If your home is starting to feel dated or less functional, it might be time to renovate it. While your own needs and taste should be the primary reason for any home reno project, it’s also worthwhile to consider improvements that will increase your property’s value. Here’s a look at how to approach a renovation project.
Before you begin
Chances are, you might list your house for sale at some point. In that scenario, you want your property to have wide appeal to potential buyers, so your choices matter beyond just your own taste. For instance, you could favor a dramatic bathroom tile color, but that may put off some buyers. The better option is to pare down your plan a bit and opt for a more neutral shade, with splashes of bold color in a smaller area.
Home renos are expensive, and it’s not uncommon for the cost of a home improvement project to exceed the initial estimate. Once you’ve hired a reputable contractor, work closely with them to ensure the end result is as close to what you envisioned as possible. Expect setbacks like delays in receiving materials, unforeseen issues that expand the scope of work, and weather setbacks. That’s why it’s so important to hire someone you trust and to try to establish a good rapport with them.
Finally, it’s a myth that a renovation will give you a dollar-for-dollar return on investment (ROI) if you sell your house. While a high-quality upgrade raises the value of your property, the primary reason for any improvement should be to allow you to enjoy your home and meet your immediate needs. That said, following are four home reno projects to consider that will increase the property’s value.
Kitchen remodel
The old saying is true—the kitchen is the heart of the home. This is where families gather to cook, eat, and connect with one another. Prospective buyers are seeking a space that’s modern, functional, warm, and inviting. Whether you do a complete kitchen renovation or minor upgrades, research shows you can receive a return of about 60% on the cost at point of sale.
Installing new kitchen cabinetry, countertops, and backsplashes might be the first improvement you’re thinking of. Depending on their current condition and how dated they appear, you could do a complete overhaul, or keep what still works for you and make a smaller change. You might opt to paint the cabinets or only replace the doors rather than put in completely new ones, for example. Other upgrades include lighting improvements, specialized storage, and sink and faucet replacements.
Contemplate the aesthetic you want and how the kitchen complements the rest of the home. Remember, you can accomplish a lot with new kitchen drawer knobs, faucets, and light fixtures.
Bathroom enhancement
Close behind the kitchen in terms of ROI are bathroom upgrades at returns of around 50%. Since this space gets a lot of use, it’s critical that it be functional and kept to a certain standard. Fixing plumbing issues and replacing older bathtubs, sinks, shower stalls, and toilets with more current models will go a long way toward enhancing your comfort and making the room more attractive to house hunters. New tiling for floors and shower/bath walls also makes a good impression and protects the room from moisture damage.
To appeal to buyers, go for a bright, clean appearance. A shower with the most recent innovations for safety and convenience is an excellent choice. A low-flow toilet with a soft-close seat is another great upgrade for sustainability and comfort. Be mindful that you can get a lot of mileage from new brushed nickel or stainless-steel fixtures.
Energy-efficient reno
Homebuyers will entertain a higher selling price for a home that has energy upgrades. They know energy-efficient features will lower their utility costs and save them money over time as energy prices rise. Start with kitchen and laundry room appliances that are certified as energy-saving.
Installing double-paned windows and energy-efficient doors can reduce heating and cooling costs for the house. Proper insulation in walls, attics, crawl spaces, and around windows and doors is also key. If you want to go further, you might consider a smart thermostat to monitor and adjust energy consumption, or even rooftop solar panels. Although the ROI will vary based on the particular improvement, every minor move to save energy can help elevate your property’s listing price when you’re ready to sell.
Basement conversion
If your family is growing, you could be planning to renovate the basement to add an extra living area. This is one enhancement demonstrated to have a ROI of about 70%. Anyone in the market for a property can see the benefit in having more living space. If you can afford it, the installation of a bathroom in the basement can provide an even stronger ROI.
With or without a bathroom, a finished basement adds value because it offers enormous flexibility—the space can be used as a family room, entertainment space, guest room, or office for a home-based business. The additional heated square footage will show well in your home listing.
In closing
Although home renovations are pricy, focusing on kitchen, bathroom, basement, or energy efficiency upgrades offers superior ROI—and these upgrades will likely improve your own enjoyment of your home as well.