As a local REALTOR, I’m constantly approached with questions about the best renovations for my clients. They often seek my guidance on decisions like whether to focus on sprucing up their bathroom or kitchen for a higher return on their money or if investing in finishing their basement would be more beneficial when it’s time to sell.
So I compiled a list of common renovations, and the average return on investment each may have.
What follows are “best estimates” for the most typically consistent remodeling projects I have seen across the country. Unless otherwise noted, the maximum time between remodeling and resale must be five years; otherwise, the “value-added” figures are void.
Kitchen Remodel:
One of the most common questions revolves around kitchen remodeling. Kitchen remodels can range in cost from $15,000 to $30,000 or even higher, depending on the scope of the project. This average cost typically has various aspects such as installing new cabinets and countertops, rewiring electrical systems, making structural changes (like removing a separating wall, making the space more open-concept), relocating plumbing, and even incorporating custom cabinetry and top-of-the-line appliances.
Now, let’s talk about the return on investment (ROI) for kitchen remodels. On average, homeowners can expect an impressive ROI ranging from 80% to 110%. This means that the money invested in a kitchen remodel is likely to yield substantial returns when it comes time to sell the property. A well-executed and aesthetically pleasing kitchen renovation can significantly increase the overall value and desirability of a home, enticing potential buyers and maximizing the potential selling price.
Bathroom Remodel
Another area of interest for homeowners contemplating renovations is the bathroom. A bathroom remodel typically falls within the price range of $7,500 to $10,000 or potentially higher, depending on the extent of the project and the desired upgrades. This cost can include elements such as new fixtures, flooring, cabinetry, tiling, lighting, and even plumbing adjustments.
On average, homeowners can expect a remarkable return on their money ranging from 80% to 115%. This means that investing in a bathroom remodel can not only increase the functionality and aesthetics of the space but also provide a substantial return when it comes to selling the property. A beautifully renovated bathroom can captivate potential buyers, leaving a lasting impression and potentially increasing the perceived value of the home. With thoughtful design choices and quality craftsmanship, a bathroom remodel has the potential to make a significant impact on both daily living and the future resale value of the property.
Room Additions
And for those of us yearning for more space, a room addition might be the perfect solution. Room additions can cost anywhere from $30,000 to $50,000 or more, depending on the size and complexity of the project. While the ROI for room additions ranges from 50% to 110%, it’s important to remember that a well-executed addition can provide invaluable extra space for a home office, playroom, or the additional bedroom. Plus, it can enhance the overall market value of your home, attracting potential buyers who crave more room to grow and thrive.
What About A Finished Basement?
Finishing a basement can provide significant value. On average, homeowners can expect an ROI ranging from 50% to 75% or higher, depending on the local housing market and the quality of the finished space. By transforming an underutilized or unfinished area into a fully functional living space, you’re essentially expanding the square footage and adding versatility to your home.
A finished basement can offer a variety of benefits for potential buyers, such as creating additional living areas, entertainment spaces, home offices, or even a guest suite. It provides valuable flexibility and enhances the overall livability of the home. Moreover, a well-designed and inviting finished basement can be a strong selling point, attracting buyers who appreciate the added space and the potential for customization to fit their specific needs.
Converting a Garage Space or Attic Space
Converting a garage space or attic into a livable space can be a creative and valuable home renovation project. While the specific ROI can vary depending on factors such as location, market conditions, and the quality of the conversion, it can generally offer a good return on investment.
Garage conversions typically involve transforming an existing garage into a functional living space, such as a bedroom, home office, or additional living area. The cost of a garage conversion can range from $10,000 to $30,000 or more, depending on the extent of the project, including insulation, drywall, flooring, electrical work, HVAC, and any necessary structural modifications.
Attic conversions involve turning an underutilized attic space into a livable area, such as a bedroom, home gym, or studio. The cost of an attic conversion varies based on factors like size, accessibility, and desired features of the space. It can range from $20,000 to $50,000 or higher, taking into account insulation, flooring, stair installation, electrical work, plumbing if needed, and ensuring compliance with building codes.
The exact ROI will depend on factors like the quality of the conversion, the demand for additional living space in the local market, and how well the converted area blends with the rest of the home. However, well-executed garage or attic conversions generally have the potential to provide a solid return on investment and can increase the overall value of your property.
