06 Dec Improve Home Value and Maximize ROI Through Remodel and New Builds
Top 3 Ways to Improve Home Value and Maximize ROI from Design Projects!
Whether you’re working on a new build or remodel, increasing your home value is essential. Read on to learn how!
Let’s Talk About Home Value
Finding interior design techniques that improve home value and maximize ROI is something I do on every project. The reason is that the money spent on any home project should have some level of investment value. And although the phrase “maximizing ROI” is most often associated with spec homes, it actually appeals to discerning homeowners from every background.
If you look carefully at my portfolio, you’ll see that spec homes are not something I do frequently. In fact, my true passion is working with a discerning clientele who want to tailor their space to fit their lifestyles. Because I understand the demands of the markets where I work and the needs of my clients, I help them create spaces that fit their life and add home value at the same time.
To maximize home value and ROI for my clients I use the following:
- My experience working with luxury spec and lifestyle-tailored homes,
- My knowledge of luxury projects,
- Information about the local and global real estate markets.
Keep in mind that when I speak about ROI, I mean return on your financial investment. While most of us want our homes to look like a luxury custom home, sometimes it the expense cannot be recouped. In addition, there is a huge difference in expectations between a house listed for $3 million and one listed for $15 million. Everything from the view, value per square foot, bedroom count, design and construction materials, and overall visual aesthetic changes based on the home’s value.
Additionally, even a $15 million spec home has limits. Designing a home with marble throughout may add value, it may not make the house more marketable and will likely not produce the desired return on investment. In addition, the time spent waiting for the buyer who values this unique decoration method may prove excessive.
Balancing Home Value and ROI
Ultimately, like everything else we do at Brana Designs, it’s about finding balance. You may not add a new pool, spa, and steam room, or redo the kitchen with calacatta marble if you only spent $2.5 million. But if you intend to sell a home for $3.5 million you should consider upgrades and materials that fit the market expectations.
Of course, this is assuming that the basics are covered, including:
- re-coloring interior and exterior walls,
- updating windows,
- refreshing knobs with handles on interior doors,
- upgrading bathrooms and kitchens,
- trimming bushes,
- and updating heating, plumbing, and electrical systems
Now let’s get into the top 3 ways to improve home value and maximize your ROI.
Top 3 Ways to Improve Home Value and Maximize ROI
Adjusting the Floor Plan.
Open floor plans optimize space. We talked about it in this post on creating the best of the best multifunctional homes. Ideas include transforming a cellar or basement into spa with a sauna and steam room, a home cinema, or even adding extra bedrooms. In addition, we discussed ways to add more square footage by removing walls. This additional square footage also improves the visual aesthetic by creating larger spaces.
The openness enhances the visual appeal. Creating open spaces within a living space and maximizing the potential of unused rooms, which most commonly include guest rooms and offices, expands the use of the square footage. It also integrates working and living activities and builds connections where there was once separation.
The challenge with aesthetics in design is that they are ever-changing. This means that what works one year may not work the next, especially if you are working with spec homes that you want to sell as soon as you finish them. Unfortunately, as I write this, the trend in Orange County is a farmhouse. If you know anything about me, you know how much I curse this trend.
That said, if you’re building a home that is going to be on the market quickly, AKA a spec home, you should focus on building it quickly before the trend passes, or leaving the design elements to the end when you can see if the trend is still in vogue.
One way to do that is to keep the current trend in mind, but in a way that it can be easily switched to something else. If you’re only looking to add extra value to your home, forget the trends, and stick with a comfortable, luxury modern look. Incorporate clean elements, natural materials, from wood to marble, and luxury looking finishes.
Ultimately the best approach to contemporary homes includes clean lines and flexible, highly functional interior spaces that make a strong architectural statement.
Add Smart Technologies.
Smart-home technologies are common real estate upgrades and have become essential to be competitive in today’s market. The reason is that smart-anything (door locks, thermostats, lighting, and even solar panels) provide security and have tangible savings tied to them.
Smoke detectors know the difference between cooking smoke and smoke from something more concerning.
Solar panels can yield savings between $1000-$2000 per year in energy costs.
Smart-moisture sensors detect leaks which can save thousands in repair costs and mold remediation.
Thermostats and climate control systems enabled with smart technology adjust heating and cooling and learn from your habits. They leverage smart vents to adjust air flow to rooms. This can be timed, scheduled, or on-demand.
Smart lighting savings over 60% on lighting costs.
Refrigerators enabled with smart technology regulate temperature by food type and provide a bird’s eye view of what’s inside while you’re at the grocery store.
Smart security systems activate floodlights, capture and store video, and provide alarms for sound and transmission to law enforcement.
The savings are just the start of the value. Smart-homes have a cool factor that can give them an advantage over others without the technology. These listings sell faster than homes of similar price per square foot because the upgrades stand out. For this reason, smart home features hit both home value and ROI goals.
When you make the investment, be sure to highlight the smart features. Appliances with the EnergyStar® ratings are always for the money they save.
Choosing Someone to Handle the Interior Design and Balance Home Value and ROI
If you plan to sell the property but don’t know what you need, your best advisor should be your real estate agent, who specializes in your specific market. No, it may not be your friend or neighbor, I mean, a professional. Keep in mind, real estate agent may know about trends and market, but they are not interior designers.
If you plan to sell the property and just need a furniture (yes its a must), stagers may be quite affordable option. But keep in mind, the furniture is barely livable on, as it’s not super high-end quality and it probably already been used in many other homes.
If you are building/remodeling your own home and you plan to live for some time, I am here to help you with all your design needs, and we will maximize the aesthetic potential & value together. Just get in touch.