Did you know that some home improvement projects can significantly increase your property’s value? Kitchen renovations, basement remodels, or bathroom additions can dramatically improve home value. By focusing on high return on investment (ROI) renovations, you can maximize your home’s value and appeal to potential buyers. In this blog post, we’ll explore 13 best ROI home improvements that can transform your living space and boost your resale value. Let’s get started!
Invest in minor kitchen and bathroom remodels, landscaping makeovers, energy-efficient upgrades and exterior transformations to increase property value.
Navigate local market trends when making home improvement decisions for a high return on investment.
Research financing options to maximize ROI of home improvements.
Top Home Improvement Projects for High ROI
Home renovations vary greatly in their impact on your property’s value. Certain upgrades substantially boost your home’s value, while others might not provide a worthwhile return on investment. Many experts predict that by 2023, costs will be higher than expected. Hence, you should devise a robust strategy to navigate these potential expense increases.
According to the value report, the highest-yielding home remodeling projects include major home renovation projects such as a remodeling project involving:
Minor kitchen remodels
These home improvement projects not only enhance your home’s aesthetic appeal, but also offer a substantial return on investment, making them a smart choice for homeowners.
Exterior projects, such as garage door upgrades, entry door replacements, and siding transformations, also rank highly on the home improvement ROI list due to their ability to boost curb appeal. Curb appeal is crucial in generating interest in your property and encouraging potential buyers to explore the interior. Concentrating on these high-ROI house improvements can help raise your property’s value and appeal amidst the fierce competition in the current real estate market.
1. Minor Kitchen Remodel
A minor kitchen remodel typically involves:
Installing new countertops or a sink
Refreshing hardware and flooring
The return on investment for a minor kitchen remodel is an impressive 98.5%, making it a worthwhile project for homeowners looking to increase their property value. Simple upgrades, like replacing cabinet hardware, installing new pendant lighting, or introducing a unique backsplash, can make a significant difference in the overall appearance of your kitchen.
Furthermore, replacing existing appliances with newer, more efficient models can also contribute to a successful kitchen remodel. Refinishing existing cabinets with a fresh coat of paint or gloss and new hardware can also help modernize the space. Concentrating on these minor updates can dramatically change your kitchen’s look without incurring huge costs while significantly enhancing your home’s value.
2. Bathroom Refresh
A bathroom refresh can yield a high ROI of 68 to 71 percent. Minor bathroom renovations, such as replacing the shower head with a rain shower, updating the vanity, and updating the lighting, can make a significant impact on the overall look and feel of your bathroom. In fact, the return on investment for a minor bathroom remodel is a staggering 102.0%.
Considering an average cost of $10,500 for a minor bathroom remodel and a typical return of $10,700, these minor alterations can significantly bolster your home’s value. Additionally, a full bathroom upgrade can provide assurance to potential buyers that they are making a wise investment.
3. Landscaping Makeover
A landscaping makeover is the process of transforming and enhancing your property’s outdoor area, often involving the redesign of the layout, the addition of new plants and features, and the improvement of the overall aesthetic appeal. Replacing 1,250 square feet of siding with fiber-cement can recoup more than 75% of the $19,361 investment upon resale.
A well-designed landscaping makeover not only raises your home’s value, but also improves its curb appeal and creates a more enjoyable outdoor living area.
Concentrating on exterior improvements like fiber cement siding installation can enhance your property’s curb appeal and draw in more potential buyers. In today’s competitive real estate market, a well-maintained and visually appealing outdoor space can make all the difference in setting your home apart from the competition.
4. Energy-Efficient Upgrades
Investing in energy-efficient upgrades can increase your home’s value and save on utility costs. According to Bankrate, the most profitable renovation for increasing home value in 2023 is converting to an electric heat pump. Likewise, replacing 1,250 square feet of vinyl siding can yield a return on investment of approximately 94,7%.
Some energy-efficient upgrades to consider include:
Converting to an electric heat pump
Installing energy-efficient windows
Installing a programmable thermostat
Switching to LED light bulbs
By making these upgrades, you can not only improve the energy efficiency of your home, but also increase its value in the long run.
Smart thermostats are another energy-efficient upgrade to consider. These devices enable homeowners to manage their home’s energy consumption, potentially reducing monthly electricity bills. Investing a few hundred dollars in a sophisticated smart thermostat can attract buyers and yield a substantial return on investment.
