Many remodel and renovate their home to create a more comfortable, inviting, or impressive living space. Not all renovations offer the same amount of potential appreciation, though. Whether you want to upgrade your property to improve your equity for borrowing or looking to sell, certain renovations can make your home more appealing and valuable to buyers. This article explores some of the top renovations you can make to boost your property’s value.
1. Kitchen
The kitchen is one of the most prized rooms of the home, so the right upgrades and enhancements could dramatically improve its property value. Surprisingly, major kitchen remodels tend to have a lower return on investment, given the significant costs. Mild to moderate kitchen renovations may offer healthy appreciation but help you save money at the same time. So, you could consider prioritizing cosmetic upgrades. Some ideas include:
- New cabinets and drawers
- New lighting
- New flooring
- A new sink
- Upgraded appliances (which also offer functional benefits)
You can do a more significant remodel, but be aware of the costs and the disruptions to daily life. You may need more money or to take out a personal loan to cover the costs.
2. Bathroom
Bathrooms are a major attraction for buyers besides the kitchen. Modernizing and beautifying the bathroom can boost property value, but the best part is that you may not suffer significant disruption to daily life if you have multiple bathrooms. Some renovation ideas for your bathroom include:
- Replacing countertops with better materials
- Adding dual vanities
- Installing a walk-in, glass-enclosure shower
You could even add a new bathroom if you have the space and budget. This will cost more, but an additional bathroom can be a huge draw for buyers — meaning more potential appreciation.
3. Outdoor spaces
An outdoor living space can be an eye-catcher, especially in warmer climates. Decks, in particular, can be quite attractive to buyers given their elevation and more closed-off nature. They also work better for uneven or sloped terrain. Wood decks can offer higher ROI since they’re cheaper but can rot and warp over time. Decks made of a composite material cost more and can offer a lower ROI, but stand up better to the elements.
A patio could also be a great option for flatter terrain, and since they’re made of things like concrete or stone, they hold up well to the weather. They’re also more structurally sound since they’re directly in the ground.
The last big renovation you could add is an outdoor kitchen. This pairs well with a patio or pool, allowing guests to remain outside as they enjoy the amenities and dine. It also adds a touch of luxury to your home. A few more minor outdoor renovations include:
- Pergola
- Built-in seating
- Additional lighting
- New outdoor furniture
4. Curb appeal enhancements
Your home’s first impression matters. If your home looks beautiful at a glance by someone driving down the street, it can be worth more. So, sprucing up your curb appeal can boost your property value. The good news is that curb appeal enhancements can offer a high potential ROI, given their simplicity. Here are some examples:
- New doors and windows
- Repaving driveways
- Landscaping (such as trimming hedges and planting flowers)
- A new mailbox
- Extra lighting along walkways
As you can see, these are fairly small upgrades. However, put together, they can add a lot of beauty to your home’s exterior and make it the prize of the neighborhood.
5. Energy-efficient upgrades
Energy-efficient upgrades offer a double benefit — improving your home’s value and cutting your energy bills. These savings can help recoup some of the costs of installing the upgrades, boosting ROI. Here are some potential energy-efficient projects to boost your home value and save money:
- Solar panels (more expensive but good for environmentally conscious buyers)
- Energy-efficient HVAC systems
- Smart thermostats
- Energy-efficient windows
- Ceiling fans (to circulate air and reduce A/C reliance)
One other benefit is that some energy-efficient renovations may qualify for certain tax credits. You could consider speaking with an accountant to explore potential tax credits for these tax benefits.
The bottom line
The right renovations can create a more functional and comfortable space while improving your home’s value. Kitchen, bathroom, and outdoor space renovations (or adding bathrooms or outdoor spaces) are some of the most attractive renovations. However, curb appeal enhancements and energy-efficient upgrades can provide high returns due to their lower costs and potential for long-term cost savings. Whether you want more equity, you’re looking to sell, or you just want a comfortable home that offers returns on your investment, consider some of these renovations.
