Top Additions To Improve the Value of Your Home

Making the right additions to your home can significantly boost your property's worth. In this blog post, we will explore the best home additions to improve your home's value, how to choose the right addition for your needs, and important considerations before starting your renovation project.

Why Does Home Value Matter?

Your home is a valuable asset, and understanding its overall worth is beneficial. Even if you are not anticipating selling your house in the near future, living in a high-value property can impact you in the following ways:

• Increased home equity: Increasing your property’s value with an addition increases your home equity and allows you to easily finance any renovations.
• Better financial stability: When your home's value increases, your overall financial stability also improves. A higher home value can provide a safety net for unexpected expenses or future investments.
• Sell for a higher price: When it comes time to sell your home, its value will play a significant role in determining how much you can ask for it. A higher home value means more profit for you as the seller and can attract more potential buyers.
• Enjoy your property more: Home improvements also make your property a more comfortable and functional space for you and your family.

What Determines Home Value?

Several factors contribute to your home's value. The location is perhaps the most significant factor. Proximity to good schools, public transportation, and shopping centers can increase value. The square footage, number of bedrooms, and layout of your home also matter. Larger homes with efficient layouts on a larger lot often fetch higher prices.

Additionally, the condition and age of your home play crucial roles when determining home value. Newer homes or well-maintained older homes with little need for repairs tend to have higher values. Finally, market conditions influence home value. When supply and demand for housing fluctuate, it can either increase or decrease selling prices, sometimes not in the seller’s favor.

Upgrade vs Addition

Before you start planning, differentiate between an upgrade and an addition. An upgrade usually involves improving existing features, such as installing new windows or updated appliances. Upgrades can enhance your home's value but typically do not add square footage.

On the other hand, an addition increases the actual living space in your home. This could be adding a new room, expanding an existing one, or even adding a new level to your house. Although additions tend to have higher upfront costs than home upgrades, their return on investment (ROI) can be significant for homeowners selling their property.

Home Additions with the Best ROI

Now that we have discussed the importance of home value and what factors help determine it, let’s review the top additions to increase home value. We will look at each addition’s cost vs. value so homeowners can anticipate their ROI.

Finished Basement

Finished basements offer many benefits to homeowners, including an increased home value. This upgrade turns an otherwise unused space into functional a living area with air conditioning, electricity, and plumbing. Finished basements are often utilized as extra common areas or can be constructed for a certain purpose, such as a home theater. On average, a finished basement offers sellers a 70-75 percent ROI at sale.

Garage Addition

If you live in an older home without a built-in garage, consider investing in adding this additional space. It provides secure parking and extra storage or can even be turned into a workshop. A homeowner’s ROI will depend on the size of the garage and whether it can store one or two vehicles. Because the price of a garage addition can widely vary, homeowners can earn back between 75-85 percent on their initial investment.

Master Suite Addition

A primary bedroom suite addition can transform your home. The additional bedroom provides a private retreat within your house, complete with an en-suite bathroom and walk-in closet. This addition can be a major selling point, attracting buyers looking for luxury and comfort. Depending on the building materials, homeowners can recuperate 55-60 percent of their investment.

Deck Additions

Adding a deck can enhance your outdoor living space. It provides an area for relaxation, dining, and entertainment. Decks are particularly popular in regions with pleasant weather, making them a sought-after feature.

A well-designed deck can significantly boost your home's resale value, earning back upwards of 80 percent of your initial investment. However, the ROI of a deck addition can vary widely based on its size and whether it is built with wood or composite materials.

Sunroom

A sunroom addition offers a bright, airy space that can be used year-round. Sunrooms are versatile, serving as reading nooks, playrooms, or even home offices. They can be built with energy-efficient windows, providing natural light and potentially lowering energy costs. The average sunroom addition can return 45-50 percent of a homeowner’s investment upon a sale.

How To Choose a Home Addition for You

While adding value to a property is enticing for any homeowner, considering whether a home addition would be of value to you and your household before committing to the project is important. These are three considerations to take for choosing the right home addition for you.

Budget

Your budget is a crucial factor in deciding which home addition to pursue. Consider the costs of materials and labor, and account for any unexpected expenses. Sticking to a set budget can help you maximize your ROI.

Household Needs

Assess your household's needs before deciding on an addition. Do you need more living space, a private workspace, or additional storage? Tailoring your addition to your and your family's requirements ensures that it will be functional and worthwhile.

Permits and Regulations

Before starting an addition, check local permits and regulations. Ensure that your project complies with zoning laws and building codes. Obtaining the necessary permits can prevent legal issues and ensure your addition is safe and up to standard.

Investing in the right home additions can significantly boost your home's value and enhance your living experience. If you're ready to take the next step, consult with a home renovations professional in Lexington, Kentucky, at Distinctive Design Remodeling. We specialize in crafting expertly built and designed room additions that you are your family are sure to love. Contact us today and browse our blog for more helpful resources on home additions.