Which improvements have the highest return on investment?

Look around…is your carpet worn?   Appliances old?  Bathrooms dated? Your home may be in need of a makeover. If so, then you might want to consider spending your money on areas that will give you the biggest bang for your buck.  You will need to know the homes in your area and what market values are in order to keep your improvements realistic.  Your budget is a key factor – it would be a shame to spend your entire budget in remodeling your kitchen and not have enough to update the bathrooms, carpet and paint.

Questions to ask yourself…Are you updating your home for your own pleasure? Or, are you planning on selling it? Or, is there no choice because something is broken?

 Take these steps:

1. Evaluate your home
2. Make a list of projects
3. Estimate the costs of each
4. Put them in order of importance with a timeline for completion

Your list will depend on the current condition of your home – you may be lucky enough to have just one item or project. The following items all have proven paybacks of at least 50% and many are between 70% all the way up to 100%.

#1 – KITCHEN

Spend your budget carefully.  Can you re-face your cabinets instead of replacing them? Granite countertops are nice, but check out the wonderful solid surfaces that are also available.  Stainless steel appliances are great, but all black also has a wonderful look and are a less expensive alternative.  Counter space, storage, and general flow are very important.  Note: Kitchen renovations have a way of spiraling out of control and can be quite costly – stick to your budget!

#2 – BATHROOMS

Functional and attractive is the goal for your bathrooms. Lighting, a new vanity, faucets, and replacing the old medicine cabinet can go a long way. Look into resurfacing your tub and shower – again, a less expensive alternative to replacement.  If you are doing a complete tear out, then you might consider a separate shower and tub.  If there is only one bathroom you will be well advised to keep the bath tub. For flooring, there are attractive linoleum products to choose from if slate or tile is not in your budget.

#3 – ATTICS AND BASEMENTS

Adding livable space to your home usually provides a great return on your investment.  Make sure the structures are in good condition and then go from there.  Again, the budget will go quickly, so spend wisely and select items that will stand the test of time.

#4 – DECKS

For additional value, add a deck!  It must be well constructed and large enough to be a comfortable gathering area.  Do your research and select the materials carefully – consider upkeep, and how long the materials will last in addition to the cost.

#5 – WINDOWS

You may not get a great return on your investment for windows because they can be costly if you are replacing them all. However, old, compromised windows can quickly sour a deal if you are selling your home.  You will certainly see an improvement in energy efficiency with new windows – which will become a great selling point.

#6 – ENERGY

Do consider a new furnace and/or adding air conditioning improves as it will improve your energy efficiency and certainly is an added value.  Like installing new windows, a new heating/cooling system might not give you 100% payback, but it certainly is a good selling point.

#7 – PAINTING

This is one of the most cost-effective improvements you can make!  Choosing neutral colors and having a professional result can give you over a 200% payback – making it well worth your time and money.

And 1 that won’t…

#1 – SWIMMING POOLS

This is an expensive addition.  You will almost certainly not get a good return on your money. It can make your home more difficult to sell. Buyers with small children tend to be cautious and many just don’t want the added work, maintenace and expense.  However, this is a personal choice for you and your family so it may very well be worth it to you.

All in all, improving your home is a worthwhile venture.  Have fun, spend wisely, and enjoy the results!

For more information on Seattle home investments where home improvements will pay off, contact the experts at the Knowles Team at 206-653-0085.