Adding A Deck
Deck additions can be a fantastic way to enhance your outdoor living space, creating a welcoming and versatile area for relaxation and entertainment.
Deck additions typically range in cost from $5,000 to $15,000 or higher, depending on factors such as the size, materials chosen (such as wood or composite), additional features like built-in seating or lighting, and any necessary permits or construction work. This investment allows homeowners to expand their living space outdoors, providing an inviting area for relaxation, hosting gatherings, or enjoying nature.
In terms of ROI, deck additions can yield favorable returns. On average, homeowners can expect an ROI ranging from 75% to 85% or potentially higher, depending on various factors. A beautifully designed and functional deck can enhance the overall appeal of your home, creating an attractive outdoor living space that potential buyers desire.
Moreover, decks have become highly sought-after features for homebuyers, especially in areas with favorable climates or scenic views. They provide a seamless transition between indoor and outdoor living, adding value to the overall lifestyle that a property offers. A well-maintained deck can serve as a selling point, enticing potential buyers who envision themselves enjoying the outdoor space and envisioning a future of barbecues, gatherings, and peaceful evenings under the stars.
Painting the Exterior of the Home
Painting the exterior of your home can be a transformative and cost-effective way to enhance its curb appeal and increase its market value. The cost of an exterior paint job can vary depending on factors such as the size of the home, the complexity of the project, and the quality of paint used. However, on average, homeowners can expect to invest between $3,000 to $6,000 or more for a professional exterior painting service.
On average, painting the exterior of your home can provide an ROI ranging from 50% to 100% or even higher. A visually appealing and well-maintained exterior creates a positive first impression, attracting potential buyers and setting your home apart from others on the market.
Painting the exterior offers additional benefits beyond just financial return. It can help protect your home from the elements, improve its overall condition, and extend its lifespan. Furthermore, it gives buyers a sense of confidence in the property, knowing that it has been well cared for and visually appealing.
When choosing the paint colors, it’s important to consider current trends, the style of your home, and the preferences of potential buyers in your area. A professional painter can offer guidance on color selection to ensure that it appeals to a broad range of tastes and maximizes the visual impact.
By investing in a high-quality exterior paint job and creating an inviting and well-maintained facade, you increase the likelihood of attracting potential buyers, commanding a higher selling price, and enjoying a satisfying return on your investment.
In Ground Swimming Pool
When it comes to adding an in-ground swimming pool, the return on investment (ROI) can vary depending on several factors. As a REALTOR, I understand that pools can be a desirable feature for some homebuyers, but they may not always provide a significant financial return.
Adding an in-ground swimming pool can be a substantial investment, with costs ranging from $30,000 to $70,000 or even higher, depending on factors such as the size, design, materials used, and additional features like landscaping or pool accessories. It’s important to consider both the initial investment and the ongoing maintenance costs associated with pool ownership.
The value added by a pool will depend on various factors, including the location, climate, and local market trends. In areas with warm climates or where pools are highly sought after, a well-designed and properly maintained pool can potentially contribute to a higher selling price and attract interested buyers. In such cases, the ROI may be more favorable.
However, it’s essential to note that not all homebuyers prioritize having a pool. Some may have concerns about maintenance, safety issues, or additional costs associated with pool upkeep. In regions with cooler climates or where pools are less common, the ROI on a pool may be lower, and potential buyers may not be willing to pay a premium for it.
When considering adding a pool, it’s crucial to assess your personal enjoyment and long-term plans for the property. If you plan to stay in the home for an extended period and will fully utilize the pool, the non-financial benefits may outweigh the potential ROI. However, if you’re solely adding a pool with the intention of increasing the property’s value for resale, it’s important to carefully evaluate the local market demand and consult with a real estate professional to determine if it aligns with buyer preferences in your area.
Ultimately, while a well-designed and maintained pool can enhance the appeal of a property and attract certain buyers, the ROI on a pool may not always be as high as other home improvements. It’s crucial to weigh the costs, maintenance requirements, and potential buyer preferences in your specific market before making a decision.
Remember, as with any home improvement project, it’s important to consider factors such as quality craftsmanship, regular maintenance, and ensuring design and materials harmonize with the overall style and aesthetics of your home.
