In light of the recent shifts in lifestyle and priorities, renovating homes to increase their value has become more critical than ever. As we move forward into 2023, it’s important to consider potential buyers’ latest trends and preferences when planning your renovation project.
With more people working from home and seeking outdoor spaces, home offices, and outdoor areas have become highly desirable features. This updated list of home improvements that add value considers these trends and includes specific product suggestions to help you make the most of your renovation project.
Making the decision to renovate your home is a significant investment that requires careful consideration. It’s important to strike a balance between enhancing your living experience and maximizing your return on investment when it’s time to sell.
If you’re considering a remodeling project, to help you make an informed decision, evaluating the potential resale value of your chosen renovation projects is crucial. Comparing the cost versus resale value of different renovation projects across the US can provide valuable insights into which ones are most likely to pay off in the long run.
What home improvements are really worth it?
When it comes to home improvement projects, it’s important to focus on those that will give you the most bang for your buck. Projects that enhance your home’s appearance, increase energy efficiency, and appeal to potential buyers are generally worth the investment.
According to Remodeling Magazine’s 2021 report, the top home improvements with the highest cost recouped at resale include a new garage door, vinyl siding, a minor kitchen remodel, a manufactured stone veneer, and a major bathroom remodel.
Other worthwhile projects include energy-efficient appliances, new windows, and smart home technology, as these can lower utility costs and add to a home’s value. Improving curb appeal with fresh landscaping, a new front door, or a fresh coat of paint can also make a big difference in a home’s appearance and value.
However, not all remodeling projects are created equal, and it’s important to evaluate the potential return on investment before starting a home project.
If you’re planning to sell your home in the future, it’s important to consider what’s on many buyers’ wish lists, such as outdoor living spaces, a family room, and hardwood floors. You don’t need to spend a lot of money to make improvements, as minor remodels can often yield high returns.
If you need to borrow money for a home upgrade, a personal loan or home equity line with a fixed interest rate can save money in the long run. Ultimately, investing in the right home improvements can enhance your living space, lower utility costs, and make your home more appealing to future buyers.
High-ROI improvements buyers love
Investing in home improvements can be a great way to increase the value of your home, but not all projects are created equal. While some projects may only yield a small return on investment (ROI), others have the potential to increase your home’s value significantly.
High-ROI improvements are those that can provide a substantial return on investment compared to the cost of the project. In this article, we will explore some of the top high-ROI improvements that homeowners can make to their homes to maximize their return when it comes time to sell.
Home improvements that buyers love, such as updated kitchens and bathrooms, can make a significant difference in the value of a home. But there are other high-ROI improvements that are less glamorous but still highly effective, such as energy-efficient upgrades, new garage doors, and adding living space.
Focusing on these high-ROI improvements ensures that your investment is well-spent and your home’s value is maximized.
Here are some of the top high-ROI home improvements to consider:
Kitchen remodels – Minor kitchen remodels, such as updating cabinets, countertops, and appliances, can yield a high ROI of around 80%.
Bathroom remodels – Updating bathrooms, including fixtures, flooring, and lighting, can also provide a high ROI of around 70-80%.
Energy-efficient upgrades – Adding insulation, upgrading to energy-efficient windows, and installing programmable thermostats can significantly save utility bills and yield a high ROI of around 80-90%.
New garage doors – Replacing an old garage door with a new one can improve curb appeal and yield a high ROI of around 90%.
Adding living space – Adding a deck, finishing a basement, or converting an attic into a bedroom can increase your home’s living space and yield a high ROI of around 60-70%.
Landscaping – Improving your home’s curb appeal with landscaping upgrades, such as adding new plants or installing a walkway, can yield a high ROI of around 100-200%.
10 renovations that will add value when you sell
- Adding manufactured stone veneer
Manufactured stone veneer is a popular choice for homeowners looking to upgrade their home’s appearance because it can significantly improve curb appeal. The natural look and feel of the stone veneer add texture and depth to the home’s exterior and create an eye-catching look that potential buyers will love.
The average cost of adding manufactured stone veneers to a home is around $10,000, depending on the size of the project and the type of stone veneer chosen. While this may seem expensive, the ROI is high, and it can make a big difference when it comes to selling your home.
Plus, adding manufactured stone veneer is a low-maintenance solution that can last for years, saving you money in the long run.
In addition to its aesthetic benefits, manufactured stone veneer can also improve your home’s energy efficiency. The stone veneer acts as insulation, keeping your home warm in the winter and cool in the summer, which can lead to lower utility bills and savings for future buyers.
