The home remodeling market has grown over 50% since the end of the recession, to the tune of $450 billion, according to a report from Harvard’s Joint Center for Housing Studies. Of course, certain remodeling projects pay off in terms of real estate value a lot more than others – these five additions are some of the best if you hope to increase the value of yours.
A Second Story
If you can afford it, a two-story addition to your Ottawa real estate significantly increases the square footage of a home and any time square footage is increased, you’re likely to increase your home’s value simply because the price is typically calculated based on factors like the amount of livable space. It typically brings a big return on investment, 65 percent according to Home Advisor, for an addition with an upstairs master suite.
If adding another story to your home isn’t in your budget, think about a deck. Decks are especially popular among homeowners and potential buyers – they could bring an ROI of 75% or more. The cost of putting in a deck varies quite a bit, depending on the size and things like stairs and built-in seating as well as the design and materials used. You can save by doing the work yourself, but constructing a deck isn’t as easy as it might seem, requiring specific tools like a bandsaw that can be very pricey. The key whether you go DIY or not is to avoid going overboard – keep the deck more in line with the value of your home, meaning don’t install a huge, fancy deck in a small house with a tiny yard. It’s generally recommended that a deck be about one-fifth the size of your backyard.
One of the biggest turnoffs to potential homebuyers is a home that doesn’t have enough bathrooms. Adding a bathroom, or even a half-bath, if you have the resources, is another one of the best ways to boost the value of your real estate. The cost depends on the size and accessories – you may be able to save big by purchasing items like toilets and sinks that have been floor models in the larger home improvement stores such as Home Depot and Lowe’s.
A Master Suite
Even if adding another story isn’t in the cards, a luxury master suite addition can dramatically increase your home’s value. Just how much really depends on the other houses around you. If your neighborhood is filled with retired couples living in two-bedroom homes, you probably won’t recoup as much of your investment, but if upscale master suite additions are common where you live, you’ll get a lot more.
While you may not think it would make a big difference in the value of your home, these days, buyers are searching for homes that are more energy-efficient. Old single-pane windows are a big turn-off as they’ll result in much higher heating and cooling costs. By investing in energy-efficient windows, you’re likely to recoup most of the cost – and, by installing Energy Star-rated windows you may also get a green energy tax credit (just be sure to verify with your tax accountant or the IRS as those can change from year-to-year).