Some of these ROIs involve your own personal enjoyment of, say, a new kitchen or back deck, while the others can be seen in cash—which become evident once you put the house for sale on the market.
For example: A minor kitchen remodel update costing around $20,000 can present an 81.8% return on investment.
The Inside Scoop on Selling Luxury Homes
You may be flipping a home for resale or you are a happy homeowner preparing for a custom addition to your property.
No matter the reason, different upgrades will offer different Returns on Investment (ROI) for your luxury home remodeling or construction project.
Be a Luxury ROI Strategist
If you’re reading this article, you are likely remodeling your own home or planning for someone else’s. Here are some expert tips for your specific situation. Remember to think ahead on the long term implications of any remodeling activity. Are you remodeling for profit, enjoyment, or a little of both?
We’ve interviewed luxury real estate experts in La Jolla, Team SchuCo and Serafini Buettner Group, for more details on what home buyers are looking for in San Diego. This information will help you make more educated decisions when remodeling your luxury home for a return on investment.
Ask a La Jolla Luxury Realtor About Remodeling for ROI
“People will make quick assumptions of your whole home simply based on the curb appeal, including the front door. Crisp, sharp, and clean landscape designs create immediate positive emotions for the rest of the home’s interior/exterior.”
– Teresa Schumacher of La Jolla Luxury Real Estate Team SchuCo / Berkshire Hathaway HomeServices California Properties
Tips for Customizing Your Home
You are customizing your “forever” home but you want to make those remodeling choices count when the time comes to sell. Think about what you can do to add value and comfort to your home at the same time.
This is the most common situation. A homeowner may want to customize their own home but they want to maximize the value at the same time. Maybe you know what you want your upgrades to be, but you just want to make sure that those decisions will hold value.
Tips for Flipping Your Home
You are buying a home to flip it and resell, quickly.
“Home buyers intending to remodel or redesign can make a tremendous profit renovating a fixer-upper property. In the case that one is looking for a fixer-upper, you want to look at location first and then resale value after about 5-7 years.” – Team Schuco
“Many buyers in the luxury category look for location and prefer to buy a home that is older and needs remodeling so that they can remake the home into a home that is completely customized to their specific needs and tastes.” – Serafini Buettner Group
Luxury Homebuyers Want a Turnkey Home
Are you surprised? When targeting the luxury real estate market, you have to get inside the mind of a luxury home owner. This means glamorous, wow factor, and in general out of the ordinary. It can also mean a classic yet sophisticated style.
Luxury home buyers in San Diego likely already have multiple homes and are looking for a vacation home in one of their favorite places on earth.
Serafini Buettner Group says, “The buyers that look for remodeled homes in the luxury category are often second and third homeowners who want turn-key and place a value on well-designed, state of the art homes that they can simply purchase, many times even with all the furnishings.”
“Typically, a turn-key/move-in ready home is highly desired. Most home buyers we come across are looking for a turn-key home, [we] rarely see one excited to renovate and take on a project… maybe one out of every 10 home buyers.” – Team Schuco
We Are Luxury Home Remodeling Experts
When many think of a luxury home remodel, the first thought is usually a big farm house-style kitchen with copper cookware hanging above the restaurant quality range.
The second thought is usually a claw foot tub with double sinks. Kitchen and bathroom upgrades definitely present one of the bigger lifestyle changes, but there are other small upgrades you can make that’ll do double duty.
Of course, here at Eco Minded Solutions we always lean towards environmentally conscious and sustainable choices when we provide luxury home remodeling for ROI. Let’s discuss your project in detail – Contact Us for a Design Consultation
Whether remodeling your home for a higher return on investment or just to live a better life of luxury, we have all the tools you need to improve your home. To see how you can upgrade your home from ordinary to extraordinary:
Call us for a free luxury home remodeling consultation
The 20/20/40 Luxury Home Rule
The experts at the esteemed Serafini Buettner Group in La Jolla have given us much insight into luxury tactics. When asked, “Which areas of the home are most valued in a luxury home?”