- Garage door replacement
Replacing an old garage door with a new one can be a cost-effective way to boost your home’s curb appeal and resale value. The average cost of a garage door replacement is around $3,907, with an average cost recouped of 95.4%. This means homeowners can expect to recoup almost all the project costs when selling their homes.
A new garage door can also improve energy efficiency and provide potential buyers with added security. Energy-efficient garage doors are available with insulation and weather stripping, which can help lower energy bills by keeping the garage cooler in the summer and warmer in the winter.
Plus, a new garage door with modern security features, such as smart home technology or a keypad entry system, can provide peace of mind for homeowners and their future buyers.
- Converting a bedroom into an office
Converting a bedroom into an office is a popular home improvement project, especially since the rise of remote work. When done properly, it can add value to the home and increase its appeal to potential buyers.
The average cost of a bedroom-to-office conversion depends on several factors, such as the size of the room, the type of flooring, and any additional features like built-in shelves or a new desk. However, this conversion can be relatively affordable and cost-effective compared to other home improvement projects.
One important consideration when converting a bedroom into an office is maintaining a balance between personal and professional use of the space. This means choosing a design that can easily be transformed back into a bedroom if needed and adding features that will increase productivity and comfort, such as ample natural light and ergonomic furniture.
As with any home improvement project, it’s important to keep in mind the potential return on investment and the impact it will have on the home’s resale value.
- Doing a kitchen remodel
A kitchen remodel is one of the most popular home improvement projects homeowners undertake and for good reason. A well-designed kitchen can significantly increase the value of a home, as it is often seen as the heart of the home and a major selling point.
When planning a kitchen remodel, it’s important to consider the overall design and functionality of the space, as well as the materials and finishes used. Popular upgrades include energy-efficient appliances, hardwood floors, and custom cabinetry.
According to Remodeling Magazine’s Cost vs. Value Report, the average cost of a major kitchen remodel is around $75,000, with a cost recouped of approximately 54% at resale. However, a minor kitchen can cost around $25,000 and recoup up to 77% of the cost at resale.
When planning a kitchen remodel, it’s important to consider not only the aesthetic changes but also the practical ones. For example, improving the energy efficiency of the space can help save money on utility bills in the long run. Installing new windows, using energy-efficient appliances, and adding insulation are all practical upgrades that can make a big difference.
It’s also important to consider the flow and functionality of the space, as well as the amount of natural light. Improving the layout, adding more storage, and increasing the amount of natural light can make the kitchen more functional and enjoyable for homeowners and potential buyers alike.
- Replacing your entry door with steel
Replacing your entry door with a steel one is an excellent home improvement program to enhance the home’s curb appeal, energy efficiency, and resale value. According to Remodeling Magazine’s Cost vs. Value report, the average cost to replace an entry door with a steel door is around $1,500, with a cost recoup of 91.3%.
Replacing your entry door with steel is a worthwhile investment since it’s durable and low maintenance, unlike wood doors that can rot, crack, or warp over time. Steel doors are energy-efficient, and most are ENERGY STAR certified, meaning they can help lower utility bills by keeping the home warmer in the winter and cooler in the summer.
Moreover, steel doors add to the home’s security, keeping you and your family safe from burglars and other unwanted intruders.
A new steel entry door can also significantly affect your home’s appearance, particularly the home’s exterior. It’s the first thing buyers and visitors see when they come to your home, and it creates a positive first impression.
Furthermore, steel doors come in different colors, styles, and finishes, making it easy to customize them to match the home’s architectural style. With its numerous benefits, replacing your entry door with a steel one is a smart home upgrade project that you should consider doing.
- Replacing your siding
Replacing your siding is a great way to improve your home’s appearance and increase its resale value. Vinyl siding is one of the most popular choices for homeowners due to its low cost and ease of installation. According to Remodeling Magazine, replacing your siding with vinyl can recoup an average of 72.8% of the project cost at resale.
In addition to improving the look of your home, new siding can also provide energy efficiency benefits by helping to regulate your home’s temperature. Upgrading to insulated vinyl siding can help keep your home cooler in the summer and warmer in the winter, ultimately lowering your utility costs.
It’s also a selling point for potential buyers who are looking for homes that are energy-efficient and low maintenance.
- Adding a deck
Adding a deck to your home can be a great home enhancement project that adds value to your property and provides an enjoyable outdoor living space for you and your family. The average cost for a 16×20-foot deck addition made of composite materials is around $25,000, with a 69.1% cost recouped at resale.
However, if you choose to go with a wood deck, the cost can be as low as $8,000, with a slightly lower return on investment. The cost may seem high, but keep in mind that the addition of a deck can add significant value to your home, especially if you live in an area with a pleasant climate and outdoor living is in demand.
