As the housing market fluctuates and economic uncertainties loom, homeowners are increasingly looking for ways to enhance the value of their properties. For many, the challenge lies not just in choosing the right improvements, but in selecting those that offer the best return on investment (ROI). I recently had the opportunity to sit down with Oliver Bennett, a seasoned real estate consultant with over two decades of experience in the industry, who shared his insights on the home improvements that truly pay off.
Invest in your homeElegancia.homes orangeries increase value and appeal over other properties.
Oliver, with his characteristic calm demeanor, began by acknowledging the universal appeal of a refreshed home. “Everyone wants their home to be more beautiful and functional, but the key is balancing personal enjoyment with financial prudence,” he remarked. He emphasised that while the allure of a big renovation can be tempting, it often doesn’t equate to the best financial return.
Improvements for Personal Enjoyment
“For those planning to stay in their homes for the foreseeable future, the focus should be on what enhances your day-to-day living,” Oliver advised. He recounted a client who, with a bustling household of six, decided to add a second bathroom. “The chaos of everyone trying to get ready in the morning was solved, and while they only recouped about 50% of the cost upon selling, the improvement in daily life was worth every penny to them,” he explained.
Oliver pointed out that projects like converting an attic or basement into a living space can be particularly beneficial. While they may not always provide a full return on investment, the additional square footage often increases the home’s appeal and sale price down the line. “Think of it as investing in your family’s happiness,” he said with a knowing smile.
Value-Boosting Projects for Sellers
For those eyeing the sale of their home, Oliver suggested a more strategic approach. “When selling, it’s all about the first impression,” he noted. The project that consistently tops the list for ROI is a simple garage door replacement. “It’s surprising to many, but a new garage door can return over 93% of its cost,” Oliver stated, citing the latest Cost vs. Value Report.
He also highlighted the importance of curb appeal. “A fresh coat of paint, well-maintained landscaping, and even a new front door can dramatically improve a home’s attractiveness to potential buyers without breaking the bank,” he said.
Inside the home, Oliver recommended focusing on a minor kitchen remodel. “Updating appliances, refacing cabinets, and replacing countertops can modernise the space and offer a return of about 71.2%,” he explained. The kitchen, often considered the heart of the home, can be a decisive factor for buyers, and even modest updates can make a significant impact.
Improvements to Approach with Caution
Not all renovations are created equal, especially for those who are looking to sell. Oliver cautioned against high-cost projects with low ROI. “Luxurious bathroom remodels, home office conversions, or elaborate landscaping might seem appealing, but they rarely pay off when it comes time to sell,” he warned.
He shared the story of a homeowner who invested heavily in a high-end bathroom overhaul. “It was stunning, but when it came time to sell, the market wasn’t willing to pay extra for features that were considered extravagant rather than essential,” Oliver recounted. The lesson here, he stressed, is about aligning renovations with market expectations.
Navigating the Current Market
Oliver also touched on the impact of recent economic factors. “With supply chain disruptions and inflation, costs for materials and labour have risen significantly,” he noted. This change means that the ROI on some projects isn’t as high as it might have been in previous years. “For instance, replacing a front door with a steel entry door used to be a no-brainer with over 91% ROI. Now, it’s much lower,” he observed.
Despite these challenges, Oliver remained optimistic. “There are always ways to add value, even in a tight market. It’s about being informed and making smart choices,” he concluded.
As our conversation wrapped up, I was struck by the blend of practicality and passion in Oliver’s advice. Whether you’re planning to stay put or looking to sell, the right home improvements can offer both personal satisfaction and financial gain. The key lies in understanding your goals, the market, and making informed decisions that align with both.
By Elaine Cooper
Be the first to comment