Renovating your home can be an exciting chapter for homeowners. Your house is your sanctuary and place of rest. It only makes sense that when given the opportunity, remodeling is a great option to enhance the way you enjoy your personal space.
It can be easy for homeowners to become caught up in the moment and forget that not all home renovations are equal in terms of getting your return on investment (ROI). Your ROI will depend on a variety of factors including market trends, but there are some renovations that add more value to your home than others. If you are considering a home improvement project, take a closer look at the top seven renovations which can return the most value back to you as a homeowner.
1. Upgrade Your Kitchen
Executing a reasonably sized remodel to your home’s kitchen can recoup the most amount of money when it comes to remodeling the inside of your home. Your ROI can reach as much as 50-60% of your remodeling budget. Some upgrading ideas include:
- Replacing your cabinets.
- Upgrading your kitchen’s countertops.
- Repainting your kitchen and adding a new backsplash to accent the room.
- Adding new appliances can keep your kitchen modern.
- New floors can help revitalize any room in your home. Kitchens are no exception.
You may even look to update your furniture, add a fun new feature, or create an open concept kitchen. Each home is different and so too is its homeowners’ lifestyle. Find a project that fits your lifestyle and budget and enjoy a fresh take on your home’s kitchen that will also add value.
2. Remodel Your Bathrooms
Updating your bathroom can become a costly endeavor if you are not careful, but homeowners can do well by planning ahead and sticking to a plan. The key here is not to go overboard as plumbing costs continue to climb. Nationally, homeowners can enjoy an average ROI of just over 70% when upgrading their bathroom.
Simple upgrades such as a new sink fixture or a new toilet can help improve functionality all while breathing new life into your space. You can also redesign your bathroom through new organization features, new decor, a fresh coat of paint, and/or revamping your floors. Larger projects such as installing a new shower or bath should be carefully considered due to the costs associated. A new showerhead can go a long way in helping you enjoy your bathroom at a fraction of the cost.
3. Consider Adding a Rental Unit to Your Property
- Rental properties can be the cherry on top of the proverbial cake for prospective home buyers. In other words, it won’t hurt your chances of selling your home and may be a desirable, unique feature for many.
- Livable, quality square footage is typically something that delivers value for homeowners.
- Rental revenue can help homeowners pay for the overall cost of the property.
- Rental units provide tax break opportunities.
- When not in use, rental spaces can provide privacy for guests visiting your home, or provide an additional living space for family and friends in need of a place to live.
There are many benefits that come from adding a rental unit, but before you rush to take on this endeavor, it is important to remember the following considerations:
- Renting a space on your property can provide challenges such as a lack of privacy and added responsibilities as a landlord.
- You’ll need to make sure that your affairs are in order. This includes checking local zoning laws and ordinances which may forbid building rentals, inquiring about the right insurance policies, ensuring you have adequate space for your rental/parking, and keeping a detailed record of your rental income for tax purposes.
- Finding and retaining tenants takes time, money, and other efforts.
- Be sure to avoid a common mistake in turning an important portion of your property into a rental, while neglecting its original use. A common example is when homeowners convert their garages into rental spaces. Sure, having a rental unit is nice for all of the above reasons, but future homeowners are likely going to want a garage. You may end up missing its intended function too.
It takes a certain type of homeowner to take on such a renovation, but it can be helpful in multiple ways for the right household. Just be sure to consider both sides of the coin before taking on this project.
4. Spruce Up Your Home’s Curb Appeal
Making a first impression counts in almost any aspect of life. Your home’s curb appeal is its first impression with the world. A drab paint job, a garage door that is past its prime, or other damaged features can hurt the perception of your home. Tidying up the front of your home can be an inexpensive way to send an inviting message. Here are some simple ideas to boost your home’s look:
- Install a new front door.
- Apply a new coat of paint to your home.
- Replace any damaged features such as shutters, garage doors, gutters, or siding.
- Give your home more character with modest, tasteful landscaping.
- Add features to your front lawn such as a new irrigation system or outdoor lighting.
- Create a decorative walkway.
- Repair broken fence boards or install a new fence altogether.
The upkeep of your home may cost a bit up front, but it is repaid by keeping your home from falling behind others in your neighborhood. Some routine maintenance can even help you maintain or lower other expenses. For instance, repairing an old roof can help you protect from water and wind damage, increase your curb appeal, and retain a lower rate for your home insurance premiums.