Additionally, adding a deck can be a great selling point for potential buyers, as it not only provides extra living space but also adds to the overall appearance of your home. When designing your deck, consider the size, shape, and features that will be most appealing to potential buyers.
Also, be sure to choose high-quality construction materials that are built to last, such as composite decking or pressure-treated lumber, to ensure that your deck is durable and long-lasting. Adding a deck can also be a great way to incorporate smart home technology, such as outdoor speakers or lighting, to enhance your outdoor living experience.
- Adding a swimming pools
Installing a swimming pool is a major improvement project that can significantly enhance your home’s value and appeal to potential buyers. A swimming pool provides a great place to relax and entertain family and friends during the hot summer months.
However, it is important to remember that swimming pools are a luxury upgrade, and installation and maintenance expenses can be substantial.
The average cost of a new in-ground swimming pool is around $40,000, with a return on investment of approximately 50% when selling the property. Keep in mind that adding a swimming pool may not be the best investment for every homeowner, as it may not be cost-effective for those who live in a climate with a shorter pool season.
- Update your mailbox and house numbers
Updating your mailbox and house numbers can be a simple and cost-effective way to boost your home’s curb appeal. This is a great example of a minor home upgrade project that can have a big impact.
The average cost of updating your mailbox and house numbers can vary, but it typically ranges from around $50 to $200. By improving your home’s exterior appearance, you can potentially increase its resale value and attract potential buyers.
Additionally, updating your mailbox and house numbers can improve your home’s functionality and safety. Clear, visible house numbers can help emergency responders find your home quickly in case of an emergency.
A new mailbox can also improve mail delivery and protect your mail from theft. By making these simple updates, you can enhance the appearance and function of your home without spending a lot of money.
- Curb appeal
Curb appeal is a term that real estate professionals and homeowners frequently use to describe how attractive a property appears from the street. It is the first impression a potential buyer or passerby will have of your home.
A well-maintained and visually appealing exterior can greatly increase a home’s resale value and attract more potential buyers.
Homeowners can improve their home’s curb appeal through various home improvement projects such as a fresh coat of paint, adding outdoor lighting, trimming the hedges, planting colorful flowers, or adding a new front door.
Adding a new garage door is another way to enhance your home’s curb appeal. It is one of the most cost-effective home improvement projects, with an average cost of around $3,600 and a cost recouped of over 94%.
Homeowners can also consider replacing their existing windows with energy-efficient ones, which not only improve the home’s appearance but also help lower utility costs. Landscaping and lawn care can also significantly impact a home’s exterior.
A well-maintained lawn, trimmed trees and hedges, and colorful flowers can instantly add to the overall appeal of a home, making it more attractive to potential buyers.
Best low-cost home improvements for resale
Focusing on curb appeal is a great place to start when it comes to low-cost home improvements for resale.
A fresh coat of paint on the front door and shutters and some new hardware can improve the home’s appearance. Landscaping and outdoor living areas can also significantly impact curb appeal.
Simple projects like adding fresh mulch, planting flowers or shrubs, and creating a seating area can help attract potential buyers. These projects typically have a low job cost and can provide a high return on investment.
Another low-cost home development project that can add resale value is minor kitchen remodeling. This can include projects like updating the backsplash, replacing cabinet hardware, and installing energy-efficient appliances.
How to budget for renovations to increase home value
To budget for renovations to increase home value, the first step is to determine how much money you can afford to spend. Look at your monthly budget and determine how much money you can put toward your renovation project each month. Once you have a clear idea of your monthly budget, you can begin to create a plan for your renovation project.
Next, you should research the average cost of the renovations you are considering. Look for information online or speak to contractors to better understand how much you can expect to spend. You can also look at home improvement stores to get an idea of the cost of materials.
Finally, consider the return on investment (ROI) of the renovations you are planning. While some renovations may add value to your home, others may not be worth the investment. Research the real estate market in your area to determine which renovations are most likely to increase the value of your home. By budgeting carefully and selecting the right renovations, you can increase the value of your home without breaking the bank.
Bottom line
The bottom line is that home renovations can increase the value of a home, but it’s important to budget and plans carefully in order to maximize the return on investment.
Low-cost improvements like fresh paint, updated hardware, and improved curb appeal can go a long way in attracting potential buyers and increasing resale value.
More extensive projects like kitchen and bathroom remodeling, new windows, and energy-efficient upgrades can be costly but may yield a higher return in the long run. Before engaging in any real estate transaction, kindly obtain the advice of a legal, accounting, or real estate specialist.