You’re putting a lot of time and money into a home remodeling project — of course you want a good return on investment. Certain home improvement projects will reap higher rewards (in terms of home value) than others.
When you’re strategic about how you update your home, you’ll see your property value increase. And once the project is complete, not only will you be able to enjoy the upgraded space, you can also feel confident knowing you made a smart investment in your property.
Let’s go through the best remodeling ideas for boosting your home’s value:
It’s no secret that the kitchen is one of the most important rooms in any house. It’s the heart of the home, the central gathering space where meals are cooked, and where many memories are made. And for home buyers, the kitchen pulls a lot of weight in their decision of whether or not to submit an offer.
A kitchen remodel can significantly increase the value of your home. According to data from Remodeling Magazine, a minor kitchen remodel can give you an 81% return on investment, while a major kitchen remodel can give you a 59% return on investment. No matter the scale of your kitchen remodel, you can get a return on your investment. Even small changes like replacing outdated appliances, installing new countertops, or painting the cabinets can go a long way in improving the look and feel of your kitchen.
Bonus: By expanding a small kitchen with a bump-out addition (along with a full remodel), you can expect an ROI of at least 80%.
Like the kitchen, a bathroom is another important room in the home, making a bathroom remodel a value-booster for a property. Remodeling Magazine found that a mid-range bathroom remodel can give you a 64% return on investment, while an upscale bathroom remodel can give you a 60% return on investment.
When it comes to bathroom remodels, consider upgrading the fixtures, installing a new vanity, or updating the tile. Even simple changes like adding new towels and accessories can give your bathroom a fresh new look.
Outdoor Living Space Remodel
Outdoor living spaces are becoming increasingly popular, and for good reason. They provide a great place to relax and entertain while enjoying nature and fresh air. Luckily, they can also increase the value of your home. For example, adding a new deck can give you a 75% return on investment, while a nice patio can give you a 55% return on investment.
When it comes to outdoor living spaces, consider adding a deck, patio, or outdoor kitchen. You can also add landscaping or a water feature to create a beautiful and serene outdoor oasis.
Similar to how outdoor living space remodels can increase your home’s value, so can exterior updates. Improving the curb appeal of your home makes it more attractive while providing an impressive return on investment. Remodeling Magazine says the projects with the highest return include:
- Adding manufactured stone veneer: 95.6%
- Garage door replacement: 94.5%
- Siding replacement / fiber cement: 77.6%
- Siding replacement / vinyl: 74.7%
- Window replacement / vinyl: 72.3%
- Entry door replacement / steel: 68.8%
Some of these projects, such as window replacements, can also improve the energy efficiency of your home, saving you money. It’s a win-win!
Finishing a basement can increase the value of a home, and the amount of the increase will depend on a few factors like the location, the size of the home, and the quality of the finish. On average, finishing a basement can increase a home’s value by 70% to 75% of the cost of the project, reports Remodeling Magazine.
A finished basement means more livable space in your home, which can make it more appealing to potential buyers. Second, this type of remodel creates a versatile space that you can use as a home theater, playroom, guest suite, fitness room, game room, or home office — all of which can add functionality and appeal to your home.
When you think about the cost per square foot of a home, size matters. That’s why increasing the square footage of your home automatically increases your home’s value. Certain room additions reap more rewards than others, though. While a kitchen addition (noted above) has the highest ROI, other valuable additions and their returns include:
- Second-story addition: 65%
- Primary suite addition: 63%
- Extra bedroom addition: 53-75%
- Bathroom addition: 53%
- Sunroom addition: 50%
The Bottom Line: Home Remodels Increase Value
So, is renovating a house a good investment? Updating your home is going to add value, but certain types of remodels are more valuable than others. You may not get 100% of your investment back after renovating your home, but you’re sure to see the value increase in some way. Even small changes make a big impact. Take the time to consider how any remodeling project will impact your home’s value before you begin.
Home Remodeling in Columbus, Ohio
Dave Fox is an employee-owned company that makes our clients our number one priority. We design and build bathroom remodeling, renovation, and room addition projects for our clients in Central Ohio and deliver the best value through exceptional craftsmanship, excellent materials, and ethical business practices. Contact us today to learn more!