How Can I Maximize Resale Value When I Remodel My Home?

While most homeowners choose to remodel their homes for quality-of-life reasons, almost everyone wants to be mindful of how the remodel will affect the resale value of their homes.

Balancing their own needs and desires as well as those of their future home buyers is something that many homeowners struggle with.

We recently completed a kitchen remodel where, we believe, the homeowner did a fantastic job of finding this balance. We would like to share his story. Hopefully, it will serve as inspiration as you plan your own home remodeling projects.

How Much Return Of Investment Can I Expect From A Home Remodel?

We have written on the subject of home value as it applies to remodeling projects before. So, we will just touch on the basics here. You can read the full article here: How will a remodel affect the value of my home?

Long story short, remodeling projects almost always cost more to complete than the value they add to a home. Kitchen remodels and bathroom remodels usually have a better return on investment than other types of home remodels & repairs. But, from a financial perspective, you will almost never get all of your remodeling money back when you sell your home.

We don’t want to say that the house-flipping shows on TV are lying, but all of the data we have seen confirms that pre-sale remodeling for profit is an incredibly risky game.

This is why we advise people to remodel for quality-of-life reasons, not return on investment reasons.

What Remodeling Decisions Can I Make To Maximize My Home’s Resale Value?

Keeping what we just said in mind, it does make sense to be aware of resale value when you are remodeling.

Our recent client’s situation is a great example of why this is often important.

Our client bought a home in the beautiful seacoast region of New Hampshire a few years ago. He enjoys it a lot and plans to live in this home for at least another ten years. He expects that he will eventually want to sell it and move to a different home.

So, when he came to us to discuss remodeling his kitchen, it was important for him to have a kitchen that meets his needs and reflects his style, so that he can enjoy it for the next ten years or so of his life in this home.

Because the kitchen would still be in good shape, and not yet at the end of it’s lifespan when it came time for him to sell his home, it was also important to him to get a good return on his investment.

As he planned the project, he asked us to guide him in making the best decisions he could to find the balance between these needs.

Here is what we advised him to do:

Don’t change the layout

Knocking out walls to create a spacious kitchen or luxurious bathroom is great fun and an awesome idea for a TV show, or for your forever home. But, it is ridiculously expensive! Almost every time we need to change the placement of walls or plumbing fixtures, it adds thousands or tens of thousands of dollars to the budget.

So, if resale value is important, only change the layout if it is unusable or awkward as it is.

Avoid both builder-grade and high-end products

The first thing we advised him was to choose quality fixtures, finishes, and accessories, but to stay away from high-end products unless they were going to have a big impact on his quality of life.

Cheap, builder-grade, products will often wear out and fail prematurely, which will negatively affect his quality of life as well as his home’s resale value. So, it is wise to invest a couple more dollars in products that will last.

High-end products, on the other hand, will last. But, they will cost considerably more than a quality-grade product with equal durability and longevity.

Wherever possible, use stock products

There is an incredible selection of products out there, and we love obscure, one-of-a-kind pieces as much as the next person. And, as craftspeople, it pains us to say this, but you will get a lot more bang for your buck with mass-produced products.

So, go ahead and splurge on a couple of artisan pieces that will make you smile every time you walk into the room. But, try to stick with common, quality products for most of your selections.

Stick with neutral colors and timeless styles

As much as you don’t want you don’t want your new space to be boring, your potential buyers don’t want it to be too bold. Sure, some buyers will love the trendy choices you made, but others won’t. Using neutral colors and timeless styles in your home is a way to ensure that everyone is happy, and as many people as possible will be interested in buying your home.

Make sure that you love it

It is easy to get caught up in worrying about resale value and what future buyers will want to see in your home. This is so easy, in fact, that we often see homeowners compromise their own quality of life by choosing “resellable” products instead of the products that bring them joy.

It’s your home, you deserve to have what you want. If the next owner doesn’t like it, they can always remodel. I mean, you’ve got a great contractor to refer them to for that work, don’t you!?

Don’t you!?

Oh, never mind!

Seriously, though. As long as you stick with the principles we have laid out above for most of the choices you make in your project, it’s okay to splurge with a couple of unique, expensive, or bold elements just for you. After all, this is your home, too. You should love it!

How To Maximize Resale Value With A Kitchen Remodel

Our recent kitchen remodel client did a fantastic job finding the balance between meeting his needs and maximizing the resale value of his home.

Here is what he did:

He didn’t change the layout!

Our client didn’t like the peninsula in the original kitchen layout, so he asked us to remove that. But, he minimized his investment by making sure the new layout allowed all of the fixtures and appliances to stay in their original positions.

He avoided both builder-grade and high-end products.

Our client did a great job choosing quality products, and he only splurged on the products that were going to have a big effect on the quality of his life. He chose quality-grade flooring, cabinets, countertops, backsplash, sink, & faucet. He spent a couple of extra dollars on a pot filler and some really nice appliances. These splurge items were a nice quality-of-life upgrade, but they weren’t extravagant.

He chose stock products.

Our client searched the internet for inspiration, but when it came time to select the products for his project, he chose items that were common, proven, and readily available. Our cabinet supplier worked with him to utilize stock cabinets for this build. He saved $15k-$20k on cabinets alone by utilizing stock cabinets instead of custom cabinets!

He (mostly) stuck with neutral colors and timeless styles.

Even as bold colors are starting to become more popular, our client kept the colors in his kitchen neutral, and timeless elements like white cabinets and a subway tile backsplash.

He made sure that he loved it!

As important as the resale value of his home is to him, our client still chose to make it his. He had us add a pot filler to make cooking pasta easier, he chose upgraded appliances that he will enjoy for years to come, and he decided to get a little bit of fun with a really awesome randomized hex tile floor!

When it comes time to sell his home, some buyers will see the value in these upgrades and others won’t. But, for the ten years or so before that happens, he is going to enjoy these elements every single day!

We are so proud of the choices our client made on this project! He did an awesome job finding the balance between creating a beautiful functional space he will enjoy for years to come, and being mindful of his investment and the resale value of his home!