If you are renovating your house to sell it, you should calculate home value after renovation to know how the cost of your property has changed. Although many people think that if you are renovating the house, it is going to increase the resale value. But it is not the case every time. Some renovations might be good enough to actually impact its price. But some renovations only make up for the amount of use of the house.
You should contact a construction estimating firm to get help regarding your renovation and resale project. They will give you precise estimates of the cost of the renovation and also help you figure out how much the renovation is contributing to the resale cost. If you want precise estimates, you should hire a professional because it is what they do every day. Their estimates are more precise than your own estimates.
Why Renovations Impact Resale Value?
Renovation can increase the recent value of your house, depending on what kind of work you have done in your house. If the renovation is large-scale and makes your house more functional, it can definitely increase its value. Not only the functionality, but also making it more up to the latest trends also increases value because it attracts new buyers. You should not customize too many things in your house; it might not appeal to every buyer because not everyone has the same taste as you.
Factors Affecting Resale Value after Renovation:
A few factors that might influence the price of your house after renovation are:
- Location:
If the location of the house is good, it obviously gives you an edge. But the location is important in another context, which is property demand in the area. In some areas, the demand for property is high for any reason, but if your house is also in that area, you get a better resale value.
- Type of Renovation:
Improvements like installing a new HVAC system or a new roof are a good investment. Because the buyer knows a new system will last longer, they do not have to worry about it for a long time. So it gives your house an advantage.
- Material Quality:
If you use good-quality material in your house, why would a buyer not want that? It is definitely an advantage for both seller and buyer.
How to Calculate Home Value After Renovation?
- Get a professional evaluation of your house, or you can also check the market price of a house similar to yours.
- Cost estimating services can help you estimate the cost of renovation even before starting the project. You can use this estimate to see which renovation cost has to be added to the overall cost of the house.
- There is a concept of return on investment. Like, if you spend a certain amount on a project, how much is going to come back to you?
- Kitchen renovation has 60-80% ROI
- Bathroom project can give 50-70% ROI
You can use these values when calculating the cost; they will add to the overall cost. Multiply the renovation cost by these expected values, and you get an expected estimate.
- After calculating the new value, compare it with the market price to see the accuracy.
Renovations that Add the Most Value:
Different kinds of renovations will pay off differently. Let’s look at some things that really pay off when you calculate home value after renovation. Some examples of these returns are given as follows:
- If your kitchen is upgraded, as in cabinets and lighting, it is a good point.
- In bathrooms, tiles and fixtures are important. If their quality is good, it is good for resale value.
- People, when buying homes, look for energy-efficient systems. If you have them installed in the house, what more can a customer want?
- Make the outdoors beautiful because it will attract a buyer and bring them to your house.
- New paint in the house will do wonders because it is a small thing, but it really changes the appearance entirely.
While you are doing these types of renovations, you can get some help from Interior and Exterior Finishes Estimating Services with your renovation. They will guide you on what areas need renovation, both inside and outside the house. They can also suggest to you new types of finishing that are more popular in the market currently. So, it can overall improve your resale.
Conclusion:
The resale value of your house depends on your planning. If your plan of renovation is good enough, and you are actually focusing on things that actually matter. Not every renovation is going to increase your property’s resale value. Some renovations only fix the issues in it that occur due to usage over time. Knowing exact estimates of renovation and all the sub-projects helps you better estimate the value of the property.
