Month: March 2024
The ROI of Home Renovations in Minnesota: What to Expect
Deciding to renovate your home is an investment, other than the immediate benefits are there other things to consider as ROI of home renovations?
Follow along through this blog post to see if the renovations you had in mind, might be beneficial when it comes time to sell.
Deciding to renovate
The first step in this whole decision process is to decide if renovating is something you even want and can afford.
Do you want to renovate?
You’re here for some reason, so renovation has at least been on your mind lately. Whether it’s your kitchen, bathroom, basement or other areas of your house, getting a return on your investment or ROI on home renovations is something to consider. If renovating is on your mind and something you plan on doing no matter what, knowing about your ROI may be a helpful tool.
Why are you renovating?
If you’re thinking about renovations in your long term or “forever” home, the ROI of home renovations for you will look different than someone who is looking to fix something that has been bothersome in an attempt to sell their home for more. Moving forward in this post we will talk about personal ROI and monetary ROI.
Personal ROI
You bump into the same cabinet every single time you go around a corner. You wish to be able to use your basement for recreation or living and not have it be a cold cement space. You want to entertain but the three feet of task space makes cooking for more than three people really hard. You hate the color in your bathroom or wish the shower was bigger.
The list of reasons to renovate parts of your home for personal ROI could go on and on. It’s hard to quantify just how much ROI your home renovations will give you. But to go off the list above, you could widen a hallway or move a bank of cabinets to ensure that there is adequate space for moving around. Finishing your basement usually doubles your livable space in your house. So finishing your basement is a little more quantifiable, because you get double the square footage, usually another bathroom, more living space or bedrooms. This one is also great because it fits into monetary ROI too. Great designers and contractors can give your more tasking space in your kitchen without knocking down walls, moving plumbing, or generally change too much about your kitchen, keeping your costs lower than you may expect while giving you more space.
Monetary ROI
When thinking about monetary ROI on home renovations, thinking about the problems is going to be more practical than the desires. Remodeling and renovations can absolutely boost the sale price of your house. Just make sure to be strategic about where you spend your money, or it may not matter in the long run.
One thing to consider when thinking about renovating your home with the idea to sell is your market. The likelihood of selling your home hundreds of thousands of dollars above the average price in your area just because you did $100,000 in renovations is super low. Recently a homeowner tried to sell their home for $100,000 over the average home value in their neighborhood because they had put about $75,000 worth of renovations into their home. These renovations included a deck, major landscaping, a partially finished basement, solar panels, and minor cosmetic upgrades inside the home. What they didn’t account for was, their neighborhood heavily catered to young and growing families. With only two bedrooms and two bathrooms, this house was not renovated for a family to use. The deck certainly adds value, but a family would have much rather had more bedrooms than extensive landscaping. Or a fenced in yard over solar panels.
I told that story in Monetary ROI because they definitely made the renovations they did for themselves, or Personal ROI, but they expected Monetary ROI. They did not sell the home, and are still living there enjoying the renovations they made, but they didn’t see the ROI on renovations that they had hoped to.
People that will see Monetary ROI on renovations are people who use those renovations to solve a big problem. According to the Remodeling 2023 Cost vs. Value Report (www.costvsvalue.com) the renovation with the highest ROI in the Midwest in 2023 was HVAC conversion to electrical. Followed by siding replacement, vinyl, and the addition or replacement of manufactured stone veneer. Check out that link for the full report and to see where your highest ROI could come from.
Better left to Personal ROI
Here is a list of awesome renovations that may leave you feeling a little better if you do them for you, than for your homes next owners, according to Cost Vs. Value
- Major Kitchen Remodel
- Upscale Primary Suite Addition
- Upscale Bathroom Addition
- Upscale Bathroom Remodel
- Sunroom Addition
- Swimming Pool Addition
- Home Theater Addition
The Top 5 Signs Your Home Needs a Makeover
Your home is more than just a place to live; it’s a reflection of your personality, style, and comfort. Over time, however, even the most well-loved homes may start to show signs of wear and tear. In this blog post, we’ll explore the top five signs that indicate your home is in need of a makeover. Whether it’s outdated design, lack of functionality, or visible wear and tear, recognizing these signs early can help you embark on a transformative renovation journey to breathe new life into your space.
Outdated Design and Décor:
The impact of outdated design and décor can be keenly felt. Homes with outdated elements often exude a sense of staleness and lack of inspiration, diminishing the overall atmosphere and appeal. From the charm of Victorian-era dwellings to the sleek lines of contemporary abodes, the aesthetic evolution of homes in Minnesota reflects changing tastes and lifestyles. Signs of outdated design are prevalent, from old-fashioned wallpaper adorning the walls to worn-out furniture that has seen better days, and faded paint colors that have lost their vibrancy over time.
However, amidst the sea of outdated design lies an opportunity for transformation and revitalization. Modern design trends offer a breath of fresh air, infusing homes with renewed vitality and contemporary flair. In Minnesota, homeowners can embrace Scandinavian-inspired minimalism with clean lines and natural materials, or opt for the cozy warmth of hygge-inspired interiors with soft textures and neutral tones. Alternatively, they may choose to incorporate elements of industrial chic, with exposed brick and metal accents adding an edgy sophistication to their living spaces. By embracing these modern design trends, homeowners can breathe new life into their homes, creating spaces that feel current, inviting, and reflective of their personal style.
Lack of Functionality:
The importance of a well-designed living space cannot be overstated. Functionality is the cornerstone of a harmonious home, influencing every aspect of daily living from morning routines to evening relaxation. Yet, when functionality is compromised, the impact on residents’ quality of life becomes palpable. Signs of a lack of functionality manifest in various forms, from cramped living spaces that inhibit movement and flow, to insufficient storage solutions that lead to clutter and disorganization. Inefficient layouts exacerbate these challenges, hindering homeowners from fully enjoying and utilizing their living spaces to their fullest potential.
Fortunately, for Minnesota homeowners seeking to restore functionality to their dwellings, a myriad of renovation solutions awaits. From room expansions to storage solutions and layout redesigns, the possibilities for improving functionality are endless. Room expansions offer additional square footage to alleviate cramped quarters and provide breathing room for occupants. Thoughtfully designed storage solutions, such as built-in cabinets, shelving units, and closet organizers, optimize space and promote organization. Meanwhile, layout redesigns can reconfigure existing spaces to enhance flow and usability, ensuring that every corner of the home is both functional and inviting. Through these renovation projects, Minnesota homeowners can transform their living spaces into efficient, well-appointed sanctuaries that cater to their lifestyle needs.
Visible Signs of Wear and Tear:
Visible signs of wear and tear can cast a shadow over the beauty and charm of these dwellings. These telltale signs not only detract from the overall appearance of the home but can also diminish its value and curb appeal. From chipped paint on exterior siding to cracked tiles in the kitchen or bathroom, these imperfections serve as reminders of neglect and deferred maintenance. Additionally, water damage, whether from leaky roofs or faulty plumbing, can wreak havoc on a home’s structural integrity and aesthetic appeal, further exacerbating the problem.
Recognizing the importance of maintaining a home’s integrity, Minnesota homeowners are urged to address visible signs of wear and tear promptly. By taking proactive measures to address these issues, homeowners can prevent further deterioration and safeguard their investment. Whether through repainting exterior surfaces, replacing damaged tiles, or repairing water-damaged areas, prompt action can restore the home’s appearance and functionality while preserving its value for years to come. With a commitment to regular maintenance and timely repairs, Minnesota homeowners can ensure that their homes remain showcases of beauty, comfort, and durability amidst the changing seasons.
Energy Inefficiency:
In the diverse climate of Minnesota, where winters can be harsh and summers humid, energy inefficiency can pose significant challenges for homeowners. Not only does it result in higher utility bills, but it also diminishes the overall comfort levels within the home. Drafty windows, outdated insulation, and inefficient appliances are common culprits of energy inefficiency, allowing precious heat to escape during the winter months and cool air to seep out during the summer. These signs of inefficiency not only compromise the home’s thermal envelope but also contribute to temperature fluctuations and discomfort for occupants throughout the year.
Fortunately, Minnesota homeowners have the opportunity to combat energy inefficiency through targeted renovation projects aimed at improving energy performance. By upgrading to energy-efficient windows, enhancing insulation, and investing in ENERGY STAR-rated appliances, homeowners can significantly reduce their energy consumption and lower utility costs. Beyond the financial benefits, energy-efficient renovations also contribute to a more comfortable living environment, with improved indoor air quality and temperature regulation year-round. As stewards of both their homes and the environment, Minnesota homeowners can take pride in making sustainable choices that benefit both their wallets and the planet.
Decline in Property Value:
Neglecting maintenance and updates can spell trouble for property values. Over time, homes that suffer from deferred maintenance and outdated features may experience a decline in value, impacting homeowners’ equity and financial well-being. Signs that a home may be losing value include comparable properties selling for more in the neighborhood, as well as a noticeable decrease in curb appeal due to neglected landscaping or exterior upkeep. These indicators serve as red flags for homeowners, signaling the need for proactive measures to protect their investment and preserve their home’s value over time.
However, Minnesota homeowners need not despair, as investing in a home makeover can breathe new life into their dwellings and bolster property values. By undertaking renovation projects that address outdated design elements, enhance functionality, and improve energy efficiency, homeowners can increase their home’s appeal and attract potential buyers in the competitive real estate market. From modernizing interiors with stylish upgrades to enhancing curb appeal with landscaping improvements, a well-executed home makeover can significantly impact a property’s marketability and resale value. By investing in their homes today, Minnesota homeowners can secure a brighter future for themselves and their families, while enjoying the benefits of a beautifully renovated living space.
Conclusion: Recognizing the signs that your home needs a makeover is the first step towards transforming your space into a place you love to call home. Whether it’s updating outdated design, enhancing functionality, or addressing visible wear and tear, a renovation project can breathe new life into your home and increase its value for years to come. Ready to embark on your renovation journey? Contact Satin Touch, Inc. today to get started!
