I was hit with the real estate bug in 2019 and the idea of a fixer upper immediately drew my attention. I am not sure if it was the idea of curating my own space or the fact that I have a mild HGTV obsession, but either way it really got me thinking about real estate as an investment. And while home renovations might seem like a hassle, they can actually be an investment in your home!
I started jotting notes on what I found during my personal real estate hunting journey, and I wanted to share these on the blog because as we know Miami is a hot market for home buying. Before you get all Chip and Joanna Gaines on your home, it is important to look at the long-term benefits of home improvement projects and figure out how they can add value to your home both now and in the future. Whether you’re looking for ways to increase the resale value of your property or simply want to make improvements that will make living in your home more comfortable, here are some tips for viewing home renovations as an investment.
Consider Your Return On Investment
Before beginning any major renovation project, it is essential to consider what kind of return on investment (ROI) you could expect from making this upgrade. Some projects have higher ROIs than others and can help recoup your investment faster. For example, kitchen and bathroom renovations often have high ROIs because they tend to be the most desirable features that homebuyers look for.
Using the Right Materials
When you choose the materials for your renovation project, make sure that they are energy-efficient and of high quality. Quality materials will last longer and can add value to your home due to their durability. Using energy efficient replacement windows is a great option if you’re looking to upgrade the energy efficiency of your home while also making an investment in its future value. Choosing energy-efficient windows will reduce energy costs over time as well as improve the resale value of your property.
Choosing Appropriate Projects
When deciding on a home renovation project, it is important to think about how the project will increase the value of your property. Some projects may be more costly than others, but they can help make the home more marketable in the long run. For example, adding a deck or patio to an existing structure can significantly add to its curb appeal and resale value. Additionally, installing landscaping or new fencing can also be beneficial for increasing the value of your home.
Making Smart Renovations
Making smart renovations is key when it comes to viewing home improvements as an investment. If you plan on selling your home one day, then making renovations that are up-to-date with modern trends is important. For instance, if your kitchen is outdated, then making it more modern by replacing cabinets and countertops with newer materials can help boost the resale value of your home. Additionally, painting walls in neutral colors like grays or beiges can also give a room a more updated look.
Upgrading Your Home’s Systems
Another way to view home renovations as an investment is to upgrade the systems of your home that are necessary for its function. As my dad used say, function over fashion!
Replacing the roofing material or upgrading plumbing fixtures can both be beneficial when you want to add value to your property. Additionally, installing solar panels or energy efficient HVAC systems can also help increase the resale value of your home due to their long-term savings and environmental benefits.
Hiring Professional Contractors
When it comes to making sure that your home renovations are an investment, it is important to hire professional contractors who can help you complete the project. Sometimes those HGTV dreams of rocking a hard hat are shattered when you realize you have no clue how to fix wiring for your electricity!
Professional contractors have the experience and skills necessary to ensure that a job is done properly and up to code. Additionally, they can also provide advice on materials and techniques for ensuring that the quality of your renovation project meets your standards.
Staging Your Home For Sale
Finally, when you’re ready to sell your home, it is important to take the time to stage it so that potential buyers can envision themselves living there. Investing in staging services or hiring a professional stager can help ensure that your home looks its best and gives off the right impressions for potential buyers. Additionally, staged homes often have higher offers than unstaged homes due to their increased appeal.
Overall, viewing home renovations as an investment can help ensure that you are making smart decisions when improving your property. Choosing the right projects with quality materials and up-to-date trends can help increase the resale value of your home while also making it more comfortable for current occupants. Investing in energy efficient systems like solar panels or HVAC systems can also help reduce costs over time—while simultaneously increasing the property’s value.
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