As you walk through your home, you might ponder the areas that could use a touch of improvement. A fresh coat of paint here, an updated kitchen there, or perhaps a completely revamped outdoor space. But, amid all these potential home improvement projects, have you considered which ones offer the best return on investment (ROI)? According to Renofi, the national average ROI for home remodeling projects is around 70%. This means that, on average, for every dollar spent on renovations, homeowners can expect to recoup around seventy cents when they sell their homes. But not all home improvements are created equal - some can significantly boost your home's value, while others may not have as much impact.
Average Return on Investment by Home Improvement Project
So, which remodeling projects offer the best ROI? The answer may surprise you. Here's a breakdown of average ROI percentages for various home improvement projects:
|
Project |
Avg. ROI % |
|
Minor Bathroom Remodel |
102% |
|
Landscaping |
100% |
|
Minor Kitchen Remodel |
98.5% |
|
Attic Bedroom Conversion |
93.5% |
|
Major Bathroom Remodel |
93.2% |
|
Major Kitchen Remodel |
91% |
|
Entry Door Replacement |
90.7% |
|
Deck/Patio/Porch Addition |
90.3% |
|
Basement Remodel |
90.1% |
|
Replace Windows |
89.6% |
Rejuvenating Your Kitchen: A Worthwhile Investment
The heart of any home is the kitchen. It's not just a place to cook meals; it's a central gathering spot, a place of warmth and conversation. A minor kitchen remodel, like updating the countertops, cabinets, or appliances, can dramatically change the feel of this space and has an average ROI of 98.5%. Major kitchen remodels, which may involve a complete overhaul of the space, also offer a high ROI at 91%. These remodeling projects are generally well-received by potential buyers, making them excellent investments.
Freshen Up Your Home with a New Coat of Paint
Never underestimate the power of a fresh coat of paint. This relatively simple and inexpensive home improvement project can make a big difference, brightening up spaces and making your home more appealing to potential buyers. Choose neutral colors for broad appeal, and don't forget to touch up the trim for a complete, polished look.
Hardwood Floors: Refinish for a New Lease on Life
Hardwood floors have a timeless appeal. If your home boasts this feature, consider giving them a fresh look with a refinish. Refinished hardwood floors can breathe new life into a room, making it feel warmer and more inviting, all while increasing your home's value.
Brighten Spaces with New Mirrors
Adding new mirrors, especially in bathrooms and small spaces, can make rooms appear larger and brighter. It's a simple touch that can have a big impact, improving both aesthetics and function.
The Impact of New Hardware
Small details like doorknobs, cabinet handles, and light fixtures can age a home. Upgrading this hardware is a straightforward and cost-effective home improvement project that can modernize your home and increase its appeal.
Exterior Improvements: First Impressions Matter
The exterior of your home is the first thing potential buyers see. Investing in projects that improve curb appeal can significantly boost your home's value. Think about power washing the exterior, painting the front door, or replacing the garage doors. Even minor touches, like a neat driveway or well-maintained garden, can make a positive first impression, leading to a higher resale value.
Enhancing Your Home's Greenery: The Value of Landscaping
A well-landscaped front yard is a feast for the eyes. Planting trees, bushes, and flowers not only enhances your home's curb appeal, but it also creates a welcoming environment. Plus, strategically placed trees can even help reduce utility costs by providing shade in the summer. With a 100% average ROI, garden landscaping is a worthwhile investment that can transform your home's exterior and make it more appealing to potential buyers.
Unleashing Your Home's Potential: Creating Functional Spaces
Maximizing the functionality of your existing space is another effective way to add value to your home. Think about the areas in your home that are currently underutilized. Can an empty bedroom be transformed into a home office? Could the family room double as a home theater? By creating functional spaces, you not only enhance your own living experience but also make your home more attractive to potential buyers.
Finishing the Attic and Basement
A dark and dingy basement or an unused attic can be turned into a valuable living space with a bit of creativity and work. Whether you choose to transform these spaces into an extra bedroom, a playroom, or a home gym, finishing your attic and basement can significantly increase your home's usable living space and its overall value. With an average ROI of 93.5% for an attic bedroom conversion and 90.1% for a basement remodel, these projects are definitely worth considering.
A Spruced-Up Bathroom: A Boost for Your Home's Value
Bathroom renovations, both minor and major, rank high when it comes to best ROI home improvements. Updating fixtures, adding new tiles, or even just giving the space a good deep clean can significantly enhance the look and feel of your bathroom. Remember, most buyers are looking for a home that's move-in ready, and a clean, modern bathroom can go a long way in convincing them that your home is just what they're looking for.
Factors That Influence Resale Value and ROI
- The Importance of Location: The neighborhood and region your home is in can greatly influence its resale value. Certain home improvements may yield higher ROIs in specific locales due to local trends and buyer preferences.
- The Real Estate Market: The state of the real estate market, both nationally and locally, can affect the ROI of home improvement projects. When home prices are high, improvements tend to yield a higher ROI.
- The Timing Factor: The timeframe for selling your home can also impact the ROI of home improvement projects. If you plan to sell in the near future, you might want to focus on quick, high-impact projects like painting or landscaping. If you plan to stay in your home for a while, larger projects like a kitchen or bathroom remodel might be more beneficial.
- The Unexpected Hiccups: Home renovations can come with unexpected expenses and issues, from discovering electrical problems to going over budget on materials. These unexpected hiccups can affect the overall cost of the project and ultimately, its ROI.
About the McCooey-Olivieri Team
The McCooey-Olivieri Team is a group of real estate professionals driven by a commitment to excellence and meticulous attention to detail. They expanded their team in 2020, and with over 50 years of combined experience, these 8 dedicated individuals offer unrivaled expertise.
Their cumulative efforts have resulted in an impressive total sales volume exceeding $200 million, with a broad clientele stretching from Manhattan to The Hamptons. This accomplishment, alongside their place in the top 1.49% of Medium Teams nationwide according to Real Trends 2021 Rankings, is a testament to their proven success.
Catering to the diverse needs of both seasoned and novice home buyers and sellers, the McCooey-Olivieri Team is dedicated to educating clients about the intricacies of the real estate market, ensuring transactions proceed as smoothly and stress-free as possible.
With a strong emphasis on integrity and professionalism, the team blends traditional real estate wisdom with cutting-edge technology and innovative marketing strategies. Their approach is designed to stay ahead of the curve, making them an invaluable asset to clients.
If you're embarking on a journey to buy or sell a home, or if you have any questions about the ever-changing New York real estate market, the McCooey-Olivieri Team is ready to guide you every step of the way.
