What Remodels Increase Your Home’s Value the Most?
Home remodeling isn’t just about improving aesthetics and functionality—it’s also a strategic investment that can significantly increase your property’s value. Whether you’re planning to sell in the near future or simply want to build long-term equity, certain remodels offer a higher return on investment (ROI) than others. According to HomeGuide.com, most remodeling projects provide a 50% to 85% ROI, making them a worthwhile financial decision.
Below are some of the most valuable remodels that can increase your home’s resale price and appeal to future buyers.
1. Kitchen Upgrades: A High-ROI Remodel
The kitchen is one of the first areas buyers evaluate when considering a home. A modern, functional kitchen can significantly boost your home’s value. Simple upgrades such as new countertops, updated cabinetry, modern appliances, and high-quality flooring can yield a substantial return. Full kitchen remodels typically provide a 60% to 80% ROI, depending on the materials and design.
If you’re working with a smaller budget, minor updates—like replacing old hardware, installing a backsplash, or upgrading light fixtures—can still enhance the kitchen’s appeal without a full renovation.
2. Bathroom Renovations: A Reliable Investment
Bathrooms are another critical space that buyers scrutinize. Updating fixtures, adding modern tile, improving storage, and installing energy-efficient toilets and showers can make a big difference. On average, a mid-range bathroom remodel can yield a 60% to 70% ROI, while a more luxurious upgrade may see slightly lower returns but can make your home more competitive in high-end markets.
If a full remodel isn’t feasible, small updates—like re-caulking the tub, replacing an outdated vanity, or installing new mirrors—can still enhance value.
3. Adding or Refinishing Hardwood Floors
Flooring plays a crucial role in a home’s overall appeal. Hardwood floors, in particular, are a major selling point for buyers. Refinishing existing hardwood floors can yield a 100% ROI, while installing new hardwood flooring provides an estimated 70% to 80% return. Buyers prefer hardwood over carpet, as it is more durable and easier to maintain.
For homeowners looking for a cost-effective alternative, luxury vinyl plank (LVP) flooring can offer the appearance of wood at a lower price while still increasing resale value.
4. Roof Replacement: A Long-Term Value Boost
A new roof is one of the most significant home improvements you can make in terms of durability and resale value. According to Ruby Home, the lifespan of a roof depends on materials and can range from 25 to 50 years. If your roof is nearing the end of its lifespan, replacing it before selling can make your home more attractive to buyers who want a move-in-ready property.
While a roof replacement doesn’t always have the highest ROI (typically around 60% to 70%), it can be a key selling point that prevents potential buyers from negotiating a lower price due to needed repairs.
5. Outdoor Improvements: Curb Appeal Matters
The exterior of your home is the first thing buyers see, so investing in curb appeal is essential. Simple upgrades like new landscaping, fresh paint, and an updated front door can have a huge impact on first impressions.
More extensive outdoor projects, like adding a deck or patio, can also boost value. Deck additions, for example, typically provide a 65% to 75% ROI, making them a worthwhile investment, especially in regions where outdoor living spaces are highly desirable.
6. Energy-Efficient Windows and Doors
Energy efficiency is a major selling point for today’s buyers. Upgrading to double-pane, energy-efficient windows can improve insulation, lower utility bills, and increase home value. On average, window replacements yield a 70% to 80% ROI.
Similarly, upgrading to a steel or fiberglass entry door can enhance security and curb appeal while providing a 65% to 75% ROI.
7. Custom Additions: Tailoring to Buyer Preferences
According to Remodeling Magazine, custom-built homes can sell for up to 20% more than traditional homes when designed to align with buyer preferences and market trends. Adding a home office, finished basement, or expanded living space can make your property stand out, particularly in competitive real estate markets.
Strategic remodeling projects can significantly enhance your home’s value and appeal to future buyers. While not all renovations offer the same ROI, upgrades in kitchens, bathrooms, flooring, and curb appeal tend to yield the best results. By focusing on high-impact projects, you can maximize your home’s resale value and enjoy the benefits of a more modern and functional living space.