Most people get their house refurbished to increase its value when they have to sell it. The concern is whether it is worth it to refurbish your house and what kind of renovating projects you should invest in. When you look around your houses, you will find endless areas to renovate.
The renovation list will never end. If you strictly follow this list, you will end up spending a lot of money. Since you own your house, you will likely fix all issues, but do you think it makes sense? Before you throw money at remodeling your house, you should ask yourself if it is going to give you many benefits.
It isn’t very important investing money if there is very little or zero return. Some kinds of improvement become a necessity whether or not you want to move out. For instance, if the terrace flooring is damaged and water seeps through it, causing mildew ceiling, you will have to get it repaired.
However, there are some renovating projects that you invest in to attract the buyer, for instance, changing faucets in the kitchen and bathroom, and installing new cabinets. Before you get such projects off the ground, you should carefully analyze if it is going to give you a return.
Remodeling projects that are worthwhile
You can come up with areas for improvement, but not all of them will give you many benefits. The best approach to deciding if you should invest in a particular home renovation project is finding the expected return on investment.
To calculate the return on investment, you will have to divide the value that it adds to your house by how much it costs you. If your purpose is moving out, you will likely emphasize the return on investment. However, sometimes renovation is done to increase your comfort and make the look of your house more stylish and up to date.
This happens when you intend to stay at the same house. In such a situation, you cannot just make a decision based on the return you get from the investment. You have to consider how it affects the comfort of your life.
There are multiple factors that you need to take into account at the time of throwing money at such projects. Here are some projects that make a more innovative move at the time of remodeling your house:
Add more space
Adding more space will increase the value of your house drastically, and hence you will likely get an attractive return on investment.
Adding more space includes:
- Adding bedroom
- Expanding the kitchen area
- Making the bathroom more spacious
- Utilizing the basement
You cannot sell your house for more than the market value, but you can sell it around it as the buyer will also see space utilization for more comfort.
Doing up the kitchen and bathroom
Doing up your kitchen and bathroom makes sense if you are planning to sell your house to get attractive market value. Nowadays, buyers make a decision of buying a home based on the condition of the kitchen and bathroom.
If your kitchen and bathroom look very traditional, it will deter buyers from buying your house. It will be best if you keep them updated. You will likely get a better return if you have a spacious kitchen and bathroom. When they are spacious, you will be able to install cabinets to keep everything organized.
Apart from adding space to the kitchen and bathroom, it will help if you also look at other things like faucets and other amenities. The water must flow from taps properly. Traditional faucets will affect their look, and the buyer will likely be double mind.
Integrate advanced technology
Revamping the kitchen and bathroom can offer you a good return, but it does not mean that other things are not important at all. Another thing that can influence the buying decision of the buyer is the use of advanced technology.
Data suggests that now buyers prefer houses equipped with smart technology. Therefore, investing in technology will give some benefits. This will undoubtedly help you get better prices for your house. Here are some smart tech upgrades you can look for:
- Smart thermostats
- Integrated speakers
- Smart light switches
- Advanced Bluetooth system for multiple functions
- Top-class security system
- Avant-garde locks
- Assistants like Alexa and Amazon Echo
You cannot afford various technological advances because you are still in the early stage of remodeling. Still, you can focus on technological gadgets that help improve your lifestyle.
Funding your home improvement projects
Undoubtedly, you need a lot of money to renovate the kitchen and bathroom or integrate avant-garde technology into your house. You must have sufficient funds to carry out a home renovation project. Otherwise, you will likely consider funding it.
If you need money just to fill the gap, nonguarantor loans will be the best bet. You can use a credit card as well but do not forget about the lump sum settlement of the balance. If you need significant funding sources, you should take out installment loans.
In case of a bad credit rating, consider your affordability to pay off the total cost of the loan. Remember that the loan will be added to the cost of home renovation, so it must be taken into account to calculate the return. If it does not yield an attractive return, you should have a second opinion.
The bottom line
If you are looking to refurbish your house, you should examine the return on the cost you incur. Make sure you take up those projects that add value to your home, for instance, adding more space.
Do not forget to consider the funding sources. Whether it is small or big, it can have a drastic impact on your return. If you borrow money, it can increase the cost because of interest. Further, you should ask yourself the purpose of renovating because the type of renovation project you will take up depends on it.