Exterior Renovations for Curb Appeal
Improving your home’s exterior and curb appeal can be achieved through projects such as garage door upgrades, entry door replacements, and siding transformations. The return on investment for a garage door replacement can be greater than the cost of the project. In fact, siding replacement with fiber-cement or vinyl has been reported to increase home value. Additionally, manufactured stone veneer has the potential to recoup all expenses and then some.
When choosing a new hue for your entryway, there are multiple factors to consider. Firstly, make sure it complements the style of your home as well as materials that cannot be painted such as original stone or brick. Secondly, think about the roof colour, hardscaping and environment surrounding your house.
Concentrating on these external renovations can boost your home’s curb appeal and leave a lasting positive impression on potential buyers.
5. Garage Door Upgrade
Upgrading your garage door with heavy-duty steel tracks can provide several benefits, including:
Increased home value
High return on investment
Reduced energy costs
Enhanced aesthetic appeal
The cost of a garage door upgrade will vary depending on factors such as the type of door, size, and materials used. Generally, a basic garage door upgrade can range from $500 to $2,000.
When selecting the appropriate garage door upgrade, it’s important to consider the following factors:
The size of the door
The materials used
The security features
Additionally, the style of the door should complement the overall look of your home, ensuring a harmonious and attractive exterior.
6. Entry Door Replacement
Replacing your entry door with a steel one can boost curb appeal and energy efficiency, resulting in a high ROI of nearly 101%. An entry door replacement involves:
Removing the existing door
Installing a new one in its place
Improving the aesthetics of the home
Increasing energy efficiency
When selecting the appropriate entry door for your home, consider factors such as:
A steel entry door not only offers a high return on investment, but also contributes to a more energy-efficient and secure home.
7. Siding Transformation
Transforming your home’s exterior with new siding can result in a high ROI of 75% or more. Replacing exterior siding with a durable material can enhance curb appeal and increase the value of your home. Some popular siding materials include:
A siding transformation can enhance the aesthetic of your home, add to its value, and protect it from the elements. By investing in quality siding materials and professional installation, you can ensure a long-lasting and attractive exterior for your home.
Expanding Livable Space
Increasing your home’s livable space can add significant value to your property. By converting attics, remodeling basements, and creating outdoor living areas, you can enhance the functionality and appeal of your home. These projects not only provide additional living space, but also offer the potential for increased resale value and improved overall quality of life.
As more homeowners seek to maximize their living space, expanding the usable areas of your home can be a wise investment. By focusing on these high-ROI projects, you can create a more comfortable and versatile living environment for your family, while also appealing to potential buyers.
8. Attic Conversion
Converting your attic into a bedroom can result in a high ROI of 93.5% and increase the number of available rooms in your home. Attic conversions involve renovating the attic space to create additional rooms such as bedrooms, home offices, or recreational spaces, thereby increasing the usable space in your home and adding value to your property.
The benefits of an attic conversion include extra usable space, the possibility of creating additional rooms, and a potential increase in your property’s value. Concentrating on this high-ROI project can turn your attic into a useful and valuable extension of your home.
9. Basement Remodel
Remodeling your basement can add valuable living space and increase your property’s value. A basement remodel typically involves:
Electrical and plumbing work
The approximate cost of remodeling a basement is contingent upon the size of the area and the materials and labor involved, with costs generally ranging from $10,000 to $50,000.
Remodeling your basement can provide:
Extra living space for your family
Boost to your property’s value
Potential decrease in energy costs
Additional storage space
This high-ROI project can be a good investment for homeowners seeking to maximize their living space and property value.
10. Outdoor Living Area
Creating an outdoor living area, such as a deck or patio, can enhance your home’s perceived value and usability, with an ROI of 90.3%. Outdoor living areas can include:
Other features that provide additional living space and improve the overall appeal of your home.
The cost of outdoor living areas can vary depending on the size and materials used, with costs generally ranging from approximately $2,000 to $20,000 or more. Investing in an outdoor living area can generate a more enjoyable and valuable living environment for your family and potential buyers.
Interior Updates That Pay Off
Simple yet effective interior updates, such as hardwood floor refinishing, fresh paint and new hardware, and mirror makeovers, can provide a higher return on investment and improve the overall appearance of your home. These cost-effective updates can help modernize your living space and make it more appealing to potential buyers.
