Home renovations can help enhance your home’s appearance, functionality, and comfort. However, they also cost money – according to Angi, homeowners typically spend between $17,000 and $80,000 to remodel their houses. Therefore, considering the home improvement ROI you can expect from your project before renovating is a good idea.
The ROI is vital if you’re renovating to sell your home – in this case, you’d want a project that can recoup as much as possible. A good ROI also helps to increase the value of your home, which can help you later, for example, if you decide to refinance your mortgage. Therefore, if you’re planning a renovation, below are some top projects that offer the best return on investment.
Roof renovation is one of the most popular home improvement projects. According to a 2022 survey by Houzz, around 21% of homeowners undertook roof renovations in 2021. The survey also revealed a spending increase of 11%, with homeowners spending on average $10,000 on roofing upgrades.
A new roof is one of the top ideas you can consider when doing roof renovations. Hiring a roofing contractor to replace your roof can offer many benefits, starting with increasing your home’s curb appeal. A new roof can also make your home healthier and safer, especially if the old one is worn out or suffers from mold, mildew, poor insulation, and water leaks.
Another benefit of roof replacements is that they offer high home improvement ROI. According to Home Advisor, the average cost of a roof replacement is $7,500. However, the project can recoup up to 85% of the capital used when selling.
In some cases, a new roof can offer an increased home value of up to 109%. In addition, the cost benefits of roof replacement can even be higher when you factor in the reduced repairs, maintenance costs, and utility bills (due to increased energy efficiency).
If you’re looking for green home improvement projects, installing solar is a great idea. Solar allows you to take advantage of the sunshine in your area, providing you with free and clean energy. Even without considering other benefits, that alone is a good enough reason to hire a residential solar company for solar installation in your home.
High home improvement ROI is another top benefit of solar installation. According to a 2021 survey by Zillow, 67% of homebuyers consider energy efficiency when purchasing a house. Therefore, installing solar can help you get a fast offer if you plan to sell your home. Additionally, another Zillow survey found that buyers pay up to 4.1% more for houses with solar – making solar installation one of the best ways to add value to your property.
Besides increased home value, a solar installation can offer more benefits, leading to a higher ROI. For example, according to the Department of Energy, homeowners can claim a federal tax credit of up to 30% on their solar installation costs. Furthermore, solar can save you up to $1,500 annually on utility bills – or even more when you factor in the constantly rising energy prices.
A swimming pool installation is another excellent home improvement project you can make on your home. However, it’s also one of the more expensive renovations you can undertake – according to Angi, homeowners spend between $39,000 and $55,000 to install a pool. Therefore, it’s a good idea to consider the ROI you can get before you hire an inground pool contractor.
The good news is that swimming pools can offer a high return on investment. According to HouseLogic, a swimming pool can increase your home’s value by up to 7% in the suitable market condition. Furthermore, according to a survey by Zillow, about 35% of homebuyers usually consider a bathtub or a pool when looking for a property to purchase. Therefore, installing an underground pool can be helpful if you plan to sell your house.
Besides the high home improvement ROI, a swimming pool offers other benefits that make the installation costs worth it. For example, it provides a beautiful outdoor space for relaxing, having fun with your family, or entertaining guests. A swimming pool is also an excellent way to improve your home’s curb appeal.
Installing a deck is another popular home improvement project amongst homeowners. According to a survey by Principia Consulting, in 2019, 31% of homeowners with a decking renovation project invested in a new deck. Additionally, according to Zillow, a deck is one of the top items that attract a buyer’s interest. Therefore, if you want to improve your outdoor spaces, a deck installation is one of the top projects you can consider.
One of the top benefits of installing a new deck in your home is the high home improvement ROI it can offer. According to HomeGuide, installing a new deck costs between $4,400 and $10,100, and you can recoup up to 70% of the costs when selling your home. In addition, you can enjoy a higher return on investment if you use recycled materials such as plastic lumber.
Several other benefits can make a deck install worthwhile, especially if you’re not planning to sell your home immediately. For example, a deck provides a beautiful outdoor living space that you can use in many ways: relax, spend time with family, or host guests. Building a deck can also significantly improve the appearance of your home’s exterior and, consequently, its curb appeal.
A bathroom remodel is a great way to improve your home’s look, feel, and functionality. These projects are also popular with many homeowners. According to a 2022 report by the National Association of Realtors, bathroom improvements were given a joy score of 9.6 out of 10 – due to the high satisfaction of the homeowners who undertook them.
One of the top reasons you should consider renovating your bathroom is the high home improvement ROI it can offer. According to Angi, remodeling your bathroom will cost you between $6,622 and $16,748, but you can recoup up to 70% of those costs when selling your home. Therefore, it’s an excellent project to increase your home’s value.
Another top reason to consider a bathroom renovation is that you can choose from several projects, depending on your budget and desires. For example, top bathroom remodels ideas include repainting, upgrading the fixtures, redoing the floor, restoring or replacing the shower tiles, refinishing the vanity, etc. These projects can help spruce up your home and impress buyers leading to a higher selling price.
