Residential property for homeowners is probably their biggest investment. All big investments need to be carefully researched and handled to bring in profitable end results and housing properties are no different. Homeowners interested in renovations for potential payoffs should have these five upgrades in mind when choosing housing projects.
Kitchen: Of all the places in your house to invest in, putting money into the kitchen is probably the safest bet for a payoff, about 80 percent of their cost. A whole renovation could cost homeowners up to $5000 to $8000 for high-end counter finish with new sink and faucet. For smaller changes that cost less, try upgrading counters, sinks, plumbing, lighting fixtures and appliances.
Energy Upgrades: Although expensive, energy-saving amenities is definitely an attraction for homebuyers. Just for new windows can pay back homeowners 77 percent of the cost project. Energy upgrades are tax deductible with special programs that the government would even foot half the cost. It does take time to recoup on some energy upgrades so make sure you will be living in the house until the cost gets covered.
Floors: Upgrading your floors can make a small room bigger and give an older house a newer feel. By replacing dated, scuffled floors can homeowners a figure on a payback as high as 75 percent. Floor renovation costs depends on the cost of materials and type of floors homeowners desire. The average price for floor renovations by professionals is about $1500, including the material and labor costs.
Bathrooms: Because most houses have bathrooms and plumbing infrastructures already built in, a minor bathroom remodel of replacing a dated, small tub with a spacious shower can help homeowners recapture about 75 percent of the renovation cost. A big shower can count as a full bath, while adding a decent-size shower to a half-bath makes it a whole bath when it comes time to sell your property.
Closets: Updating small closets is another way to raise property value, although putting an exact pay back percentage is hard to say. But most homeowners prefer roomy, organized closets so closet renovations wouldn’t be a wasteful investment. Depending on the material used and complexity of the design, a walk-in master closet can cost $500 to $2500 or more. Wood is the most expensive, but delivers the best return on investment.