Top Renovations that can Increase Your Home’s Market Value

Investing in home renovations is a smart way to increase your property’s market value and appeal to potential buyers. Strategic upgrades can yield a high return on investment (ROI) and make your home more competitive in the real estate market.

Here’s a table summarizing the ROI for each renovation project, listed from the highest to the lowest ROI:

Renovation Project ROI Details
Landscaping and Curb Appeal Up to 150% Includes lawn care, pathways, driveways, exterior paint, front door, and outdoor lighting
Kitchen Remodeling ~81% Cabinet refacing, new countertops, upgraded appliances, backsplash, lighting
Energy-Efficient Upgrades ~75% Improved insulation, energy-efficient windows, solar panels, Energy Star appliances, HVAC systems
Bathroom Renovation ~70% New fixtures, tile and flooring, vanity upgrades, shower and tub replacements, eco-friendly features
Basement Remodeling ~70% Converting basements into living spaces, including insulation, waterproofing, lighting, and flooring
Attic Conversions Up to 60% Converting attics into bedrooms or playrooms, including insulation and lighting
Outdoor Living Spaces ~55% Deck or patio, outdoor kitchen, fire pit, seating areas, landscaping features

renovations Vs ROI

1. Landscaping and Curb Appeal

Why It Matters: First impressions matter. A well-maintained exterior can attract more potential buyers and increase perceived value.

Key Upgrades:

  • Lawn Care: Maintain a healthy, green lawn and trim hedges and trees.
  • Pathways and Driveways: Repair or replace cracked pathways and driveways.
  • Exterior Paint: Freshen up the exterior with a new coat of paint.
  • Front Door: Replace the front door with a modern, secure one.
  • Lighting: Add outdoor lighting to enhance safety and curb appeal.

ROI: Investing in curb appeal can offer an ROI of up to 150% .

2. Kitchen Remodeling

Why It Matters: The kitchen is often considered the heart of the home and a major selling point for buyers. Modern, functional kitchens can significantly boost a home’s appeal and value.

Key Upgrades:

  • Cabinet Refacing or Replacement: Update old cabinets with a fresh finish or replace them entirely.
  • New Countertops: Install high-quality materials like granite, quartz, or marble.
  • Upgraded Appliances: Invest in energy-efficient, stainless steel appliances.
  • Backsplash: Add a stylish and easy-to-clean backsplash.
  • Lighting: Improve lighting with under-cabinet lights and stylish fixtures.

ROI: Minor kitchen remodels can yield an ROI of around 81% .

3. Energy-Efficient Upgrades

Why It Matters: Energy-efficient homes are attractive due to lower utility costs and environmental benefits. Buyers are often willing to pay more for homes with energy-saving features.

Key Upgrades:

  • Insulation: Improve insulation in the attic, walls, and floors.
  • Windows: Install energy-efficient windows to reduce heating and cooling costs.
  • Solar Panels: Consider adding solar panels for sustainable energy.
  • Energy-Efficient Appliances: Upgrade to appliances with Energy Star ratings.
  • HVAC System: Replace old HVAC systems with modern, efficient units.

ROI: Energy-efficient upgrades can have an ROI of around 75% .

4. Bathroom Renovation

Why It Matters: Updated bathrooms are highly attractive to buyers. Modern fixtures, additional storage, and aesthetic improvements can make a big difference.

Key Upgrades:

  • New Fixtures: Install modern faucets, showerheads, and lighting.
  • Tile and Flooring: Update old tiles and replace flooring with durable materials like porcelain or ceramic tiles.
  • Vanity Upgrades: Replace old vanities with new ones that offer more storage and style.
  • Shower and Tub: Consider replacing old bathtubs with walk-in showers or upgrading the tub.
  • Eco-Friendly Features: Add water-saving fixtures and low-flow toilets.

ROI: Bathroom remodels generally offer an ROI of about 70% .

5. Basement and Attic Conversions

Why It Matters: Converting underutilized spaces like basements and attics into functional areas can add significant value by increasing the liveable square footage of your home.

Key Upgrades:

  • Basement: Finish the basement to create additional living space, such as a family room, home office, or guest bedroom.
  • Attic: Convert the attic into a bedroom or playroom.
  • Insulation and Waterproofing: Ensure the area is properly insulated and waterproofed.
  • Lighting and Flooring: Add adequate lighting and durable flooring.

ROI: Basement remodels can offer an ROI of around 70%, while attic conversions can provide an ROI of up to 60%​.

6. Outdoor Living Spaces

Why It Matters: Outdoor living spaces are increasingly popular, offering additional areas for relaxation and entertainment. They enhance the functionality and appeal of a home.

Key Upgrades:

  • Deck or Patio: Build or upgrade a deck or patio with durable materials.
  • Outdoor Kitchen: Add an outdoor kitchen area with a grill, sink, and counter space.
  • Fire Pit: Install a fire pit or fireplace for cozy gatherings.
  • Seating Areas: Create comfortable seating areas with weather-resistant furniture.
  • Landscaping Features: Add features like a pergola, gazebo, or garden.

ROI: Well-designed outdoor spaces can offer an ROI of around 55%​.

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  1. National Association of Realtors®
  2. Energy Star
  3. Fixr

By following these guidelines, you can strategically invest in renovations that not only enhance your living experience but also significantly boost your home’s market value.