As a certified real estate appraiser in northeast Ohio, I’ve interacted with numerous homeowners who often ask me how they can add value to their property or expect returns on renovation investments. The answer, however, is not straightforward, as multiple factors influence property value. Nevertheless, there are some key considerations homeowners can keep in mind to maintain and increase their property’s value.
Regular Maintenance and Upkeep: The most crucial aspect of preserving property value is consistent maintenance. Ensuring that all building components, such as HVAC systems, plumbing fixtures, electrical systems are repaired or replaced in a professional manner will help maintain the property’s market value.
Kitchen and Bathroom Updates: When kitchen or bathroom areas become dated or require replacements, a complete overhaul is often unnecessary if these areas are appropriately maintained. Recently, I have been in newer homes built in the prior 5-10 years where a complete remodel of the kitchen and bathrooms has already taken place. So, it’s advisable to make improvements that align with the market’s expectations, as a five to ten-year-old kitchen that has been well maintained, and not investing tens of thousands of dollars in renovations that cater to personal tastes, which may not yield significant returns.
Finishing the Basement: Homeowners must set realistic expectations when finishing their basements. Depending on the basement type, some finished areas can add considerable value, such as basements with tall foundations and designed for a walk-out or with garden style windows to the exterior. Homeowners need to think it may not increase the square footage of the home in the eyes of appraisers or lenders, but should be thought of as an amenity to the home. The return on investment for finishing a basement may not be positive, considering the high costs involved.
Landscaping Projects: Landscaping is typically considered a decorative component. Patio and hardscape features can add value, but again, these items are constructed typically to personal taste, at a high cost.
Consult with a Professional Appraiser: When considering major renovation projects, consulting with a professional appraiser can provide valuable insights into potential returns and benefits. Doing so can save homeowners significant amounts of money. Maintaining and increasing property value requires ongoing maintenance and routine upkeep. Thoughtful updates to areas like kitchens and bathrooms can be beneficial, but renovations should be done with market expectations in mind. Finishing a basement or investing in landscaping projects may not always yield positive returns, so it’s crucial to weigh the costs and potential benefits carefully.
