Wondering how much your completed remodeling project will add to the value of your home? While there are certainly improvements you can make that, over time, do increase your home’s worth, no project adds immediate value that matches your original investment. But some improvements or renovations do bring you more bang for the buck.
Best Remodels to Increase Value
If you want to quickly check the average cost to value of your remodeling project, head over to the Remodeling Cost vs. Value report for your area. From a simple switch-out of the front door to a whole room remodel, we’ve pulled their top five ranking home improvements.
1. Curb Appeal
The #1 home improvement for return on investment is a new front door which almost immediately recoups its expense. But if the existing door is fairly new and solidly built, a fresh coat of paint may be all it needs. Coupled with an upgraded garage door, this can be one of the best investments you make.
Another option is swapping old an older home’s windows for energy-efficient ones. While your initial recoupment may hover around 60%, you’re also likely to see a decrease in your heating and cooling costs. You may also qualify for a green energy tax credit.
Other exterior fixes include a new paint job, fixing or replacing the roof, and replacing any wood that has rotted. The bottom line: a well-maintained house is a more valuable one.
2. Kitchen Remodel
The hub of the home, a user-friendly kitchen that accommodates both family and guests is always a great investment. High-efficiency appliances, modern surfaces, and beautiful backsplashes and warmth and appeal to an outdated space. Simple upgrades will bring a greater immediate return, facelifts hover at 70% ROI, and a major kitchen remodel brings a return of about 50%.
Though it doesn’t have as high a return as some other improvements, a kitchen remodeling project can still bring a significant payoff, especially if you decide to sell. Keep in mind, though, that adding an expensive kitchen to a mid-priced home won’t yield as a high a return, though it’s certainly worth the investment if you’re a happy chef!
3. Bathroom Remodel or Addition
Just like kitchen remodels, your investment in a bathroom remodel has varying returns based on the scope of the project. Simpler facelifts tend to see a 70% return while full remodels with custom showers, innovative features, and that almost always include upgrading the plumbing and electrical see about 50%. If your home currently has a single bathroom, adding another offers big returns, anywhere from 80 to 130 percent on your investment.
4. Basement Remodel
Gaining finished square footage by investing in a full basement remodel can potentially add a lot of value to your home, particularly if there is an additional bedroom and/or bathroom. Game rooms, home theatres, offices, and full or partial kitchens are all valuable uses for the space. Return on a basement remodel is typically 50% or more.
5. Decks and Patios
Everyone loves an outdoor space that is comfortable and inviting. Today’s maintenance-free composite materials make adding a deck or patio a smart investment and you can expect to recoup anywhere from 65% to 90% of your outlay, depending on scope and costs.
Whether and how much a particular home improvement pays off varies from region to region and neighborhood to neighborhood. As a rule, any project that doesn’t require you to add on or expand the roof or foundation returns more value, because they’re less expensive.
Keep in mind, too, that return on investment on resale value is just one of the factors you should consider when choosing a remodeling project. What really matters is how a remodel will improve your family’s lifestyle and enjoyment of your home.
Ready to get started on your next kitchen, bathroom, or other remodeling project? Schedule a consultation with us today to learn more about how to get the features you want and the return you’re looking for. We look forward to meeting with you!
Ron is the resident numbers cruncher, helping clients meet their budget and get the remodel they’ve dreamed of. He considers himself the “man behind the curtain” who’s always looking out for the best interests of the client.