What Home Renovations Add the Most Value?

Every homeowner should learn what home renovations add the most value to their home before they ever spend a dime on home renovations. Investing your home renovation dollars in the right projects can help you to get the best ROI on your investment. Learn now what home renovations add the most value to your home before you commit to a project.

Do Renovations Always Increase Home Value?

Before we get to what home renovations add the most value, we have to talk about the home renovations that do not add value. As a matter of fact, some home renovations can reduce the value of your home.

According to Remodeling Magazine, the average return on 22 popular home renovations was about 60% last year. This statistic comes from the magazine’s annual Cost V Value study. The magazine went on to explain that on average the right renovation project will pay you back about $.74 on every dollar that you spend. However, many homeowners experience renovation regrets because they put money into the wrong projects.

Here are some renovation projects that do NOT come with a high return:

  • Adding a pool to your backyard. Many buyers look at pools as a liability. Of course, you get a lifestyle value out of a pool, but rarely does it increase the value of your home.
  • Lead paint renovation. Removing all the lead paint from your home is a great way to improve the safety of your home, but it is rarely appreciated and does not add value to your home. You could paint over lead paint.
  • Very specific fixtures that are customized to your personal taste.

Upgrading building materials to the custom level can backfire when it comes to adding value to your home. Having all the bells and whistles that are customized to your preference makes the home perfect for you, but it can be overkill when it comes to adding value to your home. Value is determined by what a buyer will pay for your home. Some renovations can easily price your home out of the market.

In other words, customizing your home too much is not the best way to add value to your home. Many homeowners wind up with renovation regrets because they paid far more for the renovation than they should have because of the custom features, and buyers are simply not interested. For example, built-in dining room sets are nice, but typically do not add value.

There are safer renovation options that will improve your home, improve your lifestyle in your home, and add value to your home. Keep reading to learn about what home renovations add the most value to your home.

Let’s Start At The Top With The Roof

If you want to know what home renovations add the most value, it is hard not to talk about the value that a new roof will add to your home. Partnering with the right roofing contractor can be one of the best things you ever did for the value of your home. Roof systems are so important to the protection of your investment, and a new one can really ramp up the value of your home.

Roofers can usually get a new roof or replacement roof installed in a matter of days. It is usually a quick project that instantly adds value to your home. Of course, a replacement roof will also deliver peace of mind, and it is something you will likely never have to do again.

How much value does a new roof add to your home? According to the REA, a new roof on average adds about $16,000 in value to a home, which is approximately a 63% return on investment. That is huge. Some experts say that a new metal roof can give you a 100% ROI on your investment.

If your aging roof has been repaired more than three times in the last year, investing in a new roof will deliver the value that you want. Connect with a trusted roofing company to learn more about your options.

Consider a Bathroom Remodel

If you ask a real estate agent about what home renovations add the most value you will hear bathroom remodeling and kitchen remodeling. Bathroom renovations are very popular because of the value that they add to homes.

According to SmartDailyBudgets, a bathroom renovation can come with a 68% return on your investment. A complete bathroom renovation takes a couple of weeks and on average costs between $124 -$275 per square foot. However, there is one caveat when it comes to bathroom remodeling and how it will affect the value of your home that you need to keep in mind.

Customizing your bathroom too much can reduce the value that it adds to your home. While you may love lime green and pink, you should not ask the custom construction service to install those lime green and pink tiles. Remember that going to custom can backfire. If you go over the top with the renovation you likely will not see the return you are hoping for. Of course, if you live in a home that is valued at $250,000 you do not want to spend $50,000 on a bathroom renovation.

Should You Renovate Your Garage?

If you are a gear head and you have visions of an epoxy garage floor dancing in your head, you are on track to something big. The garage does not get enough attention from most homeowners. A small garage renovation should be on the home renovations add the most value list, as long as you do not overdo it.

There are plenty of garage renovations that will pay you back that are very affordable. Some coating services can get your epoxy floor done in one day, and it is ready to be used in 24 hours. Adding garage floor coating, putting up built-in shelves, and creating work stations in your garage can come with a 25% return on your investment and add about $5000 resale value to your home.

