22 Dec Which Arizona Home Projects You Should Skip, and Which Ones Add Value
Home projects can be fun and make it more enjoyable to live in your home, and if they’re done right, they add value to your property. But not all projects will increase your home’s value. Here’s a look at a few of the updates that will actually boost your home’s sale price and which ones you’re better off skipping.
Home Projects That Add Value
One of the best tools you can use to determine if a home project is worth doing is ROI (return on investment). This number takes the amount of money you spent on a project and compares it to the value it’s added to your home. A 100% ROI means that you will see every penny spent on the project back if you were to sell your home.
Most home projects hover around 60% ROI, with some being higher and some lower. Here’s a look at some of the home updates that will give you the highest bang for your buck.
- Minor kitchen remodels – It’s long been said that kitchens sell houses, so it makes sense to spend some money upgrading your kitchen. Minor kitchen renovations usually see between a 60 and 80% ROI. But be careful not to go overboard on upgrades. Spending $70,000 to remodel a home that’s only worth $150,000 isn’t a good idea.
- Finish the basement – Any project that adds extra square footage to your home is one worth completing. Finishing the basement often adds extra bedrooms, which is a huge plus when selling your home. This project is the closest most homeowners will get to 100% ROI.
- Upgrade appliances – Mismatched or outdated appliances can have a negative effect on your home’s value. Give them an upgrade so you can enjoy better energy efficiency, and buyers will appreciate it too!
Home Projects To Skip
There’s a handful of projects that have such a low ROI that you shouldn’t complete them unless it’s solely to enjoy it yourself. Some will even have a negative impact on your home’s value. Here’s a look at what home updates you’re better off skipping:
- Luxury or highly customized upgrades – Adding a home theater or steam room might be a huge bonus for you, but buyers probably won’t want to pay for it. Try to keep your home upgrades on the same level as your neighbors. You don’t want to over-upgrade your house for the neighborhood.
- Converting the garage – If you need more living space and can’t add on to your house, it might be tempting to convert the garage to extra living space. This might work for your family, but keep in mind that most buyers will want the garage. A converted garage can work against you when it comes time to sell.
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