Do Home Renovations Add Value?

June 30, 2020 9:03 am

a photo of a beautiful kitchen renovationHome renovations allow you to create the home of your dreams. Do you need some extra space? Is your kitchen dated? A home reno loan might be perfect for you! If you are purchasing a home and are interested in a neighborhood where most homes are priced higher than your budget allows, maybe consider purchasing a fixer-upper in that neighborhood — then, plan to use home renovations to make the home feel more like your own. The home would likely have a lower price tag than others that have been recently remodeled, and you would be able to renovate the home to suit your taste. Plus, if you sold the home once the renovations were done, you may be able to list the home at a higher price than you paid.

While there is no guarantee that any renovation project will affect resale value, certain home improvements have been shown to provide a higher financial return than others. When planning renovations, keep this in mind: To add the most value to your home, changes should conform with the neighborhood and flow with the rest of the house.

Outdoor improvements and renovations to kitchens, bathrooms, roofs and windows generally provide the most financial benefit. While financial benefit is an important factor in deciding on home renovations, it’s also important to consider the benefit these renovations will have on your lifestyle. If converting an extra room into a home theater is a goal of yours, the renovation may be worth it for the happiness it will bring.

To learn more about home renovation values in your area, click here.

If you are interested in purchasing a home that will need renovations or you’re interested in making renovations to your current home, Fairway Independent Mortgage Corporation has financing programs that will help you combine your renovation costs with your home purchase loan or refinance. Call me today to learn more.

Click here to download a guide about home renovations and financing.