Their expert response, “In luxury real estate, our Group applies the 20 | 40 | 40 Rule. Twenty percent equates to the front exterior of the home, gated, understated, elegant. Forty percent plays to the interior of the home: finishes, design, livability, and flow. The final forty percent is attributed to the exterior living spaces: outdoor kitchens, pools, spas, views, and privacy.”
Keep this tip in mind, and your luxury remodeling will take on an entirely new perspective in regards to functionality, design, and ROI.
Best Luxury Home Remodeling for ROI
Below, we’ve assembled a guide to these ROIs, so you can weigh your own pros/cons of a whole home remodel, view our best sustainable luxury tips and ideas, and then decide on the best follow-through for your home.
– Team Schuco
As we mentioned before, the kitchen remodel offers you and your family a tangible benefit for the time you spend living there.
Your straight-from-Pinterest dream kitchen models took an ROI hit during the recession, however a minor kitchen remodel update costing around $20,000 can present an 81.8% return on investment.
These updates can include cabinets, drawer fronts, countertops, flooring, and even new appliances—the perfect ingredients for Sunday breakfasts and dinner parties with the neighbors. We recommend a modern kitchen design for your home.
“Luxury home buyers are looking for the epitome of culinary architecture and restaurant grade appliances to ensure a gourmet meal can be prepared at anytime. Most luxury home owners don’t cook themselves so, they hire well known chefs to cater private parties and events and make sure the kitchen is stocked with the latest and greatest appliances and gadgets.”
– Team Shuco
Adding a custom bathroom has very tangible benefits, especially if you have a couple little ones or like to entertain guests.
Adding a luxury bathroom en suite for $78,000 can bring 53% ROI, while a remodel can recoup 57%.
Bathroom design ideas can include anything from a whirlpool tub and heated floors to additional sinks and custom fixtures.
Who doesn’t love dining al fresco or staring up at the stars with a glass of wine after the guests have gone home?
Adding a deck expands your living space without adding to the footprint of your home, which is a positive, common theme when it comes to good ROIs.
Adding a deck typically costs between $8-$30 per square foot, as opposed to the $150-$300 per square foot that comes with a full home addition. The ROI is similarly favorable, clocking in at 80.6%.
Attic Bedroom Remodeling
Much like adding a deck, a bedroom addition or extension with previously unused space is an excellent choice. These remodels typically bring a 79.3% ROI and the benefits can be felt with out-of-town guests and slumber parties.
Little Changes That Make a Big Difference
Sometimes it’s the seemingly insignificant details that really work to raise the value of your home during a remodel. These minor adjustments will maximize your ROI with a minimal investment of time and money.
Curb appeal is a huge factor in ROI. And replacing your siding with fiber-cement or foam-back vinyl can give your whole house a huge facelift—along with 73-80% back on your investment.
At roughly $3,500, a new insulated garage door isn’t a whole lot of cash down and the ROI can be as high as 70%.
The ROI on these fluctuates, depending on the public’s perception of need.
Back in 2011, the ROI of a backup generator was only 47.5%, but after Hurricane Sandy in 2013, that number jumped to 67.5%. However, these numbers don’t quite factor in peace of mind or the ability to keep emergency phones charged during a storm.
Little things can pack a big punch in terms of curb appeal.
Boasting a low initial cost, a new front door can bring up to a 98% ROI.
PROJECT EXAMPLE – Adding simplicity with texture, the grain in this front door becomes the focal point for this home. View Full Project Gallery.
Home Remodels to Shy Away From
Most importantly, remember that not all remodels are created equal when it comes to ROI. Think twice before investing on these lesser remodels – it may be more trouble than it’s worth.
Though many people do have the luxury of working from home, mobile technology has turned a remote workday into typing reports from the comfort of your couch, not at another desk.
Because of this, the appeal of a home office has lost its allure to potential buyers—no need to clutter a room with filing cabinets and printers when you have cloud technology and email.
Though everyone loves a sun soaked room, these rooms are difficult to heat and cool. Because of these challenges, you’re better off building a deck or patio.Request a Consultation