Not all home renovations are created equal. Some projects are better investments than others. While beauty may be in the eye of the beholder, value is in the eye of the buyer (and appraiser). There are no guarantees when it comes to a return on your renovation investment, but there is some research to consider.
Remodeling Magazine publishes a Cost vs. Value Report on the top 22 home renovations every year. This report can help homeowners decide which renovation will help raise the stock of their home most when it comes time to put it on the market.
Geography Plays a Role in Determining the Return on a Renovation
Remodeling Magazine creates different reports for different regions and even cities within each region. A city like Detroit is in the East North Central Region along with some other larger Michigan cities on the list. These results give homeowners and contractors a more tailored report for their specific area.
The top renovations and remodels according to the 2020 Cost vs. Value Report for the Michigan area are the addition of manufactured stone veneer, replacing windows, and minor kitchen remodels. Many of these renovations can be either midrange or upscale. To understand the difference, think about the finishes used in a renovation. A midrange kitchen remodel uses a laminate countertop, whereas an upscale renovation might include granite or quartz countertops.
At a national level, one of the only renovations to increase in its return on investment from the previous year is an upscale master suite addition. For homeowners looking to see a high return, an upscale master suite addition is a great choice that also allows for relishing in the remodel in the meantime.
Don’t Neglect Personal Preference When Choosing a Renovation
Any renovation or remodel can improve your property’s loan-to-value ratio. Therefore, you should not just be driven entirely by a report when deciding which change to your current home will give you the greatest return. If you would get more enjoyment out of a finished basement as an extra living space or bedroom quarters than you would an updated kitchen, then choose the basement renovation.
The first step for any homeowner considering a renovation or remodel is to consult an experienced contractor like Construction Collective. Call Construction Collective at 800-704-1006 or use the online contact form to begin determining which renovation is best for you.