The sweet smell of sawdust and the euphoric sound of hammers tapping away—there's something incredibly fulfilling about a home improvement project. Whether you're sprucing up to sell or simply enhancing your living space, everyone is after the best return on investment (ROI) home improvements. According to Renofi, the national average ROI for home remodeling projects is around 70%. But with so many options, how do you make the right choice? Let’s dive into the projects that provide the best bang for your buck.
Average Return on Investment by Home Improvement Project
Before you pull out your tool belt, let's look at some solid figures. Understanding which projects offer the highest ROI can guide your decision-making process. According to Remodeling by JLC, the average ROI percentages for various home improvement projects are as follows:
|
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% |
Projects to enhance your return on investment
Giving your kitchen a minor facelift
A minor kitchen remodel takes the cake when it comes to ROI home improvements, with an average ROI of 72.2%. This doesn't mean you have to go all-out with a complete overhaul. Even small updates like replacing old fixtures, adding a new backsplash, or installing energy-efficient appliances can yield significant returns. Keep in mind that most buyers prioritize the kitchen when looking for a new home, so your efforts here will likely pay off.
Applying a fresh coat of paint
Never underestimate the transformative power of a fresh coat of paint. It’s one of those home improvement projects that doesn't break the bank but can significantly increase your home's appeal. Neutral colors generally attract the broadest audience of potential buyers and provide a blank canvas that allows them to envision their own decor.
Breathing new life into hardwood floors
Hardwood floors can wear down over time, but refinishing them can give your entire home a face-lift. Refinished hardwood floors not only look beautiful but also appeal to most buyers, adding more value to your home and offering a high ROI.
Installing new mirrors
This may seem like a minor detail, but a well-placed mirror can make any room feel more spacious and inviting. Whether it’s the living room, bedroom, or especially the bathroom, a new mirror can be a very smart investment.
Updating hardware fixtures
Door handles, cabinet knobs, and faucets may seem insignificant, but they contribute a lot to the overall look and feel of your home. Swapping out dated hardware can make a big difference in how modern your home appears, and it’s an easy, cost-effective way to enhance its resale value.
Sprucing up the exterior
The first thing potential buyers see is the exterior of your home. Simple exterior improvements like power washing the walls and walkways, painting the front door, and cleaning up the garden landscaping can increase curb appeal and, subsequently, the value of your home.
Enhancing your front yard with greenery
Planting low-maintenance plants, trees, and flowers can make your front yard look neat and inviting. It's a simple way to boost your home’s curb appeal, and a neat driveway and garden often signal to potential buyers that the inside is well-maintained too.
Adding functional rooms
Why let any square footage go to waste? Transform that empty room into a home office, hobby room, or a cozy family room. Creating additional usable living space without any major construction is often a good investment that most homeowners appreciate.
Tackling the attic and basement
Don’t let your attic and basement remain dark and dingy. Turn them into functional spaces like a game room, storage area, or even an extra bedroom. A well-planned basement remodel or attic conversion can greatly contribute to your home’s value.
Revamping the bathroom
From minor bathroom remodels like new tiles and fixtures to major bathroom renovations like expanding the main bathroom, improvements in this area usually offer a decent ROI. Make sure to take local trends into account and consult a local realtor for advice tailored to your area.
Factors that influence resale value and ROI
Geographic location
Regional preferences can play a significant role in what home renovations offer the best ROI. For instance, a wood deck addition may offer higher returns in a climate where outdoor living is more feasible year-round.
The current property market
If it's a seller's market, you might not have to do as much to achieve a high ROI. In a buyer’s market, you'll need to make your home stand out more. Always consult a real estate agent who is up-to-date with the real estate market trends in your area.
How soon you plan to sell
The timeline for selling your home can affect your renovation choices. If you're planning to sell in the near future, you might focus on projects that offer quick returns like a fresh coat of paint or new hardware.
Hidden costs and potential pitfalls
Always budget for unexpected expenses. Whether it's a sudden plumbing issue while updating the bathroom or finding out you need to replace electrical wiring, unexpected issues can eat into your ROI. A general tidy up and regular maintenance can often save money in the long run by avoiding these unpleasant surprises.
In the grand scheme of things, not all home improvements are created equal. But armed with this comprehensive guide, you’re well on your way to making smarter choices for your next home renovation project. Happy renovating!
About Eric Schmitt
Eric Schmitt is a Marin County native who skyrocketed to prominence, earning the title of #1 New Agent in North America for sales volume in his inaugural year with Coldwell Banker. If you're looking to buy or sell a home or have any questions about the California real estate market, contact Eric Schmitt today.
