A home improvement strategy needs to put various factors into consideration since a majority of the people prioritizes different things when they are considering buying or when evaluating a house. Thus the necessary items like the kitchen, desk furniture, bathroom, lighting, walls, and floors might have a more increase in the value of a home than furniture. For example, corner desks for home are essential elements in a home, but the value attached to them by different people will greatly vary with some almost considering them as insignificant.

To appreciate the value added to a home; it is not always that you have to sell it to realize the financial benefits. The added comfort and convenience associated with a renovation is also a quantifiable benefit although the majority of the value will be realized on the sale or lease out. Adding a pool on your home compound adds value as well as offers a recreational facility that will provide unquantifiable benefit to you.

A renovation might involve:

Bringing something up that was never there before like building concrete fence- this will add the most value in the home since there is a high probability you will put up something modern and the one that is likely trending in the market

Improving the design and nature of an existing system; for example repainting or painting the walls with fire resistant paints – this adds a moderate value to the home since the already existing design is either outdated or obsolete; redoing it is the best option.

Replacing an already existing system, for example, changing from wooden floor to tiles – this add the lowest value to a home since you have to take into consideration the value of the items removed while determining the value. Thus, the net worth becomes the new increase in value.

• Irrespective of the renovation strategy adopted; it is worth noting that there are various returns on investment attached to different systems in a home setup.

For example,...

• A kitchen renovation adds 85% to the amount spent

Windows replacement adds approximately 80% to amount used

Basement remodels return at a rate of about 79%

New fences can pay back to the rate of 100% on the value of investment

Since renovations are an investment and we evaluate the viability of the project depending on the ROI it gives, you have to be careful not to engage in decreasing marginal return projects.

For example adding a floor that is decorated with ivory might add value to the home but to a certain limit beyond which majority of the buyers will not be willing to pay. To overcome these avoid investing a lot on luxurious items on a home since different people have different tastes and preferences.

The best way to maximize your home renovation is trying to convert a section of the home compound to an income generating activity. This can be through rental or sale of the produce. Among the viable renovation exercises that can be turned into income generating activities are renting out the basement, planting commercial crops in the garden, rearing livestock and pets for sale.

Conclusion

In most of the cases, an investment in a home renovation exercise pays back 2.5 – 4 times the value of money invested. Small projects seem to return well on investment compared to big projects. This is not to mean that large projects do not add value to the home at the required rate, but majorities of the people tend to under evaluate something when converting it to monetary value.

To ensure that you don’t lose out, engage a real estate agent or a home inspector in every home selling exercise so that even the invisible renovations like those relating to wiring can be captured and quantified properly.