According to a survey conducted by HomeLight, a finished basement can recoup up to 70% of the total costs when selling your home. In addition, the 2022 NAR Remodelling Impact Report promises even higher returns of up to 86%, especially if you convert the basement to a living area. Therefore, finishing your basement is another top project to consider if you want a high home improvement ROI.
When remodeling your basement, there are several ideas you can consider to add value to your home. For example, you can install hardwood floors, tiles or even add a carpet if you already have an existing floor. Also, you can install drywall or apply a fresh coat of paint to the walls.
Other excellent basement finishing ideas include upgrading the light fixtures and building storage solutions (closets, cabinets, etc.). You can also convert your finished basement into a living area, for example, a bedroom, game room, home theatre, etc. All of these can significantly boost the value of your home while also providing you with extra indoor living space.
On top of finishing your basement, you should perform necessary repairs, which can help add value to your home. For example, basement foundation repairs can maintain the structural integrity of your home, thus ensuring its value does not decrease. It can also save you from more expensive repairs, making it worthwhile.
Upgrading your cabinets is another excellent home improvement project you can invest in, especially for your kitchen. New cabinets can completely overhaul the look and functionality of your kitchen, which can be a good selling point that helps increase the sale price of your home. You can also hire a cabinet service to replace your bathroom vanity, another top remodeling idea that can increase the value of your home.
One of the top reasons to consider cabinet replacement is that it’s a budget-friendly project. According to Angi, new kitchen cabinets typically cost between $1,975 and $10,097. They also have a high ROI – according to The Lowdown, replacing your kitchen cabinets can offer you a return on investment of between 80% and 100%.
However, you don’t have to replace your cabinets to enjoy a good home improvement ROI. Instead, you can refinish the cabinet by re-staining or repainting. You can also reface them with new materials, giving them a new look. These cabinet restoration ideas are cost-effective and can offer you just as much return on investment as other kitchen remodels or even higher.
Smart Home Upgrades
If you’re looking for more renovations that can offer you a high home improvement ROI, consider smart home upgrades. According to Realtor, smart upgrades can increase your home’s value by up to 5% – about $15,000 for a house worth $300,000.
The best part about smart home upgrades is that they are inexpensive – Fixr estimates show that a home automation costs between $1,500 and $10,000. Therefore, you could potentially recoup all your investment plus some profit by installing smart features in your home. And as a bonus, these features can improve your home’s energy efficiency, thus saving you money on utility bills.
You can consider several ideas when undertaking smart upgrades for your home. For example, you can hire an electrical company to install smart outlets and light fixtures, which can help improve your home’s convenience and energy efficiency. A smart thermostat is another top upgrade – it can help improve the comfort of your home and lower utility bills by making your HVAC unit more efficient.
Other upgrades include installing a smart door lock, remote view CCTV cameras, smart water sensors, smoke detectors, smart TVs, a home assistant, etc. These features can offer many benefits, such as increasing your home’s security, safety, convenience, and comfort. They are also fantastic selling points that attract homebuyers’ interest if you plan to sell.
Floors are one of the top projects to focus on when renovating your home. Remodeling your floors can offer many benefits, starting with improving your home’s appearance, functionality, and overall atmosphere. Flooring projects can also help you deal with poor insulation, mold growth, water damage, etc.
It also doesn’t hurt that floor remodeling has one of the best home improvement ROIs. According to the 2022 NAR remodeling impact report, you can recover up to 147% of your hardwood floor refinishing costs when selling your home. Other flooring projects can be just as profitable, with a new hardwood floor offering an ROI of up to 118%.
Besides hardwood flooring, tile installation is another floor remodeling project you can invest in. Tiles can increase the aesthetic appeal of your home, which can help attract buyers if you’re planning to sell. Installing tiles can also help improve your home’s value – according to Realtor, tiles have an average ROI of 70%. On top of that, tiles can be more attractive to buyers in some regions, for example, hot and humid areas, where hardwood flooring tends to warp.
If you’re still looking for more renovation projects to invest in, consider giving your kitchen a makeover. According to a study by Houzz, kitchen renovations are one of the most popular home improvement projects, with homeowners spending up to $20,000 on remodels.
One of the top reasons why kitchen renovations are popular is the excellent home improvement ROI they offer. According to Remodeling Magazine, minor to mid-range remodels (up to $21,198) can give an ROI of up to 81.1%. You can still add value to your home with more expensive remodels. However, they won’t recoup most of the costs as they only offer an ROI of up to 59% (significant improvements) and 53.5% (upscale renovations).
Another benefit of investing in a kitchen remodel is that it can improve the functionality of your kitchen, which can increase your home’s livability if you’re not selling immediately. And if you decide to list your house, good kitchen functionality is a huge selling point that can help attract a premium price.
Lastly, kitchen renovations are an excellent idea as you can choose from several projects. For example, you repaint the walls, redo the floors, refinish the countertops, add a kitchen island, etc. You can also improve your kitchen’s appeal and functionality and add value to your home with minor renovations, like replacing the plumbing fixtures and upgrading kitchen appliances.
Investing in suitable home remodeling projects can add value to your home, earning you a better price when selling. These projects can also make your house more appealing to buyers, thus allowing you to sell faster and even at a premium price. The above are some top ideas to consider if you’re searching for renovations with a great home improvement ROI.