Do These Common Renovations Actually Increase Your Home’s ROI?
Home renovations can make your space more functional or visually appealing. However, they can sometimes be expensive and time-consuming. In fact, the average remodel can cost around $46,891. Some common projects are worth the expense and others may not be. Here’s how to choose wisely.
Investments That Are Worth It
There are multiple factors to consider, such as location, when determining which projects have the best return on investment (ROI). Some have a higher ROI naturally. Here are a few renovations that provide the best bang for your buck.
1. A Kitchen Remodel
A minor kitchen remodel can give you an ROI of 81.1%, mainly because it is a high-traffic area of your home. Potential buyers want to imagine themselves cooking and hosting in the room. Instead of splurging on fancy but costly updates, consider minor ones first. For example, you can repaint walls and cabinets or upgrade to energy-efficient appliances.
Also, updating lighting or adding a tile backsplash can elevate the look. If you have more room in the budget, replace countertops and flooring. Marble or granite counters and hardwood floors provide a modern appearance.
2. Adding a Second-Story Addition
Many kids moved back in with their parents during the pandemic, prompting many people to add on to their homes. With housing prices rising about 17% in 2021, some students still struggle to find affordable apartments. Also, some families want space to care for aging or sick relatives. Plus, having another story provides extra space for visitors.
Consider adding a master suite, extra toy room, or even home office on the second floor. However, the project is a more significant investment in terms of time and money. Also, ensure you follow zoning laws and obtain any necessary permits.
3. A Bathroom Remodel
A bathroom renovation can increase your home’s value by about 67.2%. This is another high-traffic area of the house that potential buyers look at first. Start by updating old fixtures and installing low-flow showerheads. This can increase the room’s function and reduce the buyer’s utility bills. Also, adding more storage space can increase the value. In fact, an enormous closet is one of the top amenities on homebuyers’ lists.
Add some floating shelves or decorative baskets. If you have more room in your budget, upgrade to tile flooring, which is more moisture-resistant. You can then spruce up the space with fresh paint and new lighting.
4. An Additional Family Room
Living rooms are essential hangout areas, especially with people spending more time at home. However, sometimes people need space from their family members. Having an additional living room can be attractive to larger families.
Another bonus of the extra room is it can double as a home office. About 45% of people worked remotely in 2020. The additional area provides a private space during the day that can then be used to hang out at night. A renovation like this gives people who like to entertain even more room to party.
5. A Deck
A deck is perfect for entertaining and enjoying a lovely spring day. Private outdoor spaces have become more popular due to COVID-19. You can receive a 70% ROI for building a deck. Just ensure you have the proper permits. Wood is a popular choice for homeowners due to its durability, affordability, sustainability, and availability.
Add some comfortable seating and potted plants to make your deck stand out. You can even include popular amenities, such as fire pits or outdoor kitchens. Look beyond the landscaping when decorating by planting some colorful flowers or adding a fence. Consider cedar for its durability and easy maintenance.
Investments That May Not Be Worth It
Many projects add value, but some may not be worth it in the long run. Instead, you may want to invest your money elsewhere. Here are a few renovations you may want to skip.
1. A Swimming Pool
A swimming pool may be a good idea for a warmer area but may not provide long-term value. Installation and maintenance can be costly. Adding a pool can cost around $28,000-$55,000.
You also have to pay for cleaning supplies and filter replacements. You’ll also need to regularly clean and remove debris from the surface. A pool may not be attractive to all potential buyers and can even turn some people away. Weigh all this information carefully before taking the plunge.
2. Wall-to-Wall Carpeting
Carpets can easily attract germs and are hard to clean. This can cause an inconvenience for families who eat meals in the living room or have pets. Also, installing wall-to wall-carpeting can be time-consuming.
Hardwood floors are often more attractive and can increase resale value. If you want to add some carpets, place small rugs in the living room or children’s bedrooms.
3. Adding a Master Suite
A deluxe suite sounds like a luxury, but these renovations can get expensive. You might not get the full value back when selling. Standard upgrades include French doors, a gas fireplace, and a private kitchen.
It may be a better idea to renovate high-traffic areas like the kitchen. Keep in mind the suite is only one room, and if other places are less attractive, it could deter potential buyers.
4. A Major Kitchen Upgrade
Sometimes just a minor update is enough to recoup value without losing too much money. Focus on functional updates, like buying new appliances and revamping cabinets.
Not everyone loves to cook, and some people don’t need a lavish-looking kitchen. A fresh coat of paint and updated hardware are cost-effective and can make a big difference.
5. A Sunroom
A sunroom can provide shade and additional hangout space, so it’s ideal for houses in warmer climates. However, this is one of the most costly upgrades at around $10,000-$40,000.
It is also another project that requires time, and you may have to reconfigure your home’s layout. Instead, you can build more valuable auditions, such as a deck or extra bedroom.
Which Home Renovations Are Best?
Renovations come down to personal preference. Your neighborhood location and the status of the market play a role. Remodels that increase function and space are often best, while costly upgrades that come down to taste may not be. Consider these options before deciding on your next renovation project to get the most ROI.
In case you have any architectural, structural, and MEP design including fire sprinkler design requirements, or need your home renovation design including structure, and HVAC design, feel free to contact us. We provide you with the full permit set design + T24 for your request.
Rose is the managing editor of Renovated. She’s most interested in sharing home projects and inspiration for the most novice of DIY-ers, values she developed growing up in a family of contractors.