When it comes to the home, keeping your space up-to-date is important for general maintenance reasons. However, renovations can also add real value to the home when selling or refinancing. If you want to increase the value of your house, there are certain changes that can make a larger impact than others.
Which renovations offer the best return on investment? The ROI of certain renovations will likely vary depending on the home’s location and the space being renovated. However, certain aspects of a home provide a higher return than others. In this post, we share a few select home renovations that are worth investing the time and effort.
Upgrade the Kitchen and Bathrooms
Both of these spaces are areas of the home that potential homebuyers care about the most, so their appearance, cleanliness, and functionality can make a large difference. Creating a modern looking kitchen is a great way to add value. Even if you do a minor kitchen remodel, you’ll probably recoup more than 80% of your investment and possibly even more. When it comes to the kitchen, there are some areas to consider for renovation. You might replace appliances with new, energy-efficient models. Refacing or replacing cabinets is a good idea or installing new countertops with granite or marble. Finally, an older sink and faucet should be replaced in addition to new flooring as needed.
Bathrooms often have similar features to kitchens. When it comes to renovating a bathroom, there are a few primary areas on which to focus a renovation. Upgrading the faucet, sink, and countertops are usually the focus. Natural stone and mute colors are very popular for bathroom renovations. Depending on the condition of the shower and toilet, these may need to be upgraded to a more modern version, although not needed in all cases. Finally, any flooring may need to be replaced and consider repainting to round out the renovation.
Upgrade to Hardwood Flooring
When it comes to renovations that add value, hardwood flooring makes a difference. Depending on the flooring that you already have, you may be able to refinish your current floors–although it can be beneficial to upgrade to new hardwood flooring.
When it comes to hardwood flooring, solid wood floors, in general, are less likely to cause problems for people with allergies. Hardwood floors are also easier to keep clean with dust and debris easily swept away. Keep in mind that if you decide to install hardwood floors, solid hardwood is the best option. Although you can put hardwood flooring throughout your home, it works especially well in bedrooms and living areas, which are not prone to dampness.
An alternative to solid hardwood floors that’s quite trendy right now is engineered hardwood flooring. Engineered hardwoods provide much of the same benefits, but are often more affordable and easy to install. Certain engineered hardwood floors are healthy and sustainable options that contain no harsh chemicals or other additives that can impact a home’s air quality.
Lastly, if you have hardwood with carpeting, consider removing the carpeting and refinishing the floor. This is often a weekend project that’s fairly simple to do and can add great value to your home.
Add a Deck or Outdoor Living Space
When it comes to renovations that add value, you don’t have to confine yourself to renovations inside the house. In fact, outside renovations are a great way to enhance the value of your home as well as creating an extension of your home. For example, patios are a sought-after amenity. If you don’t have one already, adding it in can provide an ROI of at least 100%. If you have a patio, but it simply needs to be refinished, then you can get an ROI of almost 500%.
Another way to add an outdoor living space is to add a wooden deck or refinish/repair a current one. Although you’ll pay more to add a deck, this extension of your home can increase the resale value by up to $9,000 or more depending on how elaborate the project is, compared to repairing a current deck will be much less. Make sure that you add outdoor lighting and seal the deck to ensure a longer life for the wood.
If you don’t have the space or budget to add a deck or patio, you can still add an outdoor space. Consider putting in a fire pit or extended roof hanging. You’ll still create a nice outdoor space that people will love for usually a much smaller cost.
Starting the Renovations
Keep in mind that home renovations can take some time to do, so you’ll want to consider which renovations are worth your time if selling quickly. However, if you have no immediate plans to sell a house, why not add to its value? Start with one area or space to renovate and you’ll see a significant return on your investment. For smart homeowners, prioritize these three areas to see the greatest return on your investment.