Home Remodeling & Real Estate Investments: Which Remodeling Projects Have the Most Return?
You’ve likely often heard that remodeling your home has an impact on its future value should you decide to sell at a later time. If you’re considering any type of large remodel to your Colony residence, you’ll need to keep in mind your current preferences and preferences of any future home buyers. As a resident in The Colony and as a realtor in The Colony since 2003, I try to provide valuable guidance to my clients to help them make the best real estate decisions both now and in the future.
Here, I will go into detail about the different kinds of luxury home remodeling projects and which of those projects can turn your investment into a valuable selling point should the time come to sell.
Major Kitchen Remodels
Major kitchen remodels in luxury homes often provide the highest return-on-investment when it’s time to sell. As we all know, kitchens are the heart of any home and this shows in the ROI homeowners receive after the remodel is complete. All remodeling trends come and go, but when you’re getting ready to sell it’s essential to take note of what others are doing.
There are a number of different options available in luxury kitchen remodeling, but again, it’s important to weigh your own preferences against changes that may give you the best return. According to Forbes, “for a major kitchen remodel of a 200 square-foot kitchen that costs $113,000, you can expect a 60% payback after the sale.” To recoup that much (and potentially more), you’ll want to focus on these kitchen improvements recommended by HGTV:
- Concealment of Appliances + Appliance Garages: Fully integrated or hidden appliances marks the next phase in the kitchen’s design evolution. Disguising appliances as cabinets and/or putting appliances underneath countertops gives the design a more streamlined look. An appliance garage will store all your small appliances and you won’t need to be moving the appliance each time you use it.
- New Functionality: Swing out cabinets give functionality a whole new meaning while adding savvy storage. Kitchen cabinet functionality is changing for the better – hydraulic and easy-close doors are perfect for the next kitchen remodel.
- Bold Fixtures: Go bold or go home. Playing it safe in the kitchen with your fixtures is no longer an option; accessorize your kitchen with those WOW fixtures that will be sure to amaze future homebuyers.
- Maximize Storage: Storage will never go out of
style. Modern cabinetmakers take storage into account when creating custom cabinets. Manufacturers are now doubling up storage with clever multi-tiered drawers.
- Add Automation: Technological innovations have made it possible to add in automation into the kitchen. According to HGTV, “kitchen technology is here to make your life easier – from sensor-activated lights to meat thermometers that’ll alert your smartphone when dinner is done.”
- Commercial Grade Appliances: Commercial grade appliances are a smart strategy for kitchen remodeling. Commercial grade appliances will inspire healthy family meals and gourmet cuisine for when you are entertaining family and/or guests. Commercial grade appliances will attract a diverse group of home buyers.
Major Bathroom Remodels in 2016
Bathroom remodels add major value to any luxury home and high-rise and can give you an attractive return-on-investment. According to a recent report from Joint Center for Housing Studies of Harvard University (JCHS), remodel spending is projected to accelerate into 2016. The report projects annual spending for home improvement will accelerate from 2.4% last quarter to 6.8% in the second quarter of 2016. Property values are rising again here in Southwest Florida. The healthy housing market in Southwest Florida is strengthening and will continue to encourage homeowners to invest in more home improvements, such as bathroom and kitchen remodeling work. Since homeowners are starting to feel better about their property value they now want to add to that property value. Much of the investment is going back into homes in the form of renovations (Kitchen, Bathroom, Bonus Rooms). If you are wondering when you should start your Southwest Florida home remodel – the time is NOW!
A recent study conducted by the National Association of Realtors mentioned “sellers are already diving into more remodeling projects and using come of the equity in their homes to fund those projects. Black Knight Financial Services reported an increase in cash-out refinancing this summer – a 68% percent jump in the second quarter year-over-year, and it’s now at the highest level in five years.” The study claims one of the main contributing factors for this upward shift is a low interest rate – homeowners need to start on their remodeling now before interest rates rise. “The industry is expected to grow to $300.5 billion in 2016”, according to John Burns Real Estate Consulting. Homebuyer optimism should remain steadfast with these positive projections.
Home Remodeling & Real Estate Investments in Southwest Florida
If you are looking to remodel your luxury home, remember that kitchens and baths are the most important areas in a luxury home where you can tell if money has been well spent or not. It’s important to talk to a real estate professional if you’re considering remodeling with resale in mind.
If you’re interested in remodeling your luxury Colony residence for resale purposes, speak to a licensed real estate expert that will help you navigate through the Southwest Florida Real Estate market. It’s my goal as a real estate expert in the Colony to guide my clients, but to also provide them with valuable insights into recent and future remodeling trends. With my expertise, I’ll be able to educate you on what bathroom and kitchen features turn on buyers in our market now and in the future.
Are you interested in learning more about the value of your Colony residence with or without a remodel? If so, please contact me today so I can help you with your Colony value estimate.