Which home improvements give the best payback?
Home improvements can increase the market value of your property. Which improvements bring the best return on investment? Read on…
Heritage Lake Waterfront Home
If you’re thinking about remodeling your kitchen, or finishing your basement, you probably want to get your investment back when you sell your West Central Indiana home. But when it comes to payback value of home improvements, some are definitely more profitable than others. As a general rule, kitchen and bathroom projects usually get a nice return on investment, typically 90% or more.Things like adding rooms or finishing basements tend to pay back the least. Finishing a basement usually returns less than 50%, so it’s not a project likely to show profit at selling time.
There are a number of factors that go into determining how well a project will pay back. Payback value depends a lot on the current market conditions in your area. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market. Call Darrel or Teresa at Brouhard Realtors for an update on market conditions at Heritage lake and throughout the West Central Indiana area including Danville, Coatesville, Clayton, and Bainbridge.
The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won’t get your money back. But if you’re smart about what you do, you can make money. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment. Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood.
Another reason to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment. However, this is ill-advised if you lack the proper skills. There is nothing worse than poor workmanship and if work is not done correctly and up to code, the value could be lost in the home inspection. It is important to work with proven contractors.
If your home is an Indiana lakefront property, the view is everything! Trim some trees and clean all the windows for an eye-catching, unobstructed view of the lake! Ensure all curtains, draperies, and blinds are open to enhance lake views on entry of the home. Be sure access to the lake and shoreline is as seemless as possible. With waterfront homes at Heritage Lake, it might make sense to get some ideas from Darrel Brouhard before you list. Brouhard Realtors has specialized in the sale of Indiana waterfront homes and lake access properties for 28 years and they have a great handle on what updates make sense when selling your Indiana lakehouse. Darrel also has a list of local contractors and handy men who have done work in the area for years. He will gladly offer suggestions before you list your property, just contact him on the form below.
The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:
- Kitchen remodeling – 90%
- Add a bathroom – 90%
- Bathroom remodeling – 80%
- Install central heating – 90%
- Install central air – 75%
- Add a deck – 70%
- Replace windows – 70%
- Add a room – 55%
- Build a pool – 45%
- Finish a basement – 40%
As you can see, it is important to put your money into the right project to enhance not only your Heritage Lake home’s marketability, but also to increase your net at the time of sale. Don’t leave these important decisions up to what you would like to see. Call your West Central Indiana real estate experts at Brouhard Realtors to be sure you put your money where it can grow into real value in your home. Contact the Brouhards today!