Doing home improvements can be a rewarding experience, but also a responsibility – after all, you don’t want to throw money and time at a home renovation project only for it not to add any value to your property. Some renovations are better than others when it comes to return on investment (ROI). Here’s our list of the best home improvements that improve the quality of your home as well as offering the highest ROI.
1. Kitchen Remodel
Why it Pays Off:
You have probably heard that the kitchen is the heart of the home. So if you have an old kitchen and you want to make your home more attractive to prospective buyers, your best bet is to invest in a new one (or at least a substantially updated version).
ROI Potential:
You can expect return on your investment of about 75-80% for a minor kitchen remodel, like replacing countertops, cabinets and appliances, not a full gut job.
What to Focus On:
- Countertops: Consider upgrading to granite or quartz.
- Cabinets: Reface or repaint existing cabinets rather than replacing them.
- Appliances: Energy-efficient models are not only marketable but also can save you hundreds in utilities.
2. Bathroom Renovation
Why it Pays Off:
Other than the kitchen, bathrooms are the most inspected rooms in the home. Updated bathrooms can make a lot of difference in the eyes of buyers.
ROI Potential:
A midrange bathroom remodel typically returns 70-75% of the investment.
What to Focus On:
- Fixtures: Update old faucets, showerheads, and lighting.
- Tile and Flooring: Fresh, modern tilework is a huge plus.
- Vanity: A new vanity with a granite or quartz countertop can transform the space.
3. Outdoor Improvements
Why it Pays Off:
The first impression a potential buyer gets is based on what they see on the outside – and you can make that difference with improved curb appeal.
ROI Potential:
Adding a deck or patio, new exterior landscaping or exterior painting can net an ROI of 70-75 per cent.
What to Focus On:
- Landscaping: Simple upgrades to your landscaping can make your home more inviting.
- Deck or Patio: Adds functional living space outdoors.
- Exterior Paint: A fresh coat of paint can give your home a new look.
4. Energy-Efficient Windows
Why it Pays Off:
Many people who are looking to buy a home worry about energy efficiency. If you replace your old windows with energy efficient windows, your house will not only look better, but you will also save on utility bills.
ROI Potential:
New windows can provide an ROI of around 70-75%.
What to Focus On:
- Materials: Choose windows with good insulation properties.
- Style: Ensure the style matches the aesthetic of the rest of the home.
5. Attic Insulation
Why it Pays Off:
This simple upgrade is often missed, but can lead to significant energy savings through the lowering of indoor temperatures in summer and raising them during winter.
ROI Potential:
The largest ROI upgrade is insulation in the Attic, which gives an average of 100% ROI.
What to Focus On:
- Material: Both fiberglass and spray foam are effective choices.
- Coverage: Ensure complete coverage for maximum efficiency.
Conclusion
You should focus your renovation efforts on upgrades that will enhance your living experience while also paying a high return on investment. This includes kitchen and bathroom overhauls as well as outdoor improvements. Energy-efficient upgrades, such as new windows and insulation, will also keep your bills down and make your home more appealing to eco-conscious buyers. Thoughtful upgrades in the right areas can help you maximize your home’s value on the market, as well as making your home more comfortable and attractive for you.
