Home renovations are a significant investment, especially in luxury markets like Atlanta, where homes often range between $1.5 to $4 million. As Austin Lineberry, the owner of New River Building Company, shared in a recent interview with Aaron VanderGalien, two critical components can make or break the return on investment (ROI) of a renovation: thorough planning and incorporating outdoor living spaces.
1. The Importance of Planning in Renovations
Austin emphasizes the necessity of meticulous planning. According to him, “A lot of people go cheaper on plans and don’t emphasize that part, but it’s crucial for any building project.” Homeowners often overlook the importance of comprehensive architectural and land planning, which can lead to mistakes, delays, and higher costs.
- Investing in quality architecture: Spending more on detailed plans ensures smoother execution and minimizes the chance of costly rework.
- ROI on detailed plans: While some homeowners may balk at the cost of hiring top-tier architects, Austin argues that in markets like Atlanta, better planning can directly increase the home’s resale value. Homes with custom architecture hold their value better and sell faster than those built from stock plans.
2. Outdoor Living Spaces: More Than Just a Luxury
Outdoor living has become just as important as indoor spaces
Outdoor living is not just a trend; it’s a significant factor in home desirability and resale value, especially in regions like Georgia where year-round outdoor enjoyment is possible. Austin states, “Outdoor living has become just as important as indoor spaces,” with features like outdoor kitchens, fire pits, and even cold plunge pools now seen as essential amenities rather than optional extras.
- Appraisal and market value: In many cases, outdoor spaces are appraised and valued highly by potential buyers. Investing in a patio, pool, or landscaped area can result in a significant increase in property value.
- Design trends: Features such as astro turf lawns, feature walls, and automated screens are rising in popularity, allowing homeowners to create seamless transitions between indoor and outdoor spaces.
3. Real-World ROI Scenarios: Stock Plans vs. Custom Designs
Austin provides examples of homes designed with stock plans versus fully custom designs. He suggests that custom architecture almost always commands a higher price point. Homes designed with local topography in mind—what Austin calls “letting the lot speak to you”—often flow better and create a more aesthetically pleasing and functional space.
- Case study: Two homes, both valued at $2.5 million, will sell differently depending on the architectural investment. A custom-designed home could easily sell for $50,000 to $75,000 more than a stock plan due to its unique appeal and functionality.
4. Outdoor Amenities: When to Invest and When to Hold Back
Outdoor living is often a guaranteed ROI booster, but as Austin explains, there’s a point of diminishing returns. For instance, adding a basic pool or well-designed patio can yield more than 100% ROI in certain markets. However, excessive personalization—such as over-the-top fire pits or elaborate water features—may not always provide a one-to-one return.
- Smart investments: Fireplaces, infrared heaters, and sound systems are now standard in luxury outdoor spaces and offer high returns on investment.
- What to avoid: Avoid going overboard with features that may only appeal to niche buyers, like massive rock structures or overly customized pools.
5. The Atlanta Market: Catering to Luxury Buyers
Austin notes that the North Atlanta suburbs are affluent areas where buyers are willing to pay for luxury features, particularly in outdoor living. Homeowners here often prioritize high-quality materials and craftsmanship, knowing it will pay off when it’s time to sell.
- Outdoor living in high demand: In some cases, smaller interior square footage is traded off for expanded, luxurious outdoor spaces, which are increasingly seen as essential by homebuyers in Atlanta’s hot climate.
Conclusion:
Renovations are not just about transforming your home; they are also about making smart financial decisions. As Austin’s insights show, investing in detailed planning and incorporating outdoor living can significantly boost your home’s value, especially in luxury markets like Atlanta. Whether you’re updating your home to enhance your lifestyle or preparing to sell, taking the time to plan properly and invest in outdoor spaces is key to maximizing your renovation ROI.
Photos courtesy of New River Builders
