One of the biggest considerations when taking on a home renovation project is often the return on investment (ROI). Knowing what type of renovation projects are likely to bring in the most bang for your buck can help determine which projects you should prioritize.
The most valuable investments in home renovation typically lie in the kitchens and bathrooms. Extensive kitchen renovations, such as updating cabinets, countertops, appliances, and flooring, have the potential to return up to 80% of the cost. That means if you spend $25,000 on a full kitchen remodel, you can expect to recoup around $20,000 back when it comes time to sell your house. Similarly, a bathroom overhaul can bring in an ROI of around 70%. Other areas where remodeling can be of great benefit include basement remodels, attic conversions, and flooring replacement.
In terms of specific projects that have the highest potential for ROI, outdoor living spaces top the list. The addition of a patio, deck, or other outdoor gathering area adds instant appeal by creating a pleasant outdoor entertainment area. Depending on the size and scope of the project, outdoor renovations can return as much as 135% of their cost. Curb appeal projects, such as landscaping, siding installation, and repainting all have the potential to bring in returns of up to 75%. And finally, window replacement is a great way to cut down on energy costs while potentially increasing the value of your home.
When planning a renovation project, it’s important to consider the overall ROI. Although some upgrades may come at a substantial cost, the return they bring in can be worth the investment. Projects like kitchen and bathroom remodels, outdoor living spaces, and curb appeal projects are all great ways to increase the value of your home and make it more desirable to potential buyers. Other projects, such as window replacement, can also help bring in returns as well as save you money over time. With careful planning and the right approach, a home renovation project can be a great way to increase the value of your home or bring some sorely needed updates.
Home renovations are becoming increasingly popular among homeowners looking to upgrade their living space or boost the value of their property. Being aware of the return on investment is a key factor when deciding which projects to tackle first. Kitchen and bathroom remodels tend to have the highest return on investment with the potential to return up to 80% and 70%, respectively. Outdoor living spaces can also bring in an impressive ROI, potentially netting as much as 135% of the cost. Other worthwhile renovations include basement remodels, attic conversions, flooring replacement, and landscaping/curb appeal projects. Homeowners should also consider window replacements, which can help reduce energy costs as well as increase the value of their home. Ultimately, by carefully planning and researching the return on investment for each project, home renovations can be a fantastic way to improve their home and their wallet.
This article was contributed on Oct 22, 2023
