Paige Yates | October 1, 2023
If you want to maximize your home's value before selling, adding more square footage is one of the most appealing options. Who doesn’t want an extra bedroom or larger kitchen?
But does extra space actually give you the biggest bang for your buck?
In general, adding livable areas increases value. According to the National Association of Realtors, every 1,000 square feet added can boost value by over 30%.
Extra bedrooms and bathrooms in particular, bring high returns. By adding functionality, they make the house function better for buyers. Going from 2 to 3 bedrooms opens your home to more families. An additional bathroom prevents early morning congestion.
But your current home size matters. A modest 2-bedroom house has much more to gain from a master suite than an already spacious 4,000-square-foot house. You want the addition to solve a deficiency, not just add excess space.
A quality addition can certainly pay for itself upon sale as long as it increases functionality and helps create demand with buyers.
At a certain point, extra space provides diminishing returns. If your home already has 4+ bedrooms, another room may not add that much value. And after three bathrooms, more doesn’t necessarily add appeal to most buying parties (unless you’re targeting the luxury market).
Luxury additions like home theaters and wine cellars can be nice perks. But they may not translate to a much higher sale price. Furthermore, an in-ground pool in a neighborhood where pools are uncommon due to the cool climate, long winters, or lack of space is unlikely to increase the sales price.
Listen to what your home needs, not just what you want. Target additions that increase functionality without overbuilding. Focus on quality over maximum square footage.
While space additions can provide ROI, other renovations can add value to your home. If you want to increase the value of your home without increasing square footage, consider the following:
Renovating or upgrading the kitchen can yield a 67% return on investment, with high-quality materials being essential.
Installing a new roof has a return of 105%, siding at 93%, and a front door at 97%. However, if you're on a budget, simple fixes like adding new hardware and colorful flowers can attract buyers.
Electrical, plumbing, and HVAC upgrades yield an average return of 71% for HVAC and 93% for electrical panel upgrades. Adding attic insulation provides a substantial 117% return. While these upgrades don’t improve appearance they do have considerable impact on resale value.
Outdoor living spaces are very desirable to buyers. A wood deck offers an 87% return on investment, while sunrooms have slightly lower returns. Consider the broad appeal of your outdoor renovation.
If your primary goal is just to quickly increase the sale price of your home, consider staging. Staged homes sell 79% faster, making it a worthwhile investment to help buyers envision themselves in the space.
So, while square footage additions can have excellent ROI, carefully weigh other options for maximizing your home's sale price. Listen to what your home truly needs and focus on quality over quantity.
Do you want a professional opinion on how to best increase the value of your home? Get it touch with the Yates Team.
Stay up to date on the latest real estate trends.
Valeria Kharchenko | November 1, 2023
Old windows can cause high energy bills, but also can lead to health hazards such as moisture and mold.
Paige Yates | November 1, 2023
We all want our homes to look nice, but major renovations can be expensive. Fortunately, tere are plenty of easy and affordable projects that can make your home look b… Read more
Mallory Hanig | November 1, 2023
As temperatures drop and heating bills rise, you may be wondering if now is the time to replace an aging, inefficient HVAC system.
Monthly feature
Taylor Yates | November 1, 2023
Boston is one of the oldest major cities on the East Coast, home to many charming historic homes ripe for modern touches. However, not all of them are living in the 21… Read more
Paige Yates | October 1, 2023
Does extra space actually give you the biggest bang for your buck?
Mallory Hanig | October 1, 2023
First impressions matter, whether it's a first date or a job interview. The same principle applies when selling your home.
Kim Pampanga | October 1, 2023
The adoption of smart home technology, which uses of the Internet of Things (IoT) within the home, has surged for homeowners, investors, and property management compan… Read more
Monthly feature
Taylor Yates | October 1, 2023
In the bustling city of Boston, where historic charm meets modern living, real estate is a hot commodity.
Valeria Kharchenko | September 1, 2023
As the autumn wind graces the cobblestones of Boston, it's a great time to welcome the charm of the spooky fall season.
We bring decades of experience to transactions large and small and treat every client with the high level of service they deserve. Whether your goal is to build, buy, or sell a home, I would be honored to serve and help you with your real estate needs!