A home renovation is a perfect way to fix key functionality issues of your home and transform the style and aesthetics of a space. Beyond improving the flow and feel of your home, updates often contribute to a boost in your home’s resale value and can also provide a generous return on investment. However, not all home renovation projects reap the same returns. For this reason, you must be strategic with choosing the right project if a high ROI is important to you. To learn more, read on to discover which home projects deliver the most return on investment.
Home Renovations & Non-Monetary Returns
Besides contributing to your home’s resale value, home renovations offer non-monetary returns, like improved home functionality. Updating your home can create a more enjoyable environment for you to live in no matter how it impacts your home’s overall resale value. For this reason, a high ROI should not necessarily be the main deciding factor on remodeling unless you’re in the business of flipping houses.
4 of the Best Home Projects for a Greater ROI
If a high ROI is important to you, consider one of the following updates.
#1 Home Additions
Whether you expand your home to include a new room, build a second story, or finish an existing basement or attic, creating more liveable space typically results in a high return on investment. Although constructing a new room or adding a second story to a single-level home requires a large investment upfront, it also has the potential of 65% ROI. Finishing an existing basement or attic space is a cheaper alternative to adding square footage. Alternatively, building a mother-in-law suite in your backyard can also be a budget-friendly addition. Creating liveable space often involves finishing walls with insulation, drywall, and paint; installing new flooring; and updating heating and cooling.
#2 Kitchen Update
Nicknamed the heart of the home, the kitchen is one of the most frequently used places in a home. It is also a space that has the potential to reap a huge ROI for renovations, ranging from intensive makeovers to small upgrades. Larger renovations may involve rearranging kitchen cabinets, swapping old countertops for more high-end materials, and installing new flooring. Even smaller kitchen renovations, like replacing old kitchen appliances with newer models and painting existing cabinetry, can ultimately boost your home’s resale value.
Here are a few ideas to get you started:
- Create a coffee bar
- Add color to your cabinets
- Brighten up the room with new lighting
- Add a splash to your backsplash
- Add a chandelier above your kitchen island
- Add a kitchen island
#3 Bath Update
Addressing functional and aesthetic issues in high-traffic rooms has the potential to earn a big ROI and contribute to increased home resale value. Much like the kitchen, bathrooms are used daily, and renovations can range from small-scale to large. Keep in mind that larger makeovers often become quite expensive as moving plumbing fixtures often requires specialists to move/extend underground pipes; this ensures that tubs, toilets, showers, and sinks all have adequate draining capabilities. Smaller fix-ups in the bathroom can also have a tremendous impact on the functionality and style of your home. Some smaller fix-up ideas include updating fixtures, replacing cabinets or vanities, installing new flooring, or upgrading lighting. You may also consider:
- Refinishing or replacing your shower or tub
- Adding a standalone bathtub
- Installing seamless glass paneling
- Adding an extra sink or showerhead
- Installing new ventilation systems
#4 Curb Appeal
Exterior changes that improve your home’s curb appeal can also experience a noteworthy ROI. These renovations range from replacing windows and doors to replacing old siding or adding a fresh coat of paint. Adding a deck or patio to your home is another idea for an exciting project! Some budget-friendly ideas that can enhance your home’s curb appeal include:
- Painting the front door
- Planting a tree or two
- Installing window boxes
- Cleaning and pressure washing your driveway, walkways, fence, etc.
- Replacing the mailbox
- Coordinating your home’s colors to create a cohesive color palette
- Displaying your house numbers with customized plaques
- Adding window shutters
- Updating lighting
Are You Ready to Get Started?
We hope you enjoyed this guide on home projects with the potential to deliver the biggest ROI! If you’re ready to start interviewing potential designers for your next home renovation, get started today at The Anderson Studio. Find inspiration by viewing our portfolio. Or, contact our team today to start imagining your new exciting project.