5. Add Energy-efficient Features to Your Home
Energy-efficient features can provide your home with value as both an attractive addition as well as a lowering your energy costs. These features may also overlap some of the other suggestions on our list such as a new appliance or light fixture; however, energy-efficient windows and smart home devices are also options.
If you are building a home, or in the position to conduct a major remodel, your options expand further. You may consider looking at energy-efficient building materials, techniques, and features that will help you use less energy. Solar panels may also be a viable solution to reduce your carbon footprint while adding an attractive feature to your home.
These features can be major selling points if you ever sell your home, but careful consideration should be made. Energy-efficient features provide their best ROI over time. Overdoing any renovation can cost you more money than you’ll recoup, so be sure to only do such projects after careful consideration.
6. Build an Inviting Deck or Patio Space
Backyard projects can add attractive features to your home that help add value. Bob Vila provides plenty of outdoor options for homeowners, including adding a deck or patio which provides positive ROIs.
The fun here revolves around the options homeowners have. You can do a lot with your outdoor space, depending on your property, and the options can be tailored to your lifestyle:
- Outdoor kitchens and bars can help your home become a social hub.
- An inviting deck or patio is great for those who enjoy relaxing outdoors.
- An outdoor fireplace can help homeowners in colder climates take advantage of a beautiful, chilly night.
- A small garden or landscaping feature can add an aesthetic appeal while keeping your renovation costs low.
Understand your lifestyle and budget accordingly when renovating your outdoor space. Your ROI will come from much more than your home’s value by providing a meaningful improvement to the way you and the other members of your household enjoy your home.
7. Freshen Up Your Home’s Cosmetics Inside
The same principles that apply to places such as your home’s kitchen or bathroom can also apply to your entryway, hallway, or mudroom. It’s also similar to your home’s curb appeal. You’ll want to keep up with the times inside by revamping your look from time to time.
Simple home improvements such as a fresh coat of paint, patching up small holes, or adding a modest new look to an existing room, can help keep your home modern without breaking the bank. Tear down the wallpaper, replace your carpet, or upgrade your living room’s lighting. A small change can make a huge difference.
Home Improvement Projects to Avoid
The right home renovation adds value to your home, but some projects that may seem like a good idea will do quite the opposite. Home improvement projects can get out of hand easily, but with the right planning, you’ll be able to avoid needless construction and reap the fruits of your labor. Avoid these three home improvement projects at all costs:
Going Overboard on Any Project
The recurring theme with any home improvement project is to take it slow and avoid going over the top. Not only will you be unlikely to see as positive an ROI, but you’ll be adding a ton of stress to your household for no reason. Even if a large project makes sense for your needs, you may want to rethink doing everything at once. Large projects can disrupt the use and flow of your home for weeks if not months. Taking your project piece by piece can help offset the lack of access you may experience, spread out the costs associated with the project, and relieve some of the stress involved.
Note: Should a large home improvement project become unavoidable, be sure to reach out to your home insurance carrier. Adjustments may be necessary to remain protected and additional coverages should be considered while your home is under construction from a large enough project. There are a lot of things to consider when it comes to large projects including the value of your home, the cost of rebuilding new features, and other factors which may affect your premium and coverage needs.
Installing a Swimming Pool
A swimming pool may seem like the perfect summer oasis, but don’t expect it to add as much value as you may think. Yes, it’s true, you may be able to add as much as 7% to your home’s value with an inground pool, but this is only looking at the surface.
First off, installing a swimming pool is very expensive for homeowners, averaging around $35,000 for the installation with some reaching tens of thousands of dollars more. Next, is the consideration that swimming pools limit a home’s value to prospective buyers and may even lower your enjoyment should a lifestyle change occur. When selling your home, you’ll want to consider that many prospective buyers with small children may be turned off by a pool due to the risk of drowning and the increase in homeowners insurance premiums. You’ll also want to factor in the added expense of maintaining a pool when calculating the value it may add.
Overdoing your landscape can hinder your home’s curb appeal, and with it, your home’s value. The cost of landscaping can grow faster than ivy, and you can risk greetings a look that doesn’t compliment your neighborhood’s. You’re also opening up your home to potential theft and vandalism. Thieves love overly landscaped lawns which provide extra coverage and help their ill intentions go undetected. Tasteful landscaping is a great way to add a boost to your home’s look, but make sure you keep it in check to avoid a negative ROI and keep thieves away.
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