If you are looking for ways to increase the value of your home, home renovations can be an effective way to add value and make your home more appealing if you’re planning to sell some time soon.
We have renovated our home, as well as flip and investment properties over the years and we’ll suggest a few that could provide you the best return on investment.
Is Renovating a Good Investment?
It is likely to expect a 70% return on investment (ROI) on average by doing certain home renovations. Remodeling Magazine compared the average costs for 23 remodeling projects with the value those projects retained at resale in 150 U.S. markets in 2023 and the top 5 renovations that recouped the most costs were: HVAC, garage door replacement, manufactured stone veneer, entry door replacement and siding replacement.
However it is important not to solely consider the recouped cost, but also the trends and location of the property. Also in our opinion, there are certain home renovations that are sure to bring value in most circumstances and we’ll share them below.
Which Home Renovations Give the Best Return?
Many people consider the kitchen to be both the “heart” of the home and a major factor in home buying decisions. So needless to say, upgrading your kitchen can make a big difference. Particularly updating cabinets, countertops, appliances, backsplash and lighting will give your kitchen a fresh look while ensuring a return on investment.
In our opinion this will also be one of your more expensive renvoation projects but is typically worth it if the end result is not too far outside of the norm of homes in the area.
Upgrading your bathrooms is another effective way to add value to your home. Consider upgrading the fixtures, replacing the tub or shower, and adding new tile or flooring.
During one of our most recent flip projects, we added new tile flooring as part of the bathroom renovation. Here’s our step-by-step for adding tile flooring.
Enhancing your home’s curb appeal is a must to both draw people in and ensure a solid property value. This would mean upgrading the landscaping, painting the exterior, adding new lighting or even a brand new front door.
New flooring can make a big impact on the look and feel of your home so consider upgrading common areas to hardwood or luxury vinyl flooring, which are both popular options. Also in our opinion, adding a fresh coat of paint on the walls and new carpet to an aged bedroom can make the room feel completely brand new. It’s almost always a consideration for our flip houses.
A study by the National Association of Home Builders found that home buyers were willing to pay an average of $8,728 more for a energy-efficient home that saves at least $1,000 a year in utility bills. So energy-efficient upgrades, such as upgrading your HVAC system or adding insulation would be worth it for an outdated home.
Another way to create an energy efficient home is to install technology like a smart thermostat which can save on energy bills. Check out our favorite smart home technology add-ons for a home renovation here!
Outdoor Living Space
Adding an outdoor living space, such as a patio or deck, can increase the livable square footage of your home as well as the space for entertaining. And if there is already a patio or deck, consider either expanding the existing space (check out our deck remodel!) or adding other structures such as a pergola or shade covering to give it a new appeal.
By focusing on these key home renovations, it is possible to really increase the value of your home. Again, these renovations worked for us but keep in mind that every home is different, so be sure to talk it out with your real estate professional to make sure the renovations you choose will have the greatest impact.
Lastly, if you are planning a home renovation some time soon, grab our Home Renovation Planner to bring your dream home to life!