Current and prospective homeowners have been taking an increased interest in renovations, even as they understand they may not see the full return right away. The bigger the home improvement project, the less likely it is to pay for itself on a quick sale. Still, some remodels pay off over time with the improved use and enjoyment to you and your family every day. (That should be the end goal of a reno, right?)
This is because the home improvements with the lowest return on investment tend to come with a high price tag and a lot of work to improve an existing space. For example, while adding 1000 square foot or more to a home can raise the home value as much as 30%, adding square footage is a large and costly undertaking. That initial investment to build the new rooms won’t be recouped fully in a resale.
1. Major Kitchen Remodels
Kitchen renos are a big deal. This is an opportunity for you to create your dream kitchen to enjoy.
Doing a total overhaul, taking it down to the “bare bones” can be incredibly expensive and often isn’t necessary. Keep in mind that while a prospective buyer will ooh and ahh over a freshly overhauled kitchen, the deep reno work (ripping out and replacing drywall, etc.) isn’t likely to move the needle on the actual value of the home, particularly where the space, function and utility of the room remains the same.
If you have this work done because you want to, that’s totally fine but understand that the improved value can be achieved without breaking the bank. I’m NOT saying to skimp or to cut corners. If you’re going to do it, it should be done right. Just understand that when we’re talking ROI (return on investment), you’re going to spend A LOT more having this work done and just aren’t likely to recover the full cost of those investments.
Some less expensive improvements with higher returns include:
- Repainting kitchen cabinets and/or changing out the hardware
- Replacing or adding a backsplash
- Restoring hardwood floors (some even opt to paint them)
- Replace the lights
- Replace the countertops (butcher block and concrete can provide an elevated look when granite or marble are beyond the budget)
- Add a new kitchen sink
- Upgrade the range hood (a custom cover can take a funky old hood to a highlight of the room)
2. Major Bathroom Remodel
The full/extra costs of a major bathroom renovation may not be reflected in the resale value, depending on the work done.
Some simple upgrades that can make a great difference in the impression of the room include updating faucets and fixtures, replacing mirrors and dealing with that busted old exhaust fan.
More costly upgrades but ones which come with a larger wow factor include new tile throughout and/or a new vanity. A sauna enclosure and a walk-in shower with separate bath are also classy upgrades if the room is large enough to accommodate them.
3. Attic or Basement Room
Creating a flex room from a basement or attic space can be pricey depending upon the state of the space you’re starting with BUT can also be a great opportunity to improve the enjoyment and functionality of the home.
This is especially helpful in a time where people are looking for more rooms and/or homes that give them more space to do as much as they can from home. While tiny homes and minimalistic living were on the incline for a time, shifts that have transpired over the past couple years have spurred a need for greater home solutions.
Homeowners and buyers are increasingly looking more for space that can be utilized as a home office, home gym or dedicated homeschooling zone for the kids. Of course, you may have the option to accomplish this end with a home addition but where this is cost-prohibitive or just not in the cards, you may find a solid solution in converting an attic or basement space for these uses.
*Note: be sure to check with your local municipality for any permitting requirements that may be needed before embarking on one of these projects!
While some would swear by the adage “Go big or go home!” understand that when it comes to your home, improvements should be done as part of the ongoing maintenance of the home but should be tackled in a way that provides you the greatest enjoyment of the space as well as the best ROI possible.
If you’re not sure what projects will add the most value to your home, just ask! I’m always happy to help!
