More and more Americans are choosing to renovate their homes.
In 2017, home renovations spending increased to $314 billion—a 6.5 percent jump. Experts predict another 7.5 percent jump in 2018, when home renovations spending will reach nearly $340 billion.
Not only does a renovation make your home more aesthetically pleasing, but it also boosts the value of your real estate investment. U.S. home values increased by an average of $15,000 last year, in part because of renovations.
But what you renovate matters. According to TD Bank’s Home Equity Sentiment Index, 54 percent of Americans would renovate a kitchen, while 46 percent would renovate a bathroom. Yet only one-third of homeowners would make renovations to increase their home’s value.
This is a huge mistake! Here are some facts:
- Adding granite or quartz countertops adds more than $17,000 to the price of a home.
- A mid-range bathroom remodel of $19,134 returns about 70 percent of its value upon sale of the house.
- A $17,000 composite deck adds 63.6 percent of its value to a house, while a $11,000 wooden deck adds 83 percent of its cost.
If you’re able to invest in renovations, look beyond the short-term cost. Think bigger than the renovation itself.
A $20,000 investment can move you one step closer to luxury living—and selling.