If you’re considering home improvement remodels, return on investment is probably one of your top concerns. Before you begin, it helps to know which projects will produce the highest ROI when it comes time to sell your home.
Keep in mind that while some upgrades may not add as much value as others, they could still be worth thinking about if you plan on living in your home for a while and enjoying the improvements.
To help you decide where to focus your efforts, here are five home improvement projects to consider that can increase the value of your home:
1. Kitchen/Bathroom Remodel
Remodeling a kitchen or bathroom are two of the most valuable investments you can make with a high return, often exceeding 100%. Did you know remodeling a bathroom offers more than twice the return as a remodeled bedroom?
If you only have one bathroom, it makes more sense to add a second bath than remodel your existing one. For instance, a four-bedroom home with only one bath will have a lower resale value than a four-bedroom with multiple baths.
Before you make any major renovations, compare your home with others in your neighborhood. If other kitchens have stone countertops or solid wood cabinetry, you might consider using the same quality to get the same asking price when it comes time to sell. The opposite is also true — if others have more modest kitchens, these upgrades could lower your return.
2. New Flooring
According to the National Association of REALTORS®, refinishing a home’s hardwood floors offer the “highest money-back value,” enabling homeowners to recoup 100% of investment costs. If you’re installing new wood floors, you have the choice between genuine hardwood and manufactured wood. Real hardwood is more expensive to purchase and install but has a longer lifespan and higher return. Manufactured wood is cheaper to purchase and install but won’t last as long and has a lower ROI.
Alternatives to manufactured wood can include vinyl, linoleum, or even a coat of paint over wood, tile, or cement. Think about where your floors are located in your home. High-traffic areas and rooms like bathrooms or basements with high humidity need materials to withstand these conditions.
3. New Window Treatments
When you’re selling your home, first impressions are everything. By installing high-quality window treatments, especially in high-traffic areas like kitchens and living areas, you’re not only presenting your home in the best possible light, you’re increasing the value of your home.
High-end window treatments are custom-made to fit your particular windows and are considered premium furniture. They also can provide privacy, excellent energy efficiency, and sound absorption.
4. Wood Deck Addition
Based on the 2019 Cost vs. Value Report published by Remodeling Magazine, wood decks brought in an average recoup the value of 75.6% nationally, while composite decks recouped only 69.1% of the cost. Midrange backyard patios came in slightly lower at a recoup value of 55.2%.
While wood decks have a better ROI, they do require more maintenance. If you want something with lower maintenance, you might want to consider a composite deck.
5. Inside and Outside Paint
Painting your home’s interior can increase its value up to one to two percent. Concentrate on high-traffic areas like your kitchen and bathrooms.
If your home’s exterior needs painted, it’s a good idea to repaint it before you sell. Exterior paint can be costly, depending on the square footage of your home. Make sure to use a neutral color to attract more buyers.
Ready to Begin?
As a general rule, if your home is in good working order, focus on projects to improve its appearance. Because resale values for specific upgrades can vary between regions, we advise talking to a professional real estate agent to determine which of these upgrades will work best based on your budget.
All Photographs are copyrighted by Hunter Douglas.