Optimizing home value, Architectural investments, House paint advice, Online property style tips

Optimizing Home Value: Architectural Investments

7 May 2024

Home renovations can be a lucrative financial move.

Besides making your living spaces more comfortable and aesthetically pleasing, it can increase its market value.

These projects involve carefully choosing upgrades that reflect your style while considering what potentially brings a higher return on investment in the future. Whatever the enhancements are, each choice must align with your preferences and smart economics.

This guide will outline a list of architectural investments that can attract future homebuyers. We will also discuss the impact of architecture on property value, factors determining whether remodels can make your home marketable, and improvements that may not yield your desired return on investment.

The Impact of Architecture on Home Value

Homebuyers value style, functionality, and sustainability. These design features make the space visually appealing and ensure the layouts work well together.

For example, well-designed properties that maximize space can appeal to buyers. Some may also seek properties with garages they can convert into home offices.

Additionally, architectural enhancements often translate to better styling and atmosphere.

When redesigning your home, you remove some personal touch so potential buyers can imagine themselves living there. You create an ambiance by adding elements that resonate with specific individuals.

Architectural Investments That Help Increase Home Value

Kitchen renovations

Homebuyers often seek modern kitchens because they’re one of the most-used rooms.

Thus, renovating your kitchen may make your property marketable.

Minor kitchen enhancements that can add market value involve ceiling repainting, floor replacements, cabinet and countertop remodeling, and appliance upgrades.

You can obtain a decent return from these investments by keeping the costs low. Over-engineered remodels typically bring lower returns because only specific buyers recognize these features.

Bathroom remodeling

Like kitchens, bathrooms are also frequently used spaces. Stylish bathrooms that feature contemporary designs and fixtures can significantly amplify the appeal of your property to homebuyers.

However, bathroom renovations typically follow the same return on investment pattern as kitchens.

Rather than investing in digital upgrades, keeping your bathroom clean and organized is ideal. You can replace the fixtures, such as the tub, toilet, and vanity, with modern versions to enhance functionality.

You can also expand the space by adding amenities like a walk-in shower, dual sinks, and built-in storage solutions.

Outdoor space enhancements

For many homebuyers, outdoor spaces are essential. Besides curb appeal, these areas provide spaces for entertainment, relaxation, hobbies, and get-togethers.

Some investments that can enhance your outdoor spaces include:

Add new walkways or install outdoor lighting
Replace the front door, vinyl siding, and garage door to enhance aesthetics and functionality
Retouch worn areas and scrub the siding to remove dirt buildup

Repainting exterior walls and fences
Add more green spaces to accommodate outdoor activities

However, it would be best if you didn’t go overboard with the remodels. Keeping your lawn and front yard clean might be all you need to boost your exterior’s appeal.

Energy-efficient upgrades

The adoption of green power sources has made energy-efficient appliances valuable to homebuyers.

These upgrades can lower energy bills and ensure sustainability, making them attractive features for eco-conscious homebuyers.

One energy-efficient upgrade worth investing in is converting the ventilation system from a fossil fuel furnace to an electric heat pump. While the upfront fees can be costly, this conversion may generate high returns.

Other energy-efficient improvements you can consider:

Installing programmable thermostats and energy-efficient doors, lights, and windows
Sealing air leaks on ceilings, walls, doors, windows, floors, and fireplaces with caulk, spray foam, and weather stripping

Adding insulation to the attic, basement, and exterior walls

Converting basements into living spaces

Converting your basement into a living space is an architectural investment that can pay off. It can attract homebuyers because it adds a habitable area.

With many people adopting the work-from-home setup, transforming the basement into a home office is an architectural investment that can add property value.

Other basement finishing projects to consider include:

Convert the basement into a bedroom, bathroom, or second kitchen

Add a storage space, guest room, recreation room, or a kids’ play area
Waterproofing and plugging the leaks

Roof replacement

Roof replacements can increase property value. However, the returns depend on the type of replacement.

Asphalt – The 2024 Cost vs. Value Report shows that new asphalt shingles can yield a resale value of $17,461, representing 56.9 percent of the recouped costs.
Metal – The same report indicates that a metal roof can increase resale value by around $24,034, representing 48.1 percent of the recouped costs.

Smart technology integrations

Smart technology integrations are becoming increasingly popular among tech-savvy homebuyers.

These upgrades include:

Smart lighting – Programmable lights you can schedule to turn on and off
Thermostats – Programmable thermostats that monitor temperature levels and automatically shut off when you’re away

Security systems – Internet-connected systems you can monitor even if you’re away from home
Kitchen appliances – Wi-Fi-enabled appliances that can track food inventory, place grocery orders, or suggest recipes based on available ingredients
Innovative entertainment systems – TVs, speakers, and streaming devices with voice assistant or intelligent hub integrations

Accessible design

You can increase your home’s value by prioritizing accessible design that caters to individual capabilities and preferences.

Here are the universal design principles you must follow:

The design appeals to people with diverse abilities

The design accommodates various abilities and preferences
The space is straightforward to understand, regardless of user experience, knowledge, language skills, and concentration level
The design must effectively communicate information regardless of users’ sensory abilities and ambient conditions

The space minimizes hazards and adverse consequences of accidents and unintentional actions
The user can use the design comfortably and efficiently
The design has appropriate sizes and spaces for reach, use, and manipulation, regardless of body size, mobility, and posture

Examples of accessible design features include:

Step-less entrances (ramps)
Wide doorways and hallways

Adjustable height counters in bathrooms and kitchens
Pull-down shelving

Do renovations always increase a property’s market value?

The answer is no. Even if they do, they’re not often similar to recouping the costs or making a profit.

Some upgrades may also not increase value because they’re not aligned with your neighborhood’s style or go beyond an average homebuyer’s preferences.

Factors that determine if renovations increase market value

The factors that determine if architectural renovations will increase resale value include:

Current real estate trends

Property location and neighborhood
Buyer preferences
Material quality

Consulting a real estate agent before starting remodeling projects is ideal. Agents can provide expert knowledge and insights about design choices that yield higher returns.

Renovations That Decrease Market Value

Since not all renovations increase home value, here are the enhancements that can decrease the resale value:

Highly personalized customizations

Features with continuous maintenance (e.g., swimming pools)
Bedroom removal
High-end kitchen and lighting fixtures

Converting a bedroom into a closet

These remodels may destroy valuable features or turn the buyers off.

Meanwhile, hyper-personalized details can make it challenging for homebuyers to visualize themselves in the space. These features are fine if you stay on the property for years, but you may have to undo some work when reselling.

Should you renovate based on property value?

No. Architectural remodeling goals must focus on creating comfortable and functional living spaces.

It’s essential to compare your property value with other houses in your neighborhood. Costly upgrades might not generate high returns if they make your home more expensive than nearby properties.

Financing is also involved. If savings aren’t sufficient to cover the costs, taking out a personal loan can help. However, you must regularly conduct credit tracking to ensure a good credit score for quick loan approvals.

Invest Wisely

Architectural remodeling projects require careful planning. Your choices must secure your property’s asset value while maintaining comfort and functionality.

Remember to consider the market to ensure every upgrade is a wise investment that generates your desired financial returns in the long run.

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