We all want our homes to be comfortable, aesthetically pleasing, and, if you're considering selling in the future, valuable in the eyes of potential buyers. When it comes to improving your home, it's not just about making a space more usable or attractive. It's about investing wisely and getting the best return on your investment (ROI). According to Renofi
, the national average ROI for home remodeling projects is around 70%. But how do we ensure we're making the right decisions for our homes and wallets? Let's dive in and explore the best ROI home improvements for your home.
The Average Return on Investment by Home Improvement Project
It's essential to know which projects typically have the best average ROI. While every home and situation is unique, some improvements consistently perform well in boosting a home's value. According to Remodeling by JLC
, the average ROI for different projects are as follows:
||Avg. ROI %
|Midrange Bathroom Remodel
|Minor Kitchen Remodel
|Major Bathroom Remodel
|Major Kitchen Remodel
|Garage Door Replacement
|Wood Deck Addition
Best Improvements to Boost Return on Investment
Enhancing your kitchen
Kitchens are the heart of the home, and an updated kitchen can significantly increase your home's value. This can include a minor kitchen remodel, such as new countertops or cabinets, or a major remodel involving a complete layout change.
Giving your walls a new hue
A fresh coat of paint is a cost-effective way to drastically change the look and feel of your home. Neutral colors tend to appeal to a wider range of potential buyers.
Restoring hardwood floors
Hardwood floors are a popular feature for many home buyers. Refinishing existing hardwood floors can rejuvenate a room and bring a fresh, polished look to your home.
Installing modern mirrors
Replacing old mirrors, especially in bathrooms and bedrooms, can create a sense of more space and light, making rooms more inviting.
Swapping outdated hardware like door knobs, drawer handles, and light fixtures for more modern styles can significantly improve your home's aesthetic appeal.
Enhancing the home's exterior
First impressions matter. Upgrading the exterior of your home with fresh paint, modern siding, or improved landscaping can make a significant difference in perceived value.
Improving curb appeal with plants
Planting trees, bushes, and flowers at the front of your home can improve your curb appeal, giving potential buyers a positive first impression before they even step inside.
Designing functional spaces
Ensure that every area in your home is utilized effectively. This could involve turning an unused nook into a cozy reading area or creating a home office space in a spare room.
Utilizing attic and basement space
Don't neglect the attic and basement. Finishing these areas can add valuable square footage to your home, whether it's for storage, an extra bedroom, or a recreation room.
Revamping the bathroom
Whether it's a minor update or a major renovation, remodeling your bathroom can significantly enhance your home's value. This can involve replacing fixtures, installing new tiles, or even expanding the space.
Elements That Affect Resale Value and ROI
The regional trends
The ROI of certain home improvements can be highly influenced by regional trends and the specific nuances of your local real estate market. For instance, in warmer climates where outdoor living is a significant part of the lifestyle, investments in outdoor spaces, such as a deck addition or a well-appointed outdoor kitchen, might provide a high ROI. On the other hand, in colder climates, upgrading heating systems or insulation can lead to higher returns. It's essential to understand the preferences and expectations of buyers in your specific region before embarking on home improvement projects.
The housing market condition
The broader condition of the real estate market can significantly impact your home's value and the potential ROI of home improvements. During a seller's market, when demand from buyers outpaces the supply of homes available, sellers can often get a higher ROI as buyers may be willing to pay more for well-appointed homes. On the flip side, in a buyer's market, when there are many homes available but fewer buyers, you might need to focus on more impactful improvements to stand out and secure a solid ROI. Keeping a pulse on market conditions can help guide your home improvement decisions.
The timeline of sale
Your intended timeline for selling your home can influence which improvements you should focus on. If you plan to sell your home in the near future, you might want to prioritize projects that can quickly increase its curb appeal and overall value, such as cosmetic upgrades in key areas like the kitchen and bathrooms. On the other hand, if you're not planning to sell for several years, you might choose to undertake more substantial renovations that will enhance your enjoyment of the home now and add value in the long term. For instance, you might decide to add an extension, finish the basement, or upgrade the landscaping.
Unforeseen expenses and issues
While the goal of any home improvement project is to increase your home's value, it's important to be prepared for unexpected expenses and issues that could impact your final ROI. These can include unforeseen structural problems that need to be fixed, materials that end up costing more than anticipated, or delays that extend the timeline and increase labor costs. Always factor in a contingency budget when planning your home improvement projects. An extra 10-20% on top of your estimated costs can help cover unexpected expenses and keep your project on track. Even with careful planning, renovations can often uncover issues that weren't apparent at the outset, particularly in older homes. By factoring these potentialities into your budget and timeline, you can ensure a smoother renovation experience and a more accurate projection of your ROI.
About Kim Knutzen
Kim Knutzen is a dedicated and experienced real estate expert for North Georgia and the Blue Ridge area. With a profound passion for helping clients navigate the intricate world of real estate, Kim's commitment to exceptional service and unparalleled market knowledge is evident in every transaction. Her 40 years of real estate experience has been focused on bringing buyers and sellers of high-end waterfront homes, mountain-view cabins, land acreage tracts, investment properties and commercial buildings together to consummate an honest deal. If you're looking to buy or sell a home in the Blue Ridge Georgia area, contact Kim Knutzen today