If you plan to sell your home anytime in the next few years, home renovations may add home value. However, some renovations have a higher return on investment (ROI) than others.
Conversely, if you plan to live in your home for more than five years from the time of the renovation, you don’t necessarily need to focus on the ROI. But if you sell within the next few years, you may want to consider specific types of renovations over others.
So here are some of the best renovations that will add the most value to your home in today’s market.
Aesthetic Renovations to Add Home Value
By far, research indicates aesthetic renovations being the best for adding value to a home.
Improvements that enrich a home while helping buyers understand the space or feel at home increase the property’s value. Structural renovations can also bring value to a home upon resale, but they are less likely to have as high an ROI as aesthetic renovations.
Furthermore, buyer preferences vary by region and price range of the home. For location-specific information, consult with your Realtor and see the Remodeling Cost vs. Value Report.
Indoor Space-Expanding Renovations to Increase Home Value
Renovations that make the home feel more spacious or reclaim unusable square footage are great for increasing home value.
Opening the Floorplan
Homes built in the 1980s or before may not have the open concept design many of today’s buyers demand. So, it is often worthwhile to open up space by removing non-load bearing walls.
Light, Neutral Paint Colors
Buyers tend to prefer neutral paint colors over dark or unique colors. Neutral colors are warm and inviting, making rooms feel more spacious while helping buyers picture their furniture in the room.
Wood Floors
Buyers today love wood floors. If you have hardwood floors and refinish them, you’re likely to see a nice return on the investment. And if you do not currently have wood floors, and especially if you have carpeting throughout the home, adding wood floors could result in a quicker sale and a higher price.
Removing Bulky Features
Some things take up too much space in a room and make it feel smaller than it is. For example, older bathtubs tend to be large and might make a limited space feel even tighter. You can make the bathroom feel more spacious by replacing a bulky bathtub with a stand-up shower or a smaller tub.
This also applies to landscaping and outdoor home features. Any plants or yard features awkwardly large for the outdoor space might make the area feel smaller and less welcoming.
Outdoor Renovations to Add Home Value
The outside of the home is the first thing a potential buyer sees when driving up. Therefore, renovations improving the outside of the home tend to recoup much of their value.
Landscaping and Curb Appeal
Curb appeal matters to buyers. By sprucing up your front garden beds and keeping your lawn maintained, you can give a better first impression of your home, making potential buyers more interested.
Home Façade Upgrades
An attractive manufactured stone veneer can give back 94% of the money invested in the improvement, on average. And other siding options like vinyl siding or fiber-cement can also earn back 80% or more in value.
Outdoor Painting
Like changing the outdoor siding, repainting the outside of the home in a neutral color can make it feel newer, even if it’s an older home.
Installing a Patio or Deck
A wooden deck could potentially increase the home’s value by 77% of its installation cost. And a deck made of composite wood material is likely to earn back around 66% of the cost of installation upon selling the home.
Privacy Fencing
In neighborhoods where homes are close together, privacy fencing is a valuable addition to your home. You can often recoup the entire cost of the fencing.
Kitchen and Bathroom Renovations to Increase Home Value
Kitchens sell homes. Outdated bathrooms and dysfunctional kitchens are huge detractors for buyers. Many renovations in these rooms are good for resale value.
Matching Fixtures and Appliances
One of the simplest projects that is likely to recoup its cost is to install new hardware, such as matching faucets, cabinet handles, towel racks, and other fixtures. Matching sets are more appealing to buyers and make a home feel more modern.
The same is true for kitchen appliances. Buyers prefer matching stainless-steel appliances in the kitchen, which is likely to improve the home’s value and make it more desirable to buyers.
Efficient Appliances and Fixtures
When you’re buying new appliances, look for energy-efficient models whenever possible. Efficient appliances are very attractive to buyers and will save them from having to purchase these on their own.
Consider updating old fixtures like toilets and showerheads in the bathroom, replacing them with quality water-saving models. Toilets are the most important bathroom fixture to update because newer models only use a fraction of the water compared to older models.
Total Remodel (Mid-range)
In most U.S. markets, a complete kitchen renovation with midrange kitchen features (as opposed to upscale features) improves the value of your home. You may be able to recoup 58% or more of the cost, depending on how much you spend on the renovations. Upscale renovations are less likely to recoup costs.
You can expect anywhere from 61 – 66% of the costs to be recouped for midrange bathroom renovations, which is especially true for outdated bathrooms or bathrooms with a tight design that can be made to feel more spacious.
Efficiency Upgrades for Better Home Value
Today’s homebuyers are more conscious of their carbon footprint and the costs associated with inefficient homes. Renovations that improve home efficiency are good for home value.
Energy-Efficient Windows
New windows are more energy-efficient than older windows. Because less air can leak out, it’s less expensive to heat or cool the home. Newly installed windows may recoup 66 – 73% of the cost, depending on the material.
Energy-Efficient Doors and Garage Doors
Steel front doors are popular with today’s buyers. These doors are far more efficient, with less air leakage than traditional entryway doors. These can recoup anywhere from 67% or more of their costs.
Garage doors are even better for home value. A new, efficient garage door can earn back around 88% of its purchase cost.
Attic Insulation
Attic insulation is enormously beneficial from an energy-efficiency perspective. Even if done professionally, this project can recoup its entire cost and then some.
Removing Detracting Features
If your home has anything that would instantly make buyers less comfortable living there, removing the detracting feature can help you sell the home at its true value. This might include:
- Worn-out carpets (stained, ripped, threadbare, etc.).
- Broken windows.
- Water damage stains.
- Outdated or broken light fixtures.
- Faded or outdated wallpaper.
- Popcorn ceilings and acoustic tiles.
- DIY home fixes.
- Outdoor trash or brush piles.
Removal of detracting features can bring the home value up to what it should be, making it a good investment if you plan to sell your home.
Marimark Realty
Marimark Realty, home to the top Realtors for Tampa Renters, focuses on providing a personalized experience for buyers and sellers of real estate. As a full-service real estate agency, we help clients with luxury homes, homes for first-time homebuyers, commercial property, and investment property.
To begin the journey of purchasing or selling your home, or purchasing commercial or investment properties, contact us at your earliest convenience.