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ROI on Renovations: How Smart Upgrades Impact Home Sale Prices

By Michael Alladawi

Starting a home renovation project can be a great way to inject your own style and personality into the space you live in. When doing a DIY project, renovations can also be a great way to learn new skills while helping you to save a bit of money on various improvements around the house.

However, when it comes to making smart choices about the types of renovation projects you take on, it’s important to have a good understanding of the potential ROI (Return on Investment) you can expect to get. This is especially the case if you’re looking to add long-term value to your home while minimizing your spending to only changes that will make a significant impact.


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The Importance of Understanding Renovation ROI

Before you start diving headfirst into a new renovation project, it’s important to understand how to calculate the potential ROI. This represents the total profit you’re able to gain from home improvements in relation to all of the costs you put into a project.

This ROI can be calculated by finding out how your home’s value differs when calculating it before and after a project is completed. Knowing this factor will help you to avoid moving forward on a renovation project simply out of personal preference, and instead consider how it could benefit you if you decide to sell the home in the future.

Factors That Can Affect ROI

Not all renovations are created equal, and there can be a wide range of factors that contribute to whether or not you see a positive ROI. These factors can include:

Property Location

The real estate market is highly dynamic, and the local area will dictate a property’s value and the importance of certain renovations to homeowners in many ways.

In certain areas, higher-end kitchen remodels may be needed to keep up with comparative listings, while in other places, energy-efficient appliances or upgrades may be more needed. By comparing your home with other properties in the area, you’ll be able to better understand the preferences of the target market.

Cost vs. Sales Prices

Of course, a big part of ensuring positive ROI in your home renovation project is managing your spending. Depending on the suggested sell price for your home, you may or may not have funds left to invest in costly repairs without taking a financial hit.

Quality of Work

The increased value your home receives after a renovation project will also depend on how well the project was managed. If you chose to handle all renovations yourself, and there were areas of the renovation that could have been done a bit better, there’s a good chance you’ll see less of a return on your investment than if a professional contractor handled the project.

Top Renovation Ideas With Good Returns on Investment

If you’re looking for inspiration on certain home renovation ideas that typically provide a higher ROI, below are some options you can consider:

Kitchen Remodel

Kitchens are a highly functional room in the house that almost everyone uses regularly. Because of this, making sure your home has a modern, optimal layout can be essential when trying to receive maximum value for your property when you sell it.

The great thing is that you can make a wide range of improvements that have a strong ROI. These upgrades include refacing cabinets, installing modern countertops, or updating major appliances to energy-efficient and stainless steel models.

Bathroom Remodel

Another major selling point for modern homes is having a great-looking bathroom. Many older homes have relatively basic or outdated bathroom layouts with older-model fixtures. Bathroom remodels can be another great way to completely change a small room in the house and see a big return in terms of increased value.

Curb Appeal Enhancements

When getting ready to market and sell a property, the first impression you give off can be a major deciding factor for home buyers.

Because of this, you may want to consider investing in certain exterior improvements of the property to give it better curb appeal. This could be done in a number of different ways, such as maintaining the lawn and planting flower beds, upgrading the front walkway, or installing a gazebo.

Energy Efficiency Upgrades

Most modern home buyers are looking for properties that will help them live more sustainably. Energy-efficient homes are a great way to save significant energy consumption costs while assisting individuals to reduce their carbon footprint.

Evaluating your property and looking for ways to upgrade HVAC systems, lighting, solar panels, or other energy-efficient add-ons can be a great way to attract additional buyers to your property.

When to Consider Selling a House As-Is

Although it may seem that all types of renovations can improve a home’s value, not all projects may be worth taking on before selling your home. In a seller’s market where demand is high, you may not need to consider making too many improvements in your home and could simply sell the house as-is.

Some properties also have certain architectural details or historical significance that are highly sought after on the market. In these situations, home buyers may prefer to keep the home in as much of its original state as possible. Before committing to a certain type of renovation, it can be wise to speak with a real estate professional who can provide practical advice on where and how to prioritize your renovation projects.


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Make the Right Choices When Renovating Your Home

Choosing to renovate your home can be a great investment in the long-term value of your home while letting you enjoy updated living spaces and improved functionality on the property. However, it’s important to make sure you’re making the right investments when it’s time to start a new renovation project.

By taking the time to understand the potential ROI of your renovation projects, you’ll make sure you’re making smarter decisions about the look and feel of your home while helping to improve the value of your property over time.


Michael Alladawi

Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive Real Estate to share his industry knowledge and help homeowners maximize their profits when selling their homes. Michael’s passion for his work is as big as his desire to create lasting partnerships. For Michael, it all comes down to how much value one offers, both in business and life relationships.

Maximizing Your Home’s Value: Top Interior Design Secrets for Resale Success

By Michael Alladawi

If you want to maximize your home’s value, a well-designed interior can make a huge difference. Whether you’re planning to sell or just increase its worth for the future, implementing key design strategies can pay off big time.

But before you dive into making changes, it’s crucial to understand what truly adds value. Not every design choice will significantly impact resale value, so it’s essential to focus on the areas potential buyers are interested in.

