3 Renovations You Can Do to Increase Your Net Proceeds

by Karla Lopez

When it comes to house renovations, there is the reality that the renovation cost won't be 100% recouped. With that said, most people have a tough time deciding if their houses should be renovated with the risk of not receiving a total return on investment. This leads homeowners to wanting the best value out of every dollar they spend on renovations.

One thing a homeowner should always consider is the cost versus the value. In reselling, not every renovation adds more value to the house. Since some renovations can even hurt the final price, it is best to think about the value when reselling and how you'll get the most out of your money.

That said, here are some renovations you can do to increase your net proceeds.

Upgrading the Kitchen

The kitchen is one of the essential parts of the house and is sometimes referred to as the heart of the home. Also, your kitchen is your first chance of making a great impression on your potential buyers. 

However, before you go ahead and make a deluxe kitchen straight from a 5-star restaurant, you may need to consider the value of your whole house and the other houses for sale in your neighborhood. It would help if you always remembered that the cost should be in line with the rest of the house's cost when renovating your kitchen. 

When your kitchen is way more pricey than the rest of the house and the neighbor's, the chances are that the buyers won’t be interested. As a consumer, buyers will opt for a simple kitchen that goes with the rest of the house rather than a house with an elegant kitchen within a simple house.


Landscaping

Your front yard, and even your backyard, can also be your chance to impress your buyers. How you landscape is your key to making an excellent first impression and can even influence your monthly rental rates if you are looking to be a landlord. 

Improvements to your landscaping can increase not only your home value but also your net proceeds.

To improve your curb side appeal, pick several plants and flowers to put on display. You can also put on a custom walkway that leads to your front door if you want to emphasize it.

You can also put a kitchen area in your backyard, complete with a barbecue set and food prep station. 

Many prospective buyers tend to care a lot about the landscape of a house. And since these upgrades are inexpensive, you can add more budget to your landscaping plans to improve the house's value and your net proceeds.

Adding a Bathroom

The next most important thing in a house is its bathroom. If you haven't touched your bathroom for a few years now, it might be outdated and need a significant facelift. If you have a surplus of money from all your previous renovations, you can add another bathroom to your house. 

Creating another bathroom is expensive, but a new bathroom can add a significant amount to your house’s value. Usually the cost for the bathroom can be recouped for at least 80-130%. Rather than adding space for the house, you can convert extra rooms, closet areas, or even the area under the stairs to a bathroom.

The average space for a bathroom is eighteen square feet. A bathroom with a standing area for a shower is thirty square feet on average and an additional five if you want to add a tub. If you also want to save money for the sink and toilet, you can buy them from a home improvement store. 

Takeaway

Renovations are costly and you may not recoup the costs when reselling. Hence, you have to be smart when it comes to choosing which rooms you should renovate. You can also compute the price of your house by adding all the renovations' costs and the price range you desire. Then, calculate how much will be left after deducting the taxes and other costs with a home value calculator online. Just remember, do not renovate rooms that don't absolutely need maintenance or are still presentable. Renovating rooms unnecessarily will make you lose value and potential buyers.

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