Smart Renovation Choices: How to Determine What to Renovate and What to Avoid

Whether you’re refreshing a long-time residence that feels behind the times or revamping a home you’re going to flip, renovations offer an exciting opportunity to personalize the space.

The challenge, however, lies in navigating the renovation process without bringing on too much stress or excessive costs. Prioritizing which areas of your home deserve immediate attention and which should be avoided is key to a successful and financially rewarding upgrade.

Setting Realistic Renovation Goals

Before diving into renovation activities like demolishing walls or tearing out old flooring, it’s vital to outline specific and realistic goals for your project. Understanding what your actual objectives are will not only guide your renovation decisions but also ensure efficient budgeting and avoid unnecessary expenses.

To begin with, reflect on the real reason behind your renovation. Whatever your renovation goal, whether it’s increasing the amount of square footage in a space you live in every day, adding to the resale value if you end up selling, or simply switching out an old obsolete style with something new and more modern-looking – will help guide future decisions.

If increasing your home’s market value is the objective, a more strategic plan is essential. Real estate professionals highlight that not every renovation appeals equally to prospective buyers. Focusing on key areas such as updating kitchens and bathrooms or adding usable square footage is likely to bring the most significant financial return.

Keep in mind that though some renovations could seem attractive for you personally – they might not necessarily increase buyer value. Renovations can also be both costly and time-consuming, and you need to have real expectations as far as what your budget and timeline will allow. Additionally, utilizing estimating software construction can aid in accurately forecasting expenses and timelines for your project.

Prioritizing Renovations That Increase Home Value

Making informed decisions about home renovations can greatly affect your property’s value. Beyond just personal satisfaction, selecting projects that yield a substantial return on investment can enhance your home’s sale potential.

Focus on home improvements known for their positive ROI, such as:

Kitchen Remodels

The kitchen is often celebrated as the heart of the home and can significantly influence your property’s market appeal. Upgrading to a modern, practical kitchen setup can considerably increase your home’s attractiveness.

Consider improvements like updating kitchen appliances, installing quality countertop materials like granite or quartz, and redesigning the kitchen layout to increase space, provided it aligns with your budget. In order to do this most effectively, it can be helpful to visit a showroom specialising in luxury kitchen design. By doing this you can view a variety of fixtures, fittings and finishes which might appeal to you and immediately see how they’ll look, as well as understand the costs associated with each revision you want to make during the renovation project. You might also want to explore around for more ideas and inspiration, tailored to creating beautiful and functional kitchen spaces, for personalised and luxury home design options.

Bathroom Modifications

The other ideal location for upgrades that raise the value of a house is in the bathroom. Visiting a showroom specialising in luxury bathroom design in Hampshire or another location more suitable can be a great way to get inspiration for changes you want to make, whether this is a total overhaul or just some minor touch-ups. Even minor revisions like adding new fixtures, painting, or changing the flooring can improve the space massively and greatly contribute to increased property value.

For a larger renovation, if you add an en-suite to the master bedroom or build an additional bathroom in a house that used to have just one, the return can be significant.

Adding Living Space

Increasing your living space with an attic conversion, basement refinishing, or room additions makes your home much more attractive to potential buyers. Additional living space is often an important need for many households. 

Nevertheless, you have to remember that each of these projects might turn out challenging in terms of finances and duration. Be mindful of their ROI to make sure they’re worth the time.

Outdoor Improvements

Curb appeal counts and is as much of a concern as having a functional outdoor area. Landscaping renovations, including a new deck or patio, a barbeque area, or even an outdoor kitchen, can make your home more appealing to prospective buyers and boost its sale value.

Rethinking Low-Value Renovation Projects

Home renovations can significantly improve your property’s marketability and value, but it’s vital to know which projects offer a sound return on investment. Certain upgrades may not only lack in adding value but could inadvertently lower your home’s market appeal.

Here’s a list of renovation projects that are often considered not worth the investment:

Overly Personalized Renovations

While adding your personal touches to a property, including flashes of bright paint in the kitchen or even a custom-built backyard, may feel great, these options often contradict the average buyer’s taste. 

Some renovations based largely on your taste might devalue the property because they narrow down the options to all interested parties. Home remodels should find a balance between custom features and marketability.

Luxury Upgrades

While the allure of high-end renovations, such as professional-grade appliances and marble flooring, is undeniable, their financial return can be disappointing in homes not situated within luxury markets. 

These premium features are typically sought after in upscale properties, and buyers in more moderately priced markets may not see the value in paying a premium for the upgrades. It’s important to evaluate whether these luxury renovations align with the expectations and budget constraints of your target market.

Swimming Pools

Adding a swimming pool to your property might appear like a good enhancement, but its impact on home value can be less than anticipated. Beyond the initial installation costs, pools require ongoing maintenance expenses, and for potential buyers, especially those with young families, a pool might raise safety concerns. 

This perspective can make pools less attractive to a segment of the market, potentially limiting their appeal and added value.

Garage Conversions

Although it may be tempting to convert a garage into additional living space, many buyers want the convenience of having an indoor parking area. This tendency is particularly the case in areas vulnerable to severe weather, and a garage can protect vehicles from the elements.

Start a Home Renovation Project That Will Pay Off Long-Term

Your home represents a major investment, and the desire to tailor it to your preferences while increasing its comfort level is understandable. However, the key to successful renovations is finding a happy medium between personal satisfaction and long-term value. 

With the right approach and guidance, your renovation project can significantly contribute to your home’s worth and ensure it’s a good investment over time.

 

About the Author 

Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper.