How to Add Value to Your Home With a Renovation Project

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If your home looks a bit long in the tooth or isn’t fit for purpose, you may want to consider a home renovation or cosmetic revamp. Though the two concepts are similar, we’ll discover how they differ later on in the article.

With the cost of living still high and not falling any time soon, you may want to consider renovating your home to eke out more value or add value to an investment property to attract higher rents. No matter the reason, here are some ways to add value to your home or property without breaking the bank.

How to Add Value to Your Home

Whether you’re planning to sell your home in the near future or simply want to invest in your most valuable asset, a well-planned renovation project can offer substantial returns.

What Do You Want to Improve?

Photo by Steffen Coonan

First off, what does your ideal renovated home look like? Taking inspiration from blogs, books, and social media, you can get a feel for the design cues and look-alike features and how you could apply them to your home.

Hiring an interior designer or architect may be required at this point, to tell you what is feasible for your home and what isn’t. Specialist designers may be required if you want to remodel specific areas such as your kitchen, living area, bathroom, or bedroom.

Do You Have a Budget?

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Photo by Pixabay

You’ll need to set a realistic budget. Many pundits say you shouldn’t spend more than 10% of the home’s total value on a renovation, but it really depends on what you want to do and what you can afford to add value to your home.

There are two kinds of renovation projects you should consider, with one being a cheaper option than the other. It also depends on how much work you are prepared to do yourself; and how confident you are with tools!

Cosmetic Renovations – Low Cost and Effort

photo of a bathroom
Photo by Terry Magallanes

Cosmetic renovations are renovations that don’t require extensive remodeling of the home and usually don’t need any external help from tradespeople.

Perform a cost-benefit analysis to evaluate the potential return on investment (ROI) of different renovation projects. Some upgrades, such as kitchen and bathroom remodels, typically offer higher ROIs compared to others.

Prioritize renovation projects that not only meet your needs but also provide the greatest potential to increase your home’s value.

a white kitchen with large rattan light shades and rattan bar stools

This can include;

  • Repainting or redecorating walls or living areas.
  • Refreshing the landscaping outside such as painting the exterior, updating the landscaping, and replacing the front door.
  • Installing a new garage door.
  • Resurfacing kitchen benchtops, installing new cupboard doors or furnishings, or replacing handles and fixtures.
  • Replacing old fixtures in bathrooms with modern, water-efficient ones, updating the lighting, and installing new tiles or a stylish vanity.
  • Adding a deck or patio can create additional outdoor living space that appeals to potential buyers.
  • Replacing old or worn carpeting with hardwood, laminate, or tile flooring.
  • Improving your energy efficiency by updating your home’s insulation, installing energy-efficient windows and doors, and upgrading to energy-efficient appliances.
  • Consider adding smart thermostats, security systems, lighting controls, and other automated features to your home.

Many people can follow instructions posted online and finish the work in a weekend or two.

Handy people may save a lot of money by doing some work themselves. Hiring tradesmen drives up renovation costs, and with good reason.

If you can do it yourself, you’re already ahead when it comes to costs. You can add value to your home quickly with a little bit of DIY. It might spell the difference between a reduced rent or a long-awaited rise if you plan to rent out your property in the near future.

Total Renovations – High Cost, High Reward

an open floor plan with kitchen, dining area and sofa

Total renovations (or even partial renovations, as some insiders call them) require external assistance from draftspeople, designers, and tradespeople to accomplish. This may require destructive (e.g., bashing out existing doors or walls) and reconstruction of the interior or exterior of the building.

Large renovation projects include;

  • Creating an open floor plan can make your home feel more spacious and inviting. This typically involves removing non-structural walls to create a seamless flow between the kitchen, dining, and living areas.
  • Adding features like heated floors or a walk-in shower
  • Increasing the usable living space in your home by finishing a basement, converting an attic into a bedroom or office, or building an extension.
  • Adding bifold or sliding doors in a kitchen to create an indoor/outdoor area.

Your home may be a construction zone for weeks or months at a time, so remember to figure out if you’re able to stay on the premises or need to vacate elsewhere.

Some renovations may require council or county planning permission, so ask your local tradespeople or builders for complete information.

Getting Finance For the Renovation

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Photo by Oleksandr P

If you are financing a major renovation project like a total renovation, this can easily extend into the modest five figures. One way homeowners finance a renovation is through redrawing on their mortgage and gaining an equity release.

However, even with the relative increase in equity, you will be paying far more in interest than compared with a discrete personal loan.

Getting finance online and taking out a five-year personal loan for renovations can work out cheaper in terms of interest than redrawing on your mortgage. It is also far cheaper than using credit cards which may charge interest upwards of 20%p.a.

Make sure you consult an online broker, who can look at many different loans that will suit your needs instead of accepting something from your bank or immediate lender.

Hiring the Right Professionals

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Photo by Andrea Piacquadio

Hiring experienced and reputable professionals is crucial to the success of your renovation project. Obtain multiple quotes, check references, and review portfolios before making a decision.

Ensure that contractors are licensed, insured, and have a solid track record of completing projects on time and within budget.

Renovating your home can be a significant investment, but it can also offer substantial returns in terms of increased property value and improved quality of life.

By focusing on key areas such as the kitchen, bathrooms, and living spaces, and by making strategic upgrades to improve energy efficiency, curb appeal, and functionality, you can transform your home into a more valuable and desirable asset.

Disclosure: Some of the links above are affiliate links, meaning that at no additional cost to you, I will receive a very small commission if you click through and make a purchase. These links help to pay the editorial costs of writing a blog. For more information, please read my full affiliate disclosure here.

I also use Artificial Intelligence Image generators to create some of my images. These are to show you examples of my ideas and inspiration when I cannot produce the real images myself.

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