Purchasing a home is a considerable investment, and whether you plan to put it on the market quickly or stay long-term, adding value is a huge incentive. When considering home improvements, it’s imperative to consider which ones will provide the highest return on investment (ROI) at the closing table.
Home renovations are an excellent way to add substantial value to your home. While most won’t give you a 100% ROI, many will
provide up to 70%, especially those that add additional square footage or functional space. Home improvements are the best methods to improve your ROI and quality of life simultaneously because you’re putting work into an appreciating asset.
The work doesn’t have to be costly or time-consuming, either. Complete renovations often come with hefty price tags and won’t add much more value than minor improvements. The last thing you want is to sink additional capital into a project and not recoup it all when it comes time to sell. Taking on minor projects with more appeal will pay off more. Many home improvement projects make a significant difference, from bathroom and kitchen updates to creating functional spaces, and they don’t take too much time or expense.
To help get you started, I’ve compiled a list of the best home improvement projects for a high return on investment. Read on for some top tips for creating compelling space buyers will want to call their own.
Major kitchen remodels
A kitchen renovation tops the list of home improvements to increase your property’s value and ROI. The kitchen is the heart of a home for many people, and buyers are constantly looking for a culinary oasis for creating delicious meals and heartwarming memories. Complete kitchen renovations require a makeshift kitchen, which can be a nightmare, and most buyers don’t want to deal with it. This means they’ll be willing to pay more for your completed upscale kitchen, especially if it has high-end finishes and upgrades throughout.
Minor kitchen renovations
There are more minor ways to make changes that add significant value, even if you don’t have time to remodel your kitchen completely. If your kitchen has good bones already, you can work with the existing space to add luxury upgrades to increase value.
Consider replacing older countertops with granite or quartz, resurfacing your cabinets, adding new hardware, installing a trendy backsplash in complementary designs, adding pendant lighting over the sink, and selecting sleek and shiny stainless steel appliances. While these are all minor renovations, they will add significant value to your home and create a desirable new space that appeals to buyers.
Minor bathroom renovations
A bathroom project is another excellent home improvement project which will receive a high return on investment. Like the kitchen, a bathroom project doesn’t have to be significant, depending on your time and budget. Changes like adding new tile in the showers, updating the sinks and cabinets, and adding a separate tub to create a luxurious and serene spa feeling will significantly increase value and appeal. Other changes you can make include repainting the cabinets, updating the fixtures with modern ones, and installing new flooring. Don’t underestimate a fresh coat of paint on the walls, as it’s one of the easiest ways to add value to your home. Stick to neutral colors to create a refreshing and warm space.
Renovate your entryway
The exterior of your home is just as important as the interior, and it’s the first thing a buyer sees when they pull up to the mailbox. Thus, you can make several improvements to maximize its value, such as creating an appealing focal point with your entryway. The simple task of painting the front door a new color will go a long way in enhancing the appearance of your exterior. Choose a color that compliments the style of your home and its materials, like brick or stone. If you have an older door or want a modern and luxurious look, replace it with something sleek that brightens the area. Any furniture or decor around the porch should be simple and refined.
Landscaping
Landscaping is an excellent way to breathe new life into existing spaces. If you have existing landscaping and flower beds, ensure they are debris-free and that fresh mulch has been added. Use colorful flowers and shrubs to create vibrancy and dimension. These simple landscaping tips are easy to maintain and require little work. Other home exterior improvements that help can be as simple as cleaning or power washing. Most importantly, they can increase your ROI.
Backyard renovations
Buyers appreciate liveable spaces, and that includes outdoor entertainment areas. If you have an existing deck or patio, add greenery to amplify the look and enhance the space’s appeal. Choose ceramic planters in varying colors and designs to create dimension and tie into the ambiance. New furniture and accent lighting help set the mood and create a warm, appealing space.
Add functional space to your home
Adding functional space is one of the best methods of generating value and increasing your ROI. You can often do this with an attic or basement remodel. If you have these spaces and they are unfinished, transform them into liveable areas by creating bedrooms, bathrooms, home offices, or living spaces within them. Every additional space you create within the existing area will generate its own ROI. This means building a bedroom and living space in your basement will generate ROI for each room. Ensure you’re mindful of how much you’re sinking into any project you choose. While each functional space creates more ROI, you don’t want to invest more than you may return.
Ready to get started on your selling journey?
