When it comes to home improvement projects that increase property value, these are the best home renovations for homeowners looking to boost their homes’ aesthetic, resale value, or efficiency. Considering that homeownership is one of the most significant investments Americans make in their lives, increasing the value of your home is ideal. Surprisingly, homebuyers often recoup their home renovation project investment exponentially when they use their money and effort wisely.
The best home renovations are remodeling projects that offer more than just updated living; when homeowners put their remodeling bucks in the right place, these updates often become an excellent investment. Additionally, some improvements provide a higher return on investment (ROI) than others.
Here are the top ten best home renovations that often offer a substantial ROI:
1. Garage Door Replacement
Upgrading the garage door for better functionality and aesthetics is a relatively simple improvement with a good ROI. According to Zonda’s 2023 Cost vs. Value Report (CVV), exterior projects yield a much higher ROI than interior renovations. Proof of this is in the report: a garage door replacement can offer up to 102.7% ROI, clearly making the upgrade worth the effort and expense.
2. Kitchen Remodeling
On average, Americans spend over 400 hours in their kitchens every year. The kitchen is a powerful focal point and the heart of most homes. Keep in mind that crazy-expensive major kitchen remodels don’t guarantee ROI. By and large, the most beneficial kitchen renovation options are new countertops and backsplashes and upgrading or refinishing or refacing cabinets. Obviously, whether it is a minor kitchen remodel DIY style, like simply replacing some light fixtures or a total overhaul, spending those 400 hours a year in a blissfully styled kitchen will significantly improve any homeowner’s quality of life.
3. Bathroom Renovation
Although modernizing bathrooms is on the list of best home renovation investments, there is a right and a wrong way to go about it. Similar to kitchens, high-cost renovations seldom provide significant ROI benefits. That being said, bathrooms provide opportunities to reap the health benefits of relaxation, which is often worth the financial investment.
With Americans racing from job to gym, gym to school, finding time to get the kids to sports, tutoring, and cooking, it is no wonder more homeowners desire a spa-like experience at home. Even a simple bathroom remodel, such as adding new fixtures, a fresh coat of paint, and improving the overall aesthetics, can not only appeal to potential buyers but also provide the much-deserved detox space that many homeowners desperately need.
4. Curb Appeal
Given that front door presence and curb appeal are second only to location, location, location, don’t sleep on these upgrades. Admittedly, many homeowners overlook the benefit of enhancing the exterior of their home once they have lived there for a while. In fact, a simple entry door replacement yields 100.9% ROI. Manufactured stone veneers can make a solid first impression on potential buyers and ring in with a 102.3% ROI. Whether it’s a landscaping facelift, a window replacement upgrade, fiber-cement siding, or some new paint colors for a fresh pop, a front yard makeover can really make a difference. Given these points, realtors are great resources for understanding the best home renovations that entice potential buyers and drive home value.
5. Energy-Efficient Upgrades:
Who doesn’t like to save money and reduce their carbon footprint on our planet? Installing energy-efficient air conditioning units and getting new windows, doors, and appliances not only adds value but also lowers utility costs. Overall, the #1 best home renovation project, offering a 104% ROI immediately, is HVAC system Conversion/Electrification. With the price of fossil fuels rising, electric heat pump technology has evolved, leading many homeowners to contemplate the transition from fuel-burning furnaces to heat pump electrification. Homeowners see a three-part benefit with this renovation of implementing new heating technology. Firstly, they use less energy, and secondly, they lower their monthly utility bills. Thirdly, the new HVAC conversion increases home equity, increasing home value overall.
6. Adding a Deck or Patio
It’s true outdoor living spaces often attract buyers! Adding a deck, sunroom, or a new patio can make a home feel larger than it actually is by providing additional usable square footage and additional opportunities for dining and recreation. After all, who doesn’t love more space? Creating an inviting outdoor space with an indoor/outdoor feel offers a much cheaper average cost per square foot than doing a complete addition.
7. Basement Finishing
Converting an unfinished basement into a functional living space, such as a bedroom or entertainment area, can add value and, when permitted correctly, can boost square footage and provide additional storage. Yet another added benefit of a basement refinishing renovation is the potential to add rental income opportunities. Basements are ripe opportunities to provide supplemental income, and in many cases, the extra rental payments can pay off the renovation loan, making the financial impact very minimal.
8. Smart Home Features
How did we all live before Alexa, Siri, and Google Assistant? Whether we like it or not, smart assistants, smart televisions, homes, and appliances are here to stay. Consequently, the more integrated a home is, the better its technological accessibility, thus providing a more seamless transition from one home to another. Integrating smart home technology, such as thermostats, security systems, and lighting, can make a home more appealing to modern buyers.
9. Flooring Upgrades
High-quality and durable flooring options, such as hardwood floors or tile, can enhance a home’s overall look and feel. Of course, there is nothing wrong with upgrading to laminate plank tiles or even upgrading carpets in cozy living room spaces. Flooring upgrades look clean and new, and immaculate homes sell better and feel better!
10. Adding a Room
Adding an extra bedroom or living space can significantly increase a home’s value if feasible. Additionally, throughout the pandemic and the global shutdown, the world learned the importance of home office space. One of the best home renovations is always adding actual square footage, and a work-from-home area is an excellent opportunity to create home equity.
The first step is understanding the best home renovations to consider, and the second step is partnering with qualified professionals.
Before embarking on any renovation project, it’s essential to consider the local real estate market, the specific needs of your target audience, and your budget. Additionally, hiring a professional for significant renovations can ensure the work is done correctly and meets local building codes.
Remember, factors affecting ROI can vary based on location, the quality of materials used, and the current market conditions. It’s advisable to consult with local real estate professionals and contractors for personalized advice based on each specific situation. One excellent resource is the National Association of Realtors. These professionals understand each unique housing market, which can give a homeowner a leg up regarding resale values.
In the end, the best home renovations are the ones that make a house feel like a home. Naturally, finding financing for these new upgrades is paramount, and securing a home equity loan with a great interest rate never hurts. Connecting with a trustworthy and experienced lender is equally important as choosing which renovation offers the best ROI. By finding a lender prepared to make every renovation dollar count, homeowners can rest assured knowing growing home equity and improving their quality of life is of the utmost importance.
Let’s connect you with a lender that can help finance your home remodeling dreams and get your property ranking in the housing market.
The steps are simple:
1. Schedule a Call: An experienced loan officer can discuss your lending needs and guide you through the possibilities.
2. Get Approved: We’ll help you through the mortgage application process and facilitate the steps for approval.
3. Exhale: Put your feet up and feel secure knowing you made the best decisions about your home loan.
With proper guidance, you can get your first home, accommodate your growing family, and start that renovation project—whatever goal is on the horizon. An alliance with Mortgage Insiders will give you the confidence to know that your mortgage loan is setting you up for financial success. Mortgage Insiders offers today’s latest financial news and mortgage trends. Check out their channel for current events.
