Home is where the heart is, but it can also be a place to see an impressive return on your investment if you renovate wisely. According to Renofi, the national average ROI for home remodeling projects is around 70%. However, not all home improvements are created equal. There are certain upgrades that promise to offer the best return on investment home improvement, while others might just end up being an aesthetic appeal with minimal financial benefit. Let's take a closer look at how you can get the best return on investment for your next home improvement project.
Average Return on Investment by Home Improvement Project
When considering where to invest your money for the most significant return, knowing which projects typically offer the best bang for your buck is essential. According to Remodeling by JLC, here's how some of the most popular projects fare in terms of ROI:
| Project | Avg. ROI % |
|---|---|
| Midrange Bathroom Remodel | 60.1% |
| Minor Kitchen Remodel | 72.2% |
| Major Bathroom Remodel | 54.8% |
| Major Kitchen Remodel | 57.4% |
| Garage Door Replacement | 93.8% |
| Wood Deck Addition | 65.8% |
| Replace Windows | 68.6% |
Essential projects that uplift ROI
Kitchen overhaul
A kitchen remodel isn't just about making your kitchen look better; it's about making your life easier and your home more valuable. Think about it – you can upgrade your appliances to save on energy bills, add more storage space to declutter your countertops and create a layout that flows better. Plus, when you decide to sell, a renovated kitchen can sweeten the deal. Buyers love a modern, functional kitchen, and it often means you can fetch a higher price for your place. Who doesn't want that?
Set the mood
Repainting your home isn't just about giving your walls a fresh look; it's a smart move for your maximizing your ROI. First off, it's cost-effective. A can of paint and a few hours of your time can transform a room, making it more appealing to potential buyers if you decide to sell down the road. A new coat of paint can also work wonders for your home's perceived value. It can make rooms feel larger, brighter, and more inviting, translating into a higher selling price.
Revitalize your wooden floors
Wooden floors are a timeless classic, and when they're well-maintained, they can significantly increase your home's value. Sanding and refinishing worn-out wooden floors can breathe new life into them, making them look brand spanking new without breaking the bank.
But it's not just about appearances. Wooden floors are durable, and by giving them a facelift, you're ensuring they'll last longer. This means fewer maintenance hassles in the long run. Plus, potential buyers love the look and feel of polished wood, making your home more attractive in the market.
But it's not just about appearances. Wooden floors are durable, and by giving them a facelift, you're ensuring they'll last longer. This means fewer maintenance hassles in the long run. Plus, potential buyers love the look and feel of polished wood, making your home more attractive in the market.
Incorporate mirrors
Mirrors have this remarkable ability to make spaces look larger and brighter, which can instantly boost your home's appeal to potential buyers. They can also reflect natural light, reducing the need for extra artificial lighting and lowering energy bills. Moreover, mirrors can enhance the overall ambiance of a room. By creating a sense of depth and elegance, they can help you leave the right impression.
Introduce updated fittings
Fittings, like faucets, light fixtures, and doorknobs, might seem like small details, but they pack a punch when it comes to overall appeal. Swapping out old, worn-out fittings for sleek, contemporary ones can breathe new life into your space. Updated fittings can make your home look well-maintained and up-to-date, which can be a deal-breaker for potential buyers.
Elevate the home's outer charm
The exterior of your home is the first thing potential buyers see, and as they say, first impressions matter. So, giving your home's exterior a facelift can be a smart move. Start with landscaping – a well-maintained lawn, trimmed bushes, and colorful flowers can make your home look inviting and well-cared-for. Consider a fresh coat of paint for your siding or front door. A little color can go a long way in making your home stand out and look modern. And don't forget about maintenance. Fixing up any cracks, peeling paint, or broken fixtures not only makes your home look better but also ensures it's in top-notch condition.
Craft purposeful areas
Potential buyers are always on the lookout for functional space. A dark and dingy basement or an attic filled with cobwebs doesn’t appeal to most buyers. Convert that empty nook into a cozy reading spot or a home office, and watch the ROI climb. By finishing these spaces, you add usable living space that can significantly increase the value of your home.
Spruce up the lavatories
Whether a major bathroom remodel or a minor bathroom touch-up, bathroom renovations always rank high in ROI home improvements. Potential buyers often look for bathrooms that feel clean, modern, and functional. Even simple changes, like new fixtures or tiles, can make a world of difference.
Aspects That Influence Resale Worth and ROI
Community surroundings
The neighborhood your home resides in plays a pivotal role in determining its value. A well-kept, thriving community often results in higher home prices.
Geographical factors
Local trends and the appeal of certain home projects in a region can affect the ROI. For example, a swimming pool might add more value in warmer climates than colder ones.
Present market conditions
The real estate market can be fickle. Current market trends can heavily influence the value and ROI of certain home improvements.
Project duration
If you're planning to sell in the near future, long-term projects may not be the best choice. It's essential to match the timeline of the remodeling project with your future plans.
Unforeseen expenses
Every home renovation can come with unexpected costs. Being prepared for these hiccups ensures that you don't lose money and can maximize your ROI.
About The West Michigan Life
With over three decades of experience, Robert Antonini of The West Michigan Life is regarded as one of the top real estate agents in the state. Robert’s integrity, work ethic, and solution-oriented approach ensure his clients always get what they deserve. If you're looking to buy or sell a home or have any questions about the Michigan real estate market, contact The West Michigan Life today.
*Header photo courtesy of Shutterstock