Upping Your Curb Appeal

When we think about what home renovations add the most value, we think about inside the home, but do not let landscaping fall off your radar. Improving your curb appeal by landscaping your front yard is relatively inexpensive and will instantly add about 12% value to your home. The beauty of a landscape renovation project is you can do most of the work yourself.

All you need to get started is some plants, shovels, rakes, and some sweet equity. Ramping up your landscaping will add value to your home. Consider renovating both the front and the backyard to get the most value out of landscape renovation.

A backyard deck can add value with a built-in seating area. Other features like fire pits, garden boxes, and dedicated spaces for relaxing can all pay you back by adding value to your home. Well-designed outdoor spaces can extend the living areas of your home. Put landscaping on your list.

Kitchen Renovations That Add Value

If you want to know what home renovations add the most value, you do not have to look any further than your kitchen. In 2022, one of the biggest kitchen remodeling trends is to add a walk-in pantry but that is not the only trend that is helping homeowners to increase the value of their kitchen.

Kitchen islands are also a big trend that can add value to your home. Many homeowners make the mistake of thinking that they need to do an entire rip-out renovation where the kitchen is demolished down to the walls and everything gets replaced. That is simply not true. You can add value to your home and your kitchen by doing smaller renovations like adding a pantry or an island, refacing the cabinets you have, and updating plumbing fixtures.

How much value will a kitchen renovation add to your home? About 19% with an ROI of about 66%. An upgraded kitchen is a great way to add value to your home and your lifestyle. A recent survey of homeowners found that 66% of homeowners that renovated their kitchen report that they feel they eat healthier since the renovation. Now that is a great value.

Add A Home Office

Since the COVID 19 pandemic, which home renovations add the most value, has shifted a bit. Before COVID 19 it was nice to have a home office space. Afterward, home office space became one of the top ten things new buyers were looking for in a home.

Renovating your house to create a home office space can be done in a few different ways. You can do a multi room renovation and squeeze out some space, you can dormer your upstairs area, you can add an addition, or you can use a space that was originally dedicated for something else like a walk-in closet.

Adding a home office as a renovation project can add about $14,000 to the resale value of your home and give you a 67% return on your investment, according to Angi. That is a tremendous return and great value.

New Windows and Doors

New windows and doors are a great renovation project when you are wondering what home renovations add the most value. Old windows and doors are energy vampires. About 30% of energy losses can be blamed on old windows and doors according to the EPA. Replacing windows and doors not only helps to keep energy costs down but they come with an average ROI of 70% -80% (the only other renovation project that can compete with those numbers is a new roof).

Of course, replacement windows and doors also improve your home’s curb appeal. They keep out exterior noises (like Bob, who mows at 7am every Saturday) and they keep your house more comfortable. When you are ready to sell those replacement windows and doors you will add about $15,000 to the purchase price.

Renovate Your Basement

If you are lucky enough to have a basement, use it. A finished basement can add up to 1,000 square feet to your home. Basement renovation is the answer to what home renovations add the most value. You can greatly expand your living space without changing the footprint of your home.

Livable square footage increases the appraised value of your home. Moreover, buyers really want more space. According to a survey by NAHB, 21% of buyers report that since the pandemic they crave more space. The same survey found that 60% of buyers would be attracted to a home with a “specialty type room” like a “man cave” or a theater space. A finished basement can easily add value to your home. You can expect an ROI of about 75%. A finished basement can add $20,000 on the resale value of your house.

Transform Your Porch Into a Three-Season Room

Three-season rooms are basically walled-off or screened-in porches that have no HVAC installed in them. These rooms are a bit hit with buyers and should be on the what home renovations add the most value. This project is relatively inexpensive when you compare it to things like a new roof or a bathroom renovation.

A three-season room can be designated as a game room, office, den, dining space, or just a place for friends and family to hang out. You can expect an ROI of about 34% and it can add about $3000 in value to your home.

Choose Your Projects Wisely

There are great renovation projects that you can invest in that will not only make your home a better place to live in but will also add value to your home. Evaluate your renovation options carefully. According to a Bank of America survey, about 70% of homeowners plan a renovation project each year. The savvy ones are putting their renovation dollars where they will grow.

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