When considering selling your home, certain renovations can significantly increase your property’s appeal and value. However, not all improvements are equal in terms of investment return, so focusing on changes that prospective buyers will value most can help you get the most bang for your buck.
Below is a selection of home improvements with high returns on investment (ROI).
Kitchen Remodel
The kitchen is often considered the heart of the home and a key selling point. A modern, functional kitchen can be a decisive factor for buyers. Upgrading with energy-efficient appliances, stone countertops, and high-quality flooring can provide an average of 60-80% ROI. Even minor renovations, like repainting cabinets or updating white goods, can make a big difference.
Bathroom Renovation
An outdated bathroom can be a deal-breaker, but a renovated one with modern fixtures and a fresh look can yield a return of 66% of the project’s cost. Consider adding a walk-in shower, updating tiles, and installing water-efficient toilets. Adding an ensuite bathroom to a master bedroom can also be a lucrative update.
Energy-Efficient Insulation
Improving home insulation is a practical upgrade that appeals to buyers’ financial and environmental concerns. Proper insulation can cut utility bills dramatically, making this a very attractive feature with a potential ROI of over 100%. Buyers appreciate the immediate benefit of reduced energy costs, making this an investment you can’t afford to skip.
Hardwood Floors
Hardwood flooring is a desirable feature for home buyers, offering a clean, classic look that complements multiple decor styles. If your home already has hardwood floors, consider refinishing them. If you’re carpeted over hardwood, ripping out the carpet may reveal a hidden selling point. Even installing new hardwood can recoup around 70-80% of the cost.
Enhanced Curb Appeal
First impressions are everything, and curb appeal can affect a buyer’s perception of a home. Simple updates like new siding, front door, or garage door can bring an impressive return, often recouping 90% or more of the costs. Landscaping improvements also rank high and boost the perceived home value.
Deck Addition
Outdoor living spaces have become more important to buyers, especially since the pandemic. Adding a deck can yield a roughly 65-90% ROI, depending on materials and design. It extends the living space and offers an appealing venue for leisure and entertaining.
Fresh Paint
A fresh coat of paint is one of the most cost-effective ways to refresh your home and make it more marketable. Neutral colors are typically best, as they provide a blank canvas for buyers to envision their lives in the space. The estimated ROI for a professional paint job can range from 60% to over 100%.
New Roof
Replacing an old or worn roof can prevent potential inspection issues. While a new roof’s ROI varies, it’s often about 60%, with the added benefit of preventing sale delays due to buyer concerns about the condition of the roof.
Smart Home Technology
Smart home features are a hot selling point. Smart thermostats, security systems, and fire detectors are attractive to homebuyers for the added security and efficiency they provide. The ROI on smart tech varies, but it can significantly boost a home’s appeal and overall value.
Installing a Home Elevator
As multi-level homes age, accessibility can become a concern for homeowners and potential buyers. Installing a home elevator can make a home more appealing to people of all ages, including those who plan to age in place or have mobility issues. While the initial home elevator cost is high, it can distinguish a home from others in the area, potentially increasing the sale price by appealing to buyers with specific needs. Paying the residential elevator cost now will make the property seem more luxurious for years to come.
The ROI of a home elevator can be substantial in the right market, particularly in upscale neighborhoods where luxury features are expected. They can also be a significant draw in urban areas where multistory living is the norm, and accessibility can be a challenge. While not every buyer will be looking for a home with an elevator, those who do will be willing to pay a premium for this feature, so the home elevator cost can really pay off.
Conversion of Unused Space
Turning any rarely used space into a functional area can increase a home’s market value. Converting basements into family rooms, attics into spare bedrooms, or even over-garage areas into apartments can provide impressive returns.
Open Floor Plans
Open floor plans are in demand for their contemporary feel and the illusion of more space they provide. Knocking down non-structural walls to create a flow between the kitchen, dining room, and living room can prove highly effective in boosting a property’s value.
Conclusion
When renovating for resale, consider the potential buyer and the current housing market trends. Projects like updating kitchens and bathrooms, improving energy efficiency, adding smart home technology, or installing a residential elevator cost money, but they can be worth the investment.