Having one’s home renovated is far and away one of the best ways to increase property value. For every dollar that you put into quality renovations, you should get at least two back. At least that’s about the average in a healthy, thriving housing market. Of course, markets are volatile and very unpredictable. You just never know when it’s a good time to go through with renovations. 2020 was the perfect example of this. Although the market was very healthy to start the year, we were smacked with a global pandemic, and the market went through some serious turmoil. Though barring something as unforeseen as a viral outbreak, is there anything you can do to ensure a payoff for home renovations?
Actually, when speaking about fixing up the home, data shows that luxury home renovations are actually the best investment to make, at least insofar as they’re safer investments that are going to pay off in more ways than one. High-end, luxury renovations undoubtedly cost you more money on your end, so you may want to know what’s so special about them that they pay off. Well, here are a few ways that these renovations can pay off for you.
Different Ways High-End Renovations Increase Value
Appealing to More Buyers
The first way luxury renovations pay off better than basic renovations is that they appeal to far more buyers. Potential homebuyers are about to sink hundreds of thousands of dollars into a home, and so what they want is quality. They also want things that they know are going to last, and they want a move-in ready home that they will not have to renovate themselves. High-end renovations really stand out as brand new and high-quality to potential home buyers. When they see these luxury renovations, like high-end kitchen appliances and different fixtures, etc, it appeals to them because the home just comes across as higher quality. This is a very strong selling point, especially in markets that are otherwise unsteady.
Speaking of the quality, it has to have staying power in the minds of potential buyers. Imagine a home buyer goes into a home and sees that it looks good. It’s all shiny and new and really appealing. However, they see that many of the fixtures are low-end and were put in to cut costs. In the mind of a home buyer, this was done by the homeowner to actually cut corners, and all they’re thinking is that they will have repairs and replacements to make in only a few years. They know that the low-end stuff isn’t going to last, even if it looks nice and new. This isn’t an issue with luxury home renovations. The potential buyers know that the materials will last.
A Better Aesthetic
While the low-end stuff can look decent and new, nothing looks as good aesthetically as the high-end stuff. That’s just part of why it costs a lot more. You definitely get what you pay for. You can get the shiniest, whitest new tub and shower combo on a discount that you can find, but you will always be able to tell it was a bargain choice when juxtaposed against the high-end models. You can see it in the craftsmanship and certainly the aesthetic. The luxury renovations, using high-end goods, simply demand a much higher price, and they look a lot better and thus command a higher asking price.
Huge Equity Boost
One reason that many people decide on home renovations in the first place is to increase their equity, not necessarily to sell their homes. Many people will put in the time and money to perform luxury renovations, and then have their home appraised and adjust their mortgage accordingly. This gives homeowners an equity boost, which means that their home’s worth has increased their overall net worth. Going with luxury renovations here is going to pay off a whole lot more than shopping your renovation materials on a bargain. That’s just the nature of the beast.
If you’re going to invest in home renovations, then you might find it more fiscally advantageous to go with the high-end stuff. It will pay off better for you in the long run.