7 Pricey Home Renovations Worth Every Penny, According to Real Estate Experts
As we veer into the new year, you may be looking around your home and thinking about what renovations you can make to cultivate a more attractive and hospitable space. You may also be thinking about what you can do to make your home sell for far more than you paid for it.
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There are quite a few moves you can make here. A general rule of thumb is the more money you invest in fixes and upgrades (provided you spend it wisely and hire reputable professionals), the more you stand to make if/when you go to sell your home.
GOBankingRates spoke with real estate experts to get the lowdown on the most expensive renovations that are 100% worth their steep price tags. Not only will these home renovations transform your space for the better, they will also up the value of your home — sometimes dramatically — making them worth every penny and then some.
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Kitchen Remodel
The kitchen is the heart of any home, especially if occupied by a family. This alone makes it worthwhile to invest in a major remodel, particularly if anything in it is outdated or, frankly, falling apart. But this isn’t a cheap endeavor. According to HomeAdvisor, a kitchen remodel can range between $14,612 and $41,407.
And a kitchen remodel is typically an “all or nothing” endeavor.
“The biggest challenge with remodeling one area is that it highlights the other areas that are not updated,” said Marisa Simonetti of Simonetti Real Estate Team. “Fresh updates can make older parts stick out like a sore thumb. That’s why it’s important to commit to the project fully.”
Go for stainless steel appliances when you can afford it. “[They] may be pricey, but can elevate a kitchen from a B or C to an A class space,” Simonetti said.
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Foundation Repair
A home is a hazard if it doesn’t have a strong foundation. If your home is shifting or sinking, this can cause all sorts of problems — and even make the home uninhabitable. This is why investing in a foundation repair renovation can be well worth your time and money.
“The costs depend on the size of the property but can run from a few thousand dollars to tens of thousands because it must be performed by skilled professionals,” said Mark Severino, a real estate investor in Dallas and the owner of Best Texas House Buyers, LLC.
Bedroom Addition
Who doesn’t want an extra bedroom, whether it’s for your kids, your guests or even to be used as an office space?
“Adding another bedroom increases a home’s functionality and also immediately increases a home’s resale value,” Severino said. “The cost depends on how much structural change needed to happen. If you just convert an existing study to a full bedroom that will be less expensive than removing an exterior wall and expanding the property’s square footage; however, when done correctly, this is the best renovation possible.”
Finishing the Attic
Attics can be quite inhospitable. They are often dusty, dark and dank. But you can make yours much nicer with a little TLC — and a lot of money.
“Increasing the height of the attic and finishing it as additional square footage is affectionately known as doing a ‘pop-top,’” said Severino. “This means adding a second (or third) floor to an existing property by finishing the attic with full height walls, adding insulation and finishing the interior with lights, electrical and windows. This is a very expensive renovation that is a full structural change, but the home value improvement is significant.”
Outdoor Living Space
Anyone who can appreciate a private oasis in the backyard or a space to entertain folks on those enchanting summer nights would love an outdoor living area. Consider creating a beautiful one in your backyard if you have the space.
“Homeowners can create an elaborate outdoor living area with features like an outdoor kitchen, fire pit, high-quality landscaping and comfortable seating areas,” said John Gluch, a real estate coach at Gluch Group.
This is an expensive renovation that can range substantially in price.
“The cost of creating an outdoor living space can range anywhere from $15,000 to $75,000 or more, depending on the design, including elements and materials used,” Gluch said.
But it’s worth it; a well-designed outdoor space serves as a bonus living area and can radically up the value of your home.
“These spaces can be a major selling point and offer a high return on investment,” Gluch said.
Home Wellness Spaces
As more of us work from home and the emphasis on self-care continues to pick up steam in society at large, there’s a great deal of interest in home wellness spaces.
“By converting a space in your home into a wellness area, such as a home spa, sauna, meditation room or a small indoor gym, you can appeal to people looking to tap into this trend,” Gluch said. “Depending on the type of wellness space you choose to create, the costs can range from $10,000 to $50,000 or more.”
This pricey renovation is worth it not only because it makes your home more desirable (both for you and future buyers), but because it also makes it unique, helping it to “stand out among other properties in your market,” Gluch said.
Creating an Open Floor Plan by Removing Walls
It’s the trend that just won’t die: open floor plans.
“Open floor plans are still a highly attractive selling feature for prospective homebuyers,” Gluch said. “Removing walls to merge spaces like the kitchen, living and dining areas into a single, open floor plan can have a significant impact on your home’s purchase price. The cost to undertake these sorts of renovations ranges from $2,500 to $10,000 for non-load-bearing walls and can be over $10,000 for load-bearing walls, depending on complexity and finishes.”
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