy costs.
- A simple and affordable upgrade that everyone can make is to replace your old bulbs with LEDs. LEDs not only last longer, but they can save a significant amount of energy.
- Energy-star rated windows are a substantial investment, but the ROI is around 70%-90%. Most states in the U.S. also offer Green Energy Tax credits.
- Always check your house’s insulation. Proper insulation can save money and add value.
Add to Your Curb Appeal
When it comes to attracting buyers, upgrading the outdoor appeal of your house can significantly increase your chances. First impressions are essential, and your exterior can add up to 10% of your home’s value.
Simple ways to improve curb appeal include: painting the exterior, properly paving the driveway, and adding a deck, patio, or garden.
When it comes to remodeling your Tampa real estate investment, not all projects are equal. Always consider which projects are going to get you the best ROI and improve resale value. Improving your home doesn’t have to be difficult and renovations can be well worth the effort. There are many excellent investment properties for sale, Tampa, FL, ready for your improvements.