Whether you’re planning to sell your home soon or simply investing in its future value, certain home improvements can significantly boost resale value. Not all renovations are created equal, however. Some projects provide a higher return on investment (ROI) than others, making them more worthwhile for homeowners focused on maximizing their profits. Below are the most common home improvements that tend to increase the value of your home when it’s time to sell.
1. Kitchen Remodel
The kitchen is often considered the heart of the home, and prospective buyers are usually willing to pay a premium for a modern, functional, and visually appealing kitchen. A full kitchen remodel can be expensive, but even minor updates can offer substantial returns. Consider updating:
- Cabinetry: Replacing or refacing cabinets with modern styles.
- Countertops: Installing durable, high-quality materials like granite, quartz, or marble.
- Appliances: Switching to energy-efficient stainless steel appliances.
- Lighting and Fixtures: Adding under-cabinet lighting, new hardware, and modern light fixtures.
On average, homeowners can expect to recoup around 60%-80% of their investment on a kitchen remodel.
2. Bathroom Renovation
Bathrooms are another key area that buyers pay close attention to. A dated or cramped bathroom can turn off potential buyers, but a fresh, modern bathroom can add serious value. Key updates include:
- Walk-In Showers: Adding a sleek walk-in shower with glass doors can make the bathroom feel larger and more luxurious.
- New Tiles and Fixtures: Updating tiles, adding a double vanity, or upgrading to modern faucets and hardware can give the bathroom a fresh look.
- Energy-Efficient Features: Installing water-saving toilets, faucets, and showerheads appeal to eco-conscious buyers.
A mid-range bathroom remodel typically yields an ROI of about 60%-70%, while adding an extra bathroom can increase the home’s value even more.
3. Curb Appeal and Landscaping
First impressions matter, and curb appeal is a huge factor when it comes to selling your home. Buyers often decide within moments of seeing a property whether they’re interested. Easy, cost-effective improvements include:
- Exterior Paint or Siding: A fresh coat of paint or new siding can completely transform the exterior and protect your home from the elements.
- Landscaping: Trimmed shrubs, new plants, flower beds, and a well-manicured lawn can make your home stand out.
- Updated Front Door: A new front door, especially one with bold color or modern design, can make a home feel more inviting.
These improvements can add up to 7%-14% to your home’s value, depending on the condition of your home and neighborhood.
4. Energy-Efficient Windows and Doors
Energy efficiency is becoming increasingly important to homebuyers. Replacing old windows and doors with energy-efficient models not only improves comfort but also reduces utility bills—an appealing feature for many buyers. Energy-efficient improvements that yield strong ROI include:
- Windows: Double- or triple-pane windows with low-E (low emissivity) coatings.
- Insulated Doors: Fiberglass or steel entry doors with better insulation properties.
- Improved Insulation: While less visible, adding insulation to attics, walls, and basements can significantly lower energy costs and make your home more marketable.
Upgrading to energy-efficient windows and doors can yield up to 70%-80% ROI, and they often pay off even before you sell through reduced energy costs.
5. Finished Basement or Attic Space
Adding usable living space is one of the most effective ways to increase your home’s value. Converting a basement or attic into a functional living area such as a guest bedroom, home office, or entertainment room is a great way to add square footage without the expense of a full addition.
- Finished Basement: Home theaters, gyms, or extra bedrooms are popular basement conversions.
- Finished Attic: Attics are often converted into cozy bedrooms or home offices, which can appeal to buyers looking for additional living space.
A well-done basement or attic conversion can yield a 70%-75% return on investment, depending on the market and the quality of the finish.
6. Deck or Patio Addition
Outdoor living spaces are highly desirable, especially in regions where the climate allows for year-round outdoor activities. Adding a deck or patio creates a space for entertaining, relaxing, and adds to the overall livable space of the home. Consider adding:
- Wooden Deck: A wood deck is typically more affordable and offers a classic look.
- Patio: Concrete, brick, or stone patios can be more durable and give a home a more upscale feel.
- Outdoor Kitchen or Fire Pit: For higher-end homes, adding features like outdoor kitchens, built-in grills, or fire pits can significantly boost appeal.
On average, homeowners can recoup around 65%-75% of their investment on a deck or patio addition, but in some markets, it can be even higher.
7. Open Floor Plan
Many buyers today prefer open-concept homes, where the kitchen, dining, and living areas flow into one another. This design creates a sense of space and makes homes feel larger and brighter. If you have the option, knocking down a non-structural wall to create an open floor plan can be a relatively simple way to boost your home’s value.
This improvement is particularly popular with younger buyers and families who appreciate the versatility of open spaces for entertaining and everyday living. While the ROI varies depending on the cost of removing walls and rerouting utilities, this change can make your home much more attractive to buyers.
8. Smart Home Technology
As technology becomes an integral part of daily life, more homebuyers are looking for properties equipped with smart home features. These upgrades can include:
- Smart Thermostats: Energy-saving devices that allow homeowners to control their heating and cooling from a smartphone.
- Smart Security Systems: Video doorbells, security cameras, and automated locks appeal to safety-conscious buyers.
- Smart Lighting and Appliances: These not only add convenience but also make your home feel modern and connected.
While smart home technology won’t drastically increase your home’s appraisal value, it can make your home stand out and help it sell faster in competitive markets.
Conclusion
Not all home improvements are equal when it comes to adding resale value, but focusing on areas that enhance functionality, appeal, and energy efficiency is a smart way to boost your home’s marketability. Kitchen and bathroom remodels, outdoor living spaces, energy-efficient updates, and curb appeal enhancements are among the best ways to ensure a high return on investment. Whether you’re planning to sell soon or simply want to increase your home’s value, these home improvements can make your property more attractive and increase its selling price when the time comes.