Roughly half of home buyers renovate their new properties after purchasing them. Some do this for investment purposes, and others renovate just to have their ideal home. Home renovations can have numerous practical and financial benefits, but it’s essential that you consider a range of important factors before deciding to move forward with a renovation project. Read on for insights into whether or not you might want to be one of the 53% of buyers undertaking home renovations.
Renovation vs. move-in ready
When you buy a home, you have the option to get cozy in a move-in-ready home or embark on the adventure of a home renovation. However, you can renovate any home, whether or not it’s considered move-in ready or a fixer-upper at the time of the sale. In other words, there’s no home that can’t be renovated into an even nicer one. Just make sure that 1) it will be feasible to do the renovation in light of local regulations, including HOA rules, 2) you have the budget after totaling all costs, and 3) you will be happy with the end result.
Why buyers renovate
Buyers can derive many different benefits from renovating, depending on their real estate goals. Some renovate for the purpose of flipping a home for a profit. Others renovate in order to have a nice rental property. However, most buyers who renovate do so just to improve the quality of their residence. After all, renovating allows you to take a house off the market and make it yours instead of waiting until you find your perfect home on the market. Especially during a hot market when there’s a lot of competition for nice homes, this can be a great strategy. Your realtor can give you guidance when it comes to the question of choosing a home that is totally move-in ready versus starting a renovation project.
Home buyers may also renovate for functional purposes. For instance, you could knock down a wall between two bedrooms in order to create one large, luxurious room. You could also subdivide a room or make an addition in order to have more bedrooms. Renovations could also make logistical and financial sense for homebuyers. When the available stock of homes for sale gets tight or there are not a lot of new homes available, these market conditions can spur home renovations. Oftentimes, homeowners find that it makes more sense to renovate the home they have than to buy a new one. For instance, you’re looking at houses for sale in Highlands Ranch, CO, and maybe there are homes at the right price but not with the right features. This would be a good opportunity to renovate one of the available homes into your ideal Highlands Ranch real estate.
What buyers renovate
Buyers commonly add fresh paint, new appliances, and other small improvements to their new homes. More ambitious renovators may go as far as putting an addition on their home. Bathroom and kitchen renovations are popular, and kitchen renovations, in particular, can add a more elegant form and more convenient function to a house. Kitchen renovations can include adding popular features, such as a central kitchen island, or replacing old surfaces and appliances. The opportunity to renovate with higher-end materials is a good way to add to a home’s value. In addition, renovations that enhance energy efficiency are becoming popular due both to the importance of sustainability and the ever-increasing cost of home energy.
Financial benefits of renovations
If you’re a real estate investor, then renovations are strictly a matter of money in versus money out. However, even if you’re renovating just to get more enjoyment out of your living space, you may enjoy a substantial gain in your home equity. Certain home renovations may also be worth the money because of enhanced energy efficiency or other benefits over time. Consider, for instance, the idea of replacing windows with modern, easy-to-open, energy-efficient ones. This moderately low-cost investment can lower a home’s utility costs for years to come.
Before undertaking a home renovation, consider if the investment of time, energy, and money will be worth the outcomes. It depends in part on the market in your area. Could you find a suitable home at a suitable price without renovating, or does it really make sense to purchase a particular home and renovate? Your realtor should be able to give you a solid opinion here.
Home renovation ideas
When it comes to renovating a home, start with the most basic and cost-effective steps. Fresh paint comes to mind here. While fresh paint and minor fixes can go a long way, home renovations frequently involve slightly more intensive projects. The next level up would be to renovate your lighting. New lighting fixtures can be a low-cost improvement that can improve energy efficiency while also enhancing the ambiance of your home and adding function. Another popular option is to convert a spare room into a niche space, such as a home gym, office, game room, theater, or anything else you could imagine having in a luxury home.
Outdoor renovations are also great for leveling up your home. Many homeowners want decks, patios, or verandas. Pools and fountains are a popular choice as well. One of the most luxurious exterior renovations you could do would be to add an outdoor kitchen. This makes for easy entertainment when the weather is nice, and it will allow you to spread out and express your culinary passion without inhibition.
Lastly, some ambitious renovators will knock down walls and add extra rooms to their homes. This may be a great option if you have a growing family or if you are looking to enhance your existing home rather than buying a new one.
Get help finding the right home for your renovation project - Greg Myers, realtor
Will you be one of the 53% percent of buyers who undertake home renovations? You won’t be able to decide exactly what renovations your next home needs until you find it. If Colorado is your destination, consider reaching out to local realtor Greg Myers. Greg’s portfolio of home listings includes many houses for sale in Highlands Rance, CO that can be renovated to become your perfect family home. Greg can also assist with selling your home. His areas of specialty include Colorado Springs, Castle Rock, and Highlands Ranch real estate. Talk to Greg Myers about your next home purchase, renovation project, or sale to see what’s possible for you.