Concentrating on interior updates with a high ROI can improve your home’s comfort and functionality without the need for extensive renovation projects. These updates can help you create a more attractive and valuable living space for your family, while also increasing your property’s resale value.
11. Hardwood Floor Refinishing
Refinishing or installing new hardwood floors can yield a 70-80% average ROI and provide a timeless, elegant look for your home. The process of refinishing hardwood floors includes sanding, staining, and sealing, resulting in a refreshed appearance and increased durability.
The approximate cost of refinishing hardwood floors is contingent upon the size of the area and the type of finish employed. Investing in hardwood floor refinishing can upgrade your home’s look and value, fostering a more inviting and luxurious living environment.
12. Fresh Paint and New Hardware
Applying fresh paint and updating hardware throughout your home can give it a modern, updated appearance. A new coat of paint can provide an immediate and noticeable transformation to any room, while updating handles, knobs, hinges, and other decorative elements can improve the overall appearance and functionality of cabinets, doors, and furniture.
The cost of applying fresh paint and updating hardware will vary depending on the size of the area, the type of paint and hardware used, and the amount of labor required. Focusing on these cost-effective and impactful interior updates can help you create a fresh, modern living space that attracts potential buyers.
13. Mirror Makeovers
Revamping your bathroom mirrors can create a fresh look and improved functionality for your home. Mirror makeovers can include painting the frame, incorporating decorative elements, or repurposing the mirror in an imaginative manner. These updates can add a sophisticated and fashionable flair to any room while enhancing the practicality of your bathroom space.
DIY framing kits are available for homeowners looking to create a custom frame for their mirrors. Investing in a mirror makeover can revitalize your bathroom, creating a more stylish and functional space for your family and potential buyers.
Navigating Local Market Trends
Understanding and navigating local market trends is crucial for making informed decisions on home improvement projects that will increase your home’s value. By researching recently sold properties in your area and consulting listing websites such as Zillow or RedFin, you can gain insight into attractive home trends or renovations in your vicinity.
Energy-efficient appliances and smart home features, for example, may have a higher return on investment in ecologically conscious locations. Staying abreast of local trends and focusing on high-ROI house improvements can help enhance your property’s value and attractiveness to potential buyers.
Financing Your Home Improvements
Exploring various financing options for your home improvements is an important aspect of maximizing your property’s value. Financing options may include:
Home remodel or home repair loans
Home renovation loans offered by Fannie Mae and the FHA
Home equity lines of credit (HELOCs)
Home equity loans
When considering financing options, it is essential to compare:
Potential tax benefits
Thorough evaluation and comparison of various financing options can help you find the most beneficial deal for your home improvement projects, ensuring a successful return on your investment.
In conclusion, focusing on high ROI home improvement projects can significantly increase your property’s value and make it more appealing to potential buyers. By investing in exterior renovations, expanding livable space, updating your home’s interior, and staying informed about local market trends, you can maximize your home’s worth and create a more comfortable and enjoyable living environment for your family.
Frequently Asked Questions
What home renovation has the biggest return?
Kitchen and bath remodels are a great way to boost a home’s value, often returning over 100% of the cost. This makes them one of the best investments for homes in the U.S. market.
How can I increase the value of my home cheaply?
Update fixtures and hardware, replace bad gutters, maintain your HVAC system, change cabinet hardware, upgrade to LED lighting, get rid of carpet, and freshen up landscaping – these are some affordable ways to increase the value of your home.
Making small improvements to your home can have a big impact on its value. Updating fixtures and hardware, replacing bad gutters, maintaining your HVAC system, changing cabinet hardware, upgrading to LED lighting, getting rid of carpet, and freshening up landscaping are all relatively inexpensive ways to increase the value of your home.
How can I finance my home improvement projects?
Financing your home improvement projects may include home remodel loans, credit cards, home renovation loans, HELOCs, home equity loans, and cash-out refinancing.
Each of these financing options has its own advantages and disadvantages. For example, home remodel loans are typically easier to qualify for than home equity loans, but they may have higher interest rates. Credit cards can offer rewards and other benefits, but they may also have high fees.
What is the return on investment for a minor kitchen remodel?
A minor kitchen remodel offers an excellent return on investment of 98.5%.
It is one of the most cost-effective home improvements you can make. Not only does it add value to your home, but it also increases the functionality of your kitchen.