Every homeowner knows how important it is to build equity. Over the years, home appreciation results in property values increasing. Research shows that owners sell their homes for a median of 29 percent more than they purchased them for. Of course, how much you’re able to resell your home for is dependent on a number of factors, including market conditions and how long you hold on to the property for.
Another factor is whether you choose to renovate your home in Santa Fe, NM. If you’re considering questions like, “Does a kitchen add value to a house?” it’s time to read on to find out our leading tips on maximizing your property’s resale price.
The best bang for your buck on renovations
If you’re thinking of home remodeling, you may be wondering where it’s best to spend your money. Ideally, you want a project you can enjoy now while also helping boost your home’s value when it comes time to sell.
The two places in a home that have the best return on investment are the living room and the kitchen. Living room updates bring back 93 percent of investment, and kitchen remodels return 84 percent of investment.
Increase curb appeal
Curb appeal—that first impression potential buyers have of a house when they drive up—is important when selling a home. If you’re considering an outdoor improvement project like replacing your home’s siding or adding a deck, know that it will pay off when you put it on the market.
Replacing the siding typically has a return on investment (ROI) of 76 percent. If you add a manufactured stone veneer, this has an excellent payoff, with 95 percent ROI.
Putting on an addition
The biggest renovations are those that add interior space to a home. For those with growing families, adding on to a home may seem like an attractive idea. However, this is a pricy proposition—adding a bathroom has an average cost of $48,000.
On the other hand, that same project could also add $29,000 to your home’s value. This is an ROI of 60 percent. This makes the cost easier to swallow—you get to enjoy the new space for years to come, and rest assured it will help your property sell for more down the road.
There are plenty of other, more modest options for increasing home value as well. All of the following can help boost resale value:
- Adding energy-efficient lighting
- Updating security systems
- Replacing appliances
- Adding technology like smart lighting systems and fire detectors
We hope this guide to how to add value to a home in Santa Fe, NM has proven helpful. Apple Construction LLC has been serving area clients since 2015. We specialize in new construction, remodels, additions, design consultations and planning and so much more!
We’re a locally owned and operated business with ties to the Chamber of Commerce and the Better Business Bureau. The next time you’re thinking of updating your home, give us a call to arrange a consultation. We look forward to working with you!