Best Renovations to Increase your Home Value

Are you planning your next renovation project? It’s more critical than ever to know what upgrades increase home value before you get started.  Read on to learn more about what we suggest you focus on, especially if selling your home is in the horizon.

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1. Make upgrades that add physical square footage or make your home feel more spacious. 

Convert or build a home office

Since 2020, many buyers expressed that having a home office is a top priority when buying a new home.  They actually care about a home office more than they care about whether the home is move-in ready or about the square footage.

Creating new space or dedicating existing space to a home office is likely going to be a good investment if you’re in a market with a decent amount of people who telecommute.  A home office could add over $10,000 in resale value.

Finish your basement

If you have an unfinished basement, you might have room for storage, but you’re missing out on livable space for future buyers to enjoy — whether as a home office or space for entertaining.

Even among homes ranging from $250,000 to $400,000 an unfinished basement can add about $15,000 to $20,000 but if it is finished, a basement can add even more — up to $40,000 or $50,000 to the asking price.

Open up the floor plan

Open layouts are still in. People need dedicated space to work, but they still want to enjoy family time and entertain.

Knowing that, knocking out the right wall can create the spacious layout on many buyers’ wish lists. 85% of buyers want an open layout between the kitchen and dining room; 79% favor an open arrangement between the family room and the kitchen, and 70% like an open layout between the family room and the dining room.

2. Upgrades that enhance your home’s curb appeal

Curb appeal entices buyers before they even enter your home. Buyers will pay 7% more for a house with great curb appeal compared to one with a neglected exterior. The ROI of curb appeal is highest in the Northeast, where an investment of about $3,600 in curb appeal yields about $14,800 in resale value. 

Add stone veneer to the front of your house

In a midrange home, replacing a 300-square-foot band of existing vinyl siding from the bottom third of the street-facing facade with adhered manufactured stone veneer costs an average of $10,386 but recovers about 92% of that at resale.

Replace your garage door

Is your garage door looking a little dingy on the outside or making strange noises? Or perhaps the style is now dated compared to what your neighbors have? A new garage door is also likely to be worth the investment.  A garage door costs an average $1,200 but adds an average $2,797 in resale value for a 133% ROI. 

Add a parking spot

If you’re in a city or more crowded area where street parking is at a premium, look into adding a concrete parking pad for about $1.200. The safety and convenience of parking is worth its weight in gold. 

3. Do a minor remodel rather than an upscale one

A minor remodel of a 200-square-foot kitchen, including replacing cabinet fronts, countertops, and appliances, costs about $26,200 but recoups about $20,000 at resale. That’s about 71% ROI compared to recouping about 56% of expenses for a major kitchen overhaul.

Likewise, a midrange remodel for a bathroom costs about $28,000 and recoups 60% of its total cost at resale compared to a full upscale bathroom overhaul (55%).

Skip the heated towel racks, heated floors, frameless glass enclosures, and body-spray fixtures. New standard fixtures and ceramic tile floors will do the trick.  You can save even more money by refreshing your cabinetry with paint.

At the end of the day, there are many ways that you can boost your home’s value and ultimately your ROI.  It is important to remember that not all home improvements are created equal. Choose the improvements based on increased home value and of course, give us a call if you ever have any questions or need expert advice or representation.