Explores which home improvements offer the best return on investment for homeowners looking to boost property value.
When it comes to home renovations, not all projects are created equal. Some upgrades can significantly increase the value of your home, making it more appealing to potential buyers or simply boosting your investment. If you’re looking to make improvements that will offer the best return on investment (ROI), here are five renovations that can add the most value to your home:
1. Kitchen Remodel
The kitchen is often considered the heart of the home, and a well-done kitchen renovation can provide a significant boost in your home’s value. Whether it’s updating outdated cabinets, upgrading appliances to energy-efficient models, or installing a modern backsplash, kitchen remodels typically offer a high ROI. Homeowners can recoup between 60% to 80% of the cost, depending on the extent of the renovation. Focus on functional yet stylish designs, and remember that even small updates like new countertops or hardware can make a big difference.
2. Bathroom Remodel
Bathrooms are another area that potential buyers pay close attention to. Modern, clean, and updated bathrooms can make a home feel more comfortable and luxurious. A mid-range bathroom remodel could involve upgrading fixtures, replacing old tiles, installing new vanities, or adding more storage. On average, homeowners can recover up to 70% of their investment in bathroom renovations. Adding a second bathroom in homes with limited bathrooms can also have a significant impact on property value.
3. Adding a Deck or Outdoor Living Space
Expanding your home’s livable space doesn’t always have to be indoors. Outdoor living areas, such as a deck or patio, are increasingly popular with homebuyers. Adding a deck or upgrading your current one can provide an outdoor retreat and increase your home’s usable square footage. On average, homeowners recoup about 65% to 75% of the cost of a new deck, especially if it’s made from durable, weather-resistant materials like composite decking. Consider creating an inviting outdoor space with built-in seating, outdoor kitchens, or fire pits to further increase appeal.
"Homeowners can recoup between 60% to 80% of the cost, depending on the extent of the renovation. Focus on functional yet stylish designs, and remember that even small updates like new countertops or hardware can make a big difference"
4. Energy-Efficient Windows and Doors
Replacing old windows and doors with energy-efficient models is a renovation that pays off in two ways: it lowers energy costs and enhances your home’s marketability. Energy-efficient windows and doors help with insulation, reducing the need for heating and cooling, which can lead to substantial savings on utility bills. These upgrades also appeal to environmentally conscious buyers. Homeowners typically recoup around 60% to 80% of the cost when they invest in these energy-saving features.
5. Curb Appeal Improvements
First impressions matter, and curb appeal can significantly affect the perceived value of your home. Simple upgrades such as a fresh coat of exterior paint, landscaping improvements, or replacing the front door can make a huge impact. Even minor changes like installing outdoor lighting or upgrading the driveway can add value. On average, improving curb appeal offers one of the highest returns on investment, with homeowners seeing an ROI of up to 100% in some cases, especially when the home’s exterior looks clean, inviting, and well-maintained.