We've touched on why home improvements can help build equity in your home, but what types of renovation projects make the best return on investment (ROI)?
This can depend on several factors, including the location of your home, current market conditions, the quality of the work, and the specific project itself. That being said, some home renovation projects tend to offer better ROI on average compared to others. Here are some home renovation projects we've seen bring the best return.
Kitchen Remodel: A kitchen remodel can be a significant investment, but it often yields a high ROI. Focus on updating countertops, cabinets, appliances, and fixtures. An updated kitchen can make your home more appealing to buyers. If a full remodel isn't in the budget, consider making smaller updates like re-grouting tiles, replacing faucets, or adding a fresh coat of paint.
Bathroom Remodel: Like the kitchen, bathroom remodels can also provide a good return. Upgrading fixtures, adding a new vanity, and improving the overall aesthetics can increase your home's value. However if a remodel is not in the budget, re-grouting tiles or adding a fresh coat of paint can help here as well.
Curb Appeal Enhancements: First impressions matter. Projects like landscaping, exterior painting, and replacing the front door can enhance your home's curb appeal and make it more attractive to potential buyers. This is also important when preparing for home photography when you are ready to list it.
Attic Conversion: If you have an underutilized attic space, converting it into a bedroom, office, or living area can add usable square footage to your home and boost its value.
Basement Finishing: Similar to attic conversions, finishing a basement can provide extra living space. Make sure it's waterproofed and properly insulated for the best ROI.
Energy-Efficient Improvements: Adding energy-efficient features like new windows, insulation, or a smart thermostat can reduce utility bills and make your home more appealing to eco-conscious buyers. Improving insulation in the attic and walls can enhance energy efficiency and make your home more comfortable, which can also be attractive to buyers.
Deck or Patio Repairs/Additions: Outdoor living spaces are in demand. Adding a deck or patio with comfortable seating and outdoor amenities can increase your home's appeal. If you already have a deck or patio be sure to repair any broken and dangerous wood planks, loose nails/screws, and deck tiles. A fresh coat of stain can also make the outdoor living space more appealing.
Garage Door Replacement: Replacing an old garage door with a modern, energy-efficient one can provide a high ROI. It improves aesthetics and can enhance security.
Remember that while these projects generally offer good ROI, there are no guarantees. The quality of work and market conditions play a significant role, as does the current condition of your home. Additionally, local real estate trends should inform your decisions so it is wise to consult with your real estate agent or an appraiser in your area to assess the potential ROI of specific renovations before you begin investing money into these projects.
If you have questions or need a recommendation, Willow Bend Title has 30 + years of real estate experience in the DFW Texas area and our team is always happy to assist you with finding a business that can help you successful complete your renovations so you can sell your home and meet us at our closing table.