When considering your home renovation project, it’s fun to dream big and meditate on all of the ways that you can enjoy the final product of your renovation in the near-term. However, a second, arguably more important element to consider is how your renovation will affect your home equity in the long run, especially if you know that you may one day want to sell your home.
According to CNBC, California homeowners can expect an average payback of 64% of the cost of their renovation, and that number rises depending on your specific area and the type of renovation you choose to undertake. When looking at home renovations that build equity, look to the following areas first.
Renovations That Expand to the Outdoors
If you’re looking to expand your space and get more bang for your buck when it comes to selling your home down the road, consider an outdoor upgrade. High on the list of equity-building renovations is outdoor space upgrades. California homeowners have reported recouping up to 77% of their remodel costs for full or partial deck additions. Your architect and contractor can talk to you about how an outdoor deck or patio upgrade can be designed to make your space feel more expansive while adding to the value of your home for years to come.
Renovations That Use Manufactured Stone Veneer
Whether for indoor or outdoor use, manufactured stone veneer is one of the most popular upgrades on the list of value-adding renovation investments. Manufactured stone veneer is a newer type of “fake” stone that replaces the real deal. Usually thinner, lighter, and easier to install without additional structural supports than traditional stone materials, veneer stone is perfect for adding rich texture to your home. It also holds its value. Homeowners who chose manufactured stone veneer for their home remodels reported that they were able to recoup up to 120% of the value of the material upon resale.
Renovations That Update Structural Elements
Though it may not feel as exciting or luxurious as giving your indoor spaces a complete makeover, some of the most value-building renovations you can invest in include the outdoor elements of your home. Investing in new windows, entry doors, garage doors, or siding can help you give your home an exterior facelift while in some cases improving energy efficiency. What’s more: these elements will always be essential to your home, so investing in quality may help you recoup 60-90% of your project costs when you sell.
Renovations to Upgrade Your Kitchen
When it comes to remodeling wish lists, kitchens are often at the top – and for good reason. Not only can a well-planned kitchen remodel give you more space and functionality within this highly important space, but it’s also a project which, when planned properly, can easily add to the equity of your home. The key? Don’t go over the top. Keeping your remodel modest and functional will give you a better payoff in the long-run than splurging on extravagant upgrades.
Above all else, when planning a remodel project that will help you build equity, know your neighborhood. Speaking with a licensed real estate agent about home values and enticing features popular in your area can help you determine what you want to focus on in your renovation and what can take a backseat.
Ready to get started with an equity-building renovation of your own? Contact us to begin planning your dream renovation.
With years of experience in both commercial construction and residential construction, Alpha Omega Contractors is your go-to construction company in Southern California. Our experts take on projects ranging from residential kitchen remodels, bathroom remodels, and home renovations to commercial construction upgrades and improvements. As a trusted Orange County contractor and Los Angeles County contractor, we help bring your home remodel wish list and home renovation dreams to life. Whether you need help with a residential floor plan or an upgrade to your medical office or retail space, our team of general contractors, designers, and design-build experts will collaborate with you from the initial stages of pre-construction through to putting the finishing touches on your dream remodel project on time and within budget.
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