April 21, 2023

IF YOU WANT TO INCREASE YOUR BOSTON HOME’S ASSET VALUE – REMODEL THESE THREE AREAS 

How to invest in one’s home is a nationally trending topic of interest at this time. 

We have been in business in Boston for nearly twenty years and have Architectural Design Build clients across Chestnut Hill, Newton, Wayland, Weston, Wellesley, Beacon Hill, Back Bay, Somerville, Cambridge as well as throughout the Greater Boston Area and Boston’s Metrowest. 

Of late I’ve been asked by friends, clients, and potential clients alike for my thoughts on how to invest in a Boston home remodel in a way which is financially sensible, rewarding, and increases the overall asset value of the home. 

(To be clear this is meant as a sharing of my own thoughts, opinions, and communication based on experience and not legal or financial advice.)  So that legal disclaimer aside – I have seen home designs and remodels done in an aesthetic manner with innate brilliance resulting in a hub of familial joy and expansion.  I have also seen poor or wrong-headed planning occur, resulting in extravagant spending on homes that did not result in a corresponding increase in asset value and left the clients with both wasted funds and a bad taste in their mouth.  This is never fun. 

Based on my experience of what works and what does not, I wanted to provide guidance here on key areas I suggest focusing on as regards scope if one wishes to maximize the asset value of one’s home when planning and embarking on a significant home remodel in Boston. 

These are the three areas I suggest focusing on:

1 A HOME ADDITION OR AN ADU

Invest in the creation of an ADU or home addition to your Boston home with confidence.  

Beautifully planned and executed, such an investment in a well-planned home addition often has a marked impact on both the overall feel of a home as well as the tangible metrics of overall square footage and total bed/baths when considering resale or refinancing. 

From my experience a home addition is by far the number one remodeling vehicle to add value to an existing Boston home.    

I would then also include in this category the finishing of an unfinished attic or a basement, but to a lesser degree – the rule of thumb for underground space is to typically cut in half the SF to estimate the increase in value. 

Essentially, a project that is adding square footage to your Boston home is a direct way to add equity as additional new square footage is a metric that translates into immediate value.   

When a home is sold the key factor is its size – followed by the number of beds/baths.   

In most of the Boston Metrowest towns we provide architectural design build services to, the square foot cost of a home addition is equal to or lower than the cost of the value of that square footage on the market. 

Thus, a Boston homeowner in such areas can often immediately increase the value of his or her home at or beyond his level of investment when adding a tasteful home addition which increases the usable square footage of the home.

Case in point, the average cost of a single-family home in Brookline, Cambridge, or Weston is over $700 a square foot – whereas if you look at our NEDC 2023 Cost Guide the typical cost for an addition is generally under this amount. 

This can be seen here, in an excerpt from our 2023 NEDC Cost Guide: 

Estimated Cost of Construction, Additions: 

$450 – $750+ per square foot  

Example: A Homeowner wants to build a 200 square foot addition to create a new bedroom.  

Take 200SF x $550 per SF for mid to high-end materials/tastes.  

$110,000 

Download Our Brand New 2023 Cost Guide

2023 (2)

A Few Examples of Recent Home Addition Projects:

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2 – AN ENSUITE BED AND BATH – THE HOME REMODELING HACK FOR IMMEDIATE INCREASE IN VALUE. 

I would consider an ensuite bed/bath as the next remodeling option to increase the asset value of your home.  

As stated above a new ensuite bed and bath immediately moves the dial on these senior factors looked at when a home is priced and listed – i.e. size of overall square footage, and the total number of bed/baths.  

We can often couple this type of project with the above home addition – finishing an attic and situating the ensuite/primary/owners/master suite there.  With a Cape-style home we are very often able to add an ensuite bed/bath by creating a dormer at the front of the second floor and optimizing all the space lost in the eaves – converting the home from a 2 bed 1 bath home into a 3 bed 2 bath home. 

This immediately increases the market value of the home. 

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3 – THE MASTER BATH/ALL HOME BATHROOMS 

There’s nothing like a master bath that induces the tranquility, sensory calm and soulful bliss which accompany a visit to your favorite spa. 

During Covid I observed many homeowners invested in their master bed and baths proactively along the lines of self-care, wellbeing and health — both physically and mentally.  Having an aesthetic, sustainably designed master bath as a retreat of sorts within one’s own home became an investment in self—a personal sanctuary steps from the master bedroom.  We have found this to have universal appeal. 

Natural stonework, double vanities, stand-alone bathtubs, and walk in showers with immersive rain fixtures are all elements that have become popular with our Boston client’s master baths. 

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Rounding out the project with an upgrade of your home’s guest/family bathrooms and powder rooms is another sensible move which will increase your home’s worth while providing an improvement in aesthetics, comfort and quality of life. 

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The above are key spaces within your Boston home, and designed and remodeled tastefully will consistently boost your home’s asset value. 

I hope this helps! 

Feel free to reach out to me with any thoughts or questions. 

Love,

Dave

dave@nedesignbuild.com

Published April 21, 2023 | By
 

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