Are you looking for a specific renovation project that will improve the resale value of your home? Your return on investment is important but not all home projects add much value. Here are some of the best and worst projects if you want the most bang for your buck:
B E S T:
Kitchen remodels tend to involve a lot of usability upgrades, which buyers love. This remains one of the best projects to increase resale value, and will probably always have a top spot. A mid-range renovation can recoup an average of 80 percent of the cost through increased value.
New Fireplace
Installing a new fireplace can quickly increase resale value. And if it’s an upgrade from an older, less efficient wood stove to a gas or electric stove, bonus points. Even renovations for appearance and safety can make a big difference in climates where fireplaces see a lot of use.
These days, a new front door is seeing a massive 90 percent resale value. The reason? A new door is immediately apparent, adding to curb appeal while also allowing you to improve security and smart device features.
Finishing an area of the house, especially an attic or basement, into another bedroom can greatly increase the resale value of a house. This is because it adds more square footage, creates a new usable room and opens the house up to buyers with larger families.
Attic insulation with fiberglass is seeing over 100 percent cost recouped. And this means you are technically gaining resale value at no expense when adding important attic insulation. Make sure all gaps are covered and cracks are sealed against pests.
New Garage Door
Front-facing garage doors can impact curb appeal more than most home components, leading to an return of investment of around 77 percent. Upgrade to a better garage door with windows and smart control features to really impress potential buyers.
W O R S T:
A generator may be useful as a safeguard but it doesn’t add a lot of everyday resale value to homes. And this is what buyers care the most about. Exceptions occur in rural or off-grid homes where generators see a lot of use in bad weather.
Backyard Patio
The patio is a great DIY project, but don’t expect to recover more than half the cost as added resale value to your home. These patios aren’t especially visible and are quite common. However, a full upgrade will be more impressive than a just a layer of stone.
When considering a bathroom addition, it’s important to ask, “Does the house need a new bathroom, based on the number of bedrooms?” A bathroom involves expensive renovation. And it only adds resale value if you really did need a half-bath in the hallway. However, bathroom remodels see better returns.
An expanded master bedroom can be an expensive resale value project. And, today’s buyers don’t really care about making master bedrooms larger. Further, as a general rule, only plan a master bedroom addition if you want it and you’re planning on staying in the house for years to come.
A full sunroom needs careful design, proper insulation and a lot of maintenance. And potential buyers may end up asking, “Why not something else?” Think about a gazebo or screened porch to increase resale value instead.
Home offices are great if you regularly use them and a renovation may be important for your work low. But don’t expect everyone to feel the same way. Additionally, these renovations don’t contribute much to market resale value.
While a garage door has a big impact on home appearance, a bigger or more elaborate garage is harder to notice. And it has limited uses compared to other indoor renovations, which add resale value.