The question everyone debates when making a major renovation project or an update to their home is this; will this increase the value of my home? When selling your home, making the right improvements can significantly boost its value and appeal to buyers. However, not all renovations are created equal. Some offer a higher return on investment (ROI) than others, helping you maximize your sale price without overspending. Let’s check out some home improvements that are proven to add value to your home.
Curb Appeal: The First Impression That Pays Off
Exterior Paint and Siding
First impressions matter, and the exterior of your home is the first thing buyers notice. According to the National Association of Realtors (NAR), upgrading your home’s exterior through fresh paint or new siding can offer a strong ROI, sometimes up to 70-80%. Opting for neutral, modern colors can increase appeal without alienating potential buyers. A mid-range vinyl siding replacement, for example, can recoup 68.3% of the project cost, according to Remodeling Magazine’s 2023 Cost vs. Value Report.
Landscaping
Another simple yet impactful way to improve curb appeal is through landscaping. A well-maintained lawn, trimmed hedges, and strategically placed plants can make your home look inviting. Research by the NAR suggests that landscape improvements can offer an ROI of 100% or more. Even basic landscaping tasks such as lawn maintenance or planting flowers can make a huge difference in attracting buyers.
Kitchen Renovations: The Heart of the Home
Minor Kitchen Remodel
Kitchens are often seen as the heart of the home, and a minor kitchen remodel can yield a high return. You don’t need to go overboard; sometimes, just upgrading cabinets, countertops, and appliances can make a big difference. According to Remodeling Magazine, a minor kitchen remodel can recoup about 85.7% of the cost on average. Buyers are typically looking for modern, functional kitchens, so adding energy-efficient appliances or updating the backsplash can greatly enhance the appeal.
High-End Upgrades: Are They Worth It?
While a minor remodel offers great ROI, high-end kitchen upgrades tend to offer less bang for your buck. An upscale kitchen remodel typically recoups around 56% of the investment. This suggests that while buyers appreciate updated kitchens, they may not be willing to pay significantly more for luxury finishes. Stick with mid-range improvements that modernize the space without overspending.
Bathroom Upgrades: Small Changes, Big Returns
Minor Bathroom Remodel
Bathrooms are another key area buyers focus on when evaluating a home. Like kitchens, a minor bathroom remodel can offer strong returns. Replacing outdated fixtures, adding a fresh coat of paint, and upgrading the vanity can give your bathroom a modern, clean look. According to Remodeling Magazine, you can recoup about 66.7% of the cost for a mid-range bathroom remodel.
Adding an Additional Bathroom
If your home has fewer than two bathrooms, adding another can significantly increase your home’s value. Homes with more bathrooms generally attract more buyers, especially larger families. While the upfront cost can be substantial, it can pay off in the long run, as this upgrade can often return 60% or more of your investment, depending on the housing market in your area.
Flooring: An Instant Upgrade
Hardwood Floors
Buyers love hardwood floors for their aesthetic appeal and durability, making them a smart investment. According to the NAR, refinishing existing hardwood floors can offer a 100% ROI, while installing new hardwood floors can bring in about 118% of the cost. If you already have hardwood hidden beneath carpeting, consider revealing and refinishing it to add instant value to your home.
Vinyl and Tile Options
While hardwood is the gold standard, other flooring options like luxury vinyl planks and ceramic tiles can also yield high returns. These materials are cost-effective yet stylish, offering a modern look without the high price tag. Luxury vinyl planks, in particular, are growing in popularity due to their durability and resemblance to hardwood, offering a strong alternative for those on a tighter budget.
Smart Home Features: A Modern Touch
In today’s tech-driven world, smart home features are becoming increasingly popular. Installing a smart thermostat, lighting systems, or home security features can make your home more appealing to tech-savvy buyers. While these upgrades may not offer as high a return as structural renovations, they can help differentiate your home from others on the market, adding perceived value. Many buyers are willing to pay a premium for homes that are equipped with smart features that improve convenience and energy efficiency.
Your Local Real Estate Expert
Considering tackling a home improvement project and thinking of selling your home in the near future? It is probably worth reaching out to a professional, local real estate agent for guidance. Kelli Stouffer is here to help! Contact Kelli for all of your real estate related questions, especially if it is regarding home value.