Use Energy-Saving Fixtures

As the issue of environmental concern grows and utility costs escalate, many buyers now consider energy efficiency as they look for a new home. By adding power-efficient features, you will be able to satisfy this need and improve your house’s value greatly.

There are many energy-saving appliances now available. Take LED lighting, for instance. The average energy saving through these devices has been noted as being up to 75% less than what amount is needed in standard incandescent lamps, and their life is much longer.

Apart from cost saving, these characteristics can also be a healthier and more environmentally balanced way of living. Smart thermostats, leak detection systems, and smart home systems often attract new buyers and are a good way to increase your home’s value.

Undertake a Kitchen Remodel Project

The kitchen is commonly referred to as the heart of any home. It is the place where food is cooked, and families sit together to enjoy each other’s company. This could make a modern kitchen a great selling feature.

Some of the most common updates that will make your kitchen look much better without breaking the beak include modern appliances, countertops, and cabinets. One of the most common improvements is stainless steel appliances, as they look great and last seemingly forever.


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Granite countertops or quartz countertops are also popular due to their high-end look and durability for regular usage. Adding cabinets to your kitchen also gives you more room for storage and keeps things organized.

But, when you do a kitchen remodel, the aesthetics must be balanced with practicality. If you have a kitchen with a beautiful but less-than-functional design, prospective buyers will be turned away. You can also consider introducing a practical layout, a generous amount of counter space, and easy-to-clean surfaces.

Replace Outdated Carpets and Rugs

Firstly, updating your rugs and carpets inside the house can make a great deal of difference in its overall aesthetics. For example, hardwood floors are what many homeowners turn to because they have a timeless appeal and a better wear and tear rate. They are easy to maintain, flexible, and can fit in nearly any interior design idea you might have.

Another great option is tile, especially when applied to rooms like the kitchen or in a bathroom remodel since they require water resistance. Tiles can also be a great decor solution, available in many colors, patterns, and textures.

The investment in new flooring may appear to be a larger expense initially. However, taking into account the possible return on investment, it can pay dividends in the long term, considering you’ll be less likely to need a flooring remodel in the future as well.

Remove and Restyle Outdated Popcorn Ceilings

Many homebuyers consider popcorn ceilings – which used to be a norm in homes constructed from the 1950s to the 1980s – outdated. From a design standpoint, popcorn ceilings can darken and date the look of any room they are found in. Plus, these textured ceiling coverings made with similarly textured materials may contain asbestos, which is now illegal to produce since 1977.

Removing popcorn ceilings and adding a more contemporary finish make your home look newer. The process includes removing the old texture, fixing any issues with the original surface if needed, and applying a new finish headboard or even just smooth plaster.

Redesigning your ceilings not only adds fresh style to your house but also allows you to improve lighting and insulation. Smooth surfaces reflect light better, which creates a brighter and more spacious room. In the meantime, if you replace insulation during repairs and remodeling, you may likely improve energy efficiency in the home.


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Maximize Practicality with Added Storage and Closet Spaces

Ample storage space is one thing that potential buyers may seek in a home. Insufficient storage can create the impression of a too-cluttered or small home, which is often a no for many buyers.

There are numerous creative designs for storage or closet spaces in underutilized areas. You can, for example, convert the area under staircases into a small closet or put shelves or custom cabinets in hallways or alcoves. For bedrooms, there could be a walk-in closet or bed frames with storage compartments.

These features not only provide you with additional space for storage in your home but also improve usability. The benefits of a well-organized home cannot be overemphasized since this type of environment attracts potential buyers who are willing to pay more in order to live in a more practical space.

Use Strategic Paint Choices

One of the simplest ways to transform and modernize a space is by giving it a fresh coat of paint. A relatively cheap renovation could help you greatly improve the attractiveness of your residence.

In the choice of paint colors, it is wise to go with neutral hues. Even though bold and bright colors can show your style, they may not be attractive to many buyers. Whites, greys, and beiges attract the largest spectrum of users – these colors are easier to match up with interior styles and furniture colors. They also create an illusion of larger and brighter spaces, which is more welcoming.

But neutral does not have to be boring. Make your interiors interesting using different shades and textures within the same color family. Additionally, saturation of the paint should also be considered. The most commonly used are satin and semi-gloss finishes since these alternatives are easier to maintain and last longer.

Get the Most Value Out of Your Renovations

Renovating your home can be exciting, but you shouldn’t forget that not all renovations will increase the value of the house. When planning a renovation, you should consider current trends while also looking at your budget. This could protect you from overspending on unnecessary improvements and also help you to identify which renovation techniques will give you the best return on investment.


MEET MICHAEL ALLADAWI

Michael Alladawi, CEO & Founder of Revive Real Estate, is a Southern California real estate veteran with a proven track record as a builder, investor, and respected home flipper. Michael created Revive Real Estate to share his industry knowledge and help homeowners maximize their profits when selling their homes. Michael’s passion for his work is as big as his desire to create lasting partnerships. For Michael, it all comes down to how much value one offers, both in business and life relationships.