When considering home improvements, many homeowners find themselves asking, “Which renovations will really pay off?” To shed some light on this topic, I sat down with Melissa Thompson, a seasoned real estate consultant and home renovation expert, well-versed in the intricate dance between home improvement and property value. In our insightful conversation, Melissa shared her experiences and professional advice on maximising return on investment (ROI) through strategic home enhancements.
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Melissa began by acknowledging the fluctuating economic landscape, noting how COVID-related supply chain disruptions and inflation have impacted the costs and returns of many home projects. “It’s crucial to understand that not all improvements will recoup their costs,” she explained. “Homeowners should be strategic, especially during times of economic uncertainty.”
One of the first things Melissa advised was to categorise home improvements based on the homeowner’s plans—whether they intend to stay or sell. “If you’re planning to stay put, focus on what makes your life easier and more enjoyable,” she suggested. “But if selling is on the horizon, aim for changes that enhance market appeal.”
Improvements for Current Enjoyment
For families planning to remain in their homes, Melissa recommended projects that improve daily living conditions, even if they don’t promise a high ROI. “Imagine living in a bustling household with one bathroom,” she smiled knowingly. “Adding a second bathroom doesn’t fully return its cost when selling, but the convenience is worth it if you’re staying.”
She emphasised that while adding square footage can enhance family life, it doesn’t always equate to increased resale value. “Transforming unused spaces like attics or basements into living areas might not cover their costs at sale time, but they do add significant functional value,” Melissa said.
Value-Boosting Upgrades for Sellers
For those looking to sell, Melissa pointed out the importance of curb appeal and strategic interior updates. “First impressions are everything,” she asserted. “Replacing your garage door, for instance, is a small change with a big payback, recovering over 93% of its cost. It’s one of the best moves for sellers.”
She also highlighted interior changes that could substantially increase a home’s appeal without breaking the bank. “A minor kitchen remodel is a smart investment,” Melissa advised. “Updating appliances, refacing cabinets, and refreshing countertops can return over 71% of the cost. It’s about making the space look modern and inviting.”
Improvements to Steer Clear Of
Melissa was candid about certain renovations that often fall short on returns. “High-end bathroom remodels or luxury additions can be enticing, but they rarely pay off if you’re gearing up to sell,” she cautioned. “Such projects might only recoup about half of their investment, leaving homeowners at a loss.”
She encouraged homeowners to indulge in luxury updates only if they plan to enjoy them personally for a significant period. “If the joy of a spa-like bathroom is worth the cost to you, go for it. But don’t expect it to boost your home’s sale price in a meaningful way.”
Final Thoughts
Wrapping up our conversation, Melissa reiterated the importance of making informed decisions. “Home improvements can be as personal as they are financial,” she mused. “Know what you want out of your home and what the market wants. Balancing these aspects is the key to making the best choices.”
Her advice resonates as a beacon to homeowners navigating the complex world of renovations. By aligning personal needs with market trends, homeowners can ensure their investments not only enhance their living experience but also optimise their home’s value.
In the end, whether you’re staying or selling, the right improvements can make all the difference. With experts like Melissa Thompson to guide us, making informed choices is within reach—ensuring that every pound spent on home improvement is a step towards maximising value.
Elaine Cooper
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