If you've ever thought about selling your home at all—whether you're trying to sell now or further down the road—renovating to add value to the home has probably crossed your mind. Cost-effective home renovations are a common practice for anyone in the seller's market, but what are the best home renovations for resale value?
It's important to weigh cost vs. value when it comes to home renovations and it's also important to research your own real estate market. For example, the renovation projects that result in the biggest return on your investment in the Austin real estate market aren't necessarily the same as other American cities. We're not just referring to the resale value of adding pools to Austin homes for sale vs. homes in a city in the northern states either. According to a recent cost vs. value report published by Hanley Wood Media Inc., a number of renovations that are far smaller and less obvious can net you the biggest financial gain when it's time to sell your Austin home.
1. Manufactured Stone Veneer
According to the Hanley Wood report, covering the walls of an Austin home with a lovely manufactured stone veneer will add around $5,000 more to the resale value than the estimated $7,500 in renovation costs. This results in the best bang for your buck of any renovation project in Austin and proves you don't have to spend a lot to make a lot.
The advantages of manufactured stone veneer over other types of stone are the cost, the easiness of application, and it comes in a variety of designs and colors.
2. Fiberglass Attic Insulation
The report says adding fiberglass loosefill insulation to the attic will net Austin home renovators the second-highest return on their investment when it comes time to resell their homes.
Hanley Wood estimates this job would cost around $1,250 and would add nearly $2,000 to the resale value in the Austin real estate market, so it might be your smartest renovation investment because, once again, you wouldn't have to spend a lot of money to make money. It's also a good idea even if you're not planning to sell your home anytime soon because insulating your attic will likely lower your energy bills and no one wants a drafty home.
As an interesting side note, the resale value added by this project in Austin is significantly higher than the national average. This despite the warmer climate in Austin compared to most American cities.
3. Front & Garage Door Replacements
Depending on where you live in the Austin area and how much you're willing to spend on the project, replacing the front door and the garage door of your home can also make you money on the resale value of your home.
Replacing the garage door on a typical Austin home is estimated to cost around $1,500 and will get you close to that amount in resale value. On the other hand, a new garage door on an upscale Austin home (with the addition of insulation) would cost twice as much, but the resale value would actually net you around $300 profit after renovation costs.
The report also says adding a new front door made out of fiberglass will add close to the same amount in resale value as the cost of the project. Of course, with any type of exterior door improvement, you're adding a lot of curb appeal for anyone driving by the home or looking at photos online.
4. Basement Remodeling Project
While the large majority of Austin homes don't have basements thanks to most of the city being constructed on solid rock, a privileged few are lucky enough to have finished basements. If you've been thinking of sprucing up your basement regardless of any selling intentions, you'll be happy to know that not only will your basement look a lot nicer, but a $61,000 job in Austin is estimated to add more than $56,000 to the home's resale value. This is another project that can get you a much higher return on your investment in Austin than in most other American markets.
Of course, there are a wide range of remodelling options available, but the project in the Hanley Wood reports suggests that the most profitable basement renovation project would include an entertainment area with a wet bar and full bathroom, as well as ceiling light fixtures, and laminate flooring.
Whichever way you choose to tackle your basement redmodeling project (if you have one!), it should get you a solid return on your investment in the Austin real estate market and you'll enjoy a new space to entertain guests while you're still living there.