Home improvements that pay you back are important to homeowners in Montecito, Hope Ranch and Santa Barbara where those upgrades can cost a bundle. If you’re considering your options, you should keep in mind that according to the National Association of Home Builders, almost $200 billion a year is spent in the U.S. on home renovations. There are certain home improvements that yield great payoffs far beyond increased comfort and enjoyment. Some improvements will actually boost your home’s marketability and resale value.
So, let’s look at the home improvements that pay you back and how to properly prioritize them. One rule of thumb is to consider how the project will affect the value of your home in the future. For example, kitchen and bathroom updates can be costly, but the return on your investment ranges between 75 to 100%. A high-end siding replacement will also raise your home’s purchase price. However, things like the addition of a sunroom offer poor long-term payoffs.
Here are two factors that affect resale value:
- Location. Here’s an example: California is one of the three most popular locations for homes with pools, resulting in a market value increase by about 7.7%. Conversely, in cold climates, a swimming pool may have no value at all.
- State of the market. Pay close attention to the market to see if you will get a good return on your investment. A Realtor with superior local market knowledge can help you evaluate the market before you list your home.
If you are looking to buy a new home in Montecito or any of the surrounding communities, please give me a call at 805.886.9378 or email me at Cristal@montecito-estate.com. With more than 25 years in the industry, consistently rated in the top 1% of Sotheby’s International Realty nationwide, I have the experience, contacts and enthusiasm to help both sellers and buyers. Be sure to check out my website to see what’s on the market today.