Introduction
Home improvements can be a great way to increase the value of your home, but not all projects are created equal. Some home renovations have a much higher Return on Investment (ROI) than others.
In this article, we will look at some of the home improvement projects that can have the best ROI. We’ll also explain why they are worth considering if you are looking to boost the value of your home. From kitchen and bathroom renovations to adding a deck or patio, we will explore the projects that tend to give homeowners the most bang for their buck.
Additionally, we will discuss the importance of considering the project’s cost, the work’s quality, and the materials used to evaluate a renovation’s potential ROI.
By the end of this article, you will better understand which home improvements could have the biggest impact on home value.
Kitchen Renovation
Kitchen renovation can be a good home improvement idea for several reasons. The most significant reason is that it could significantly increase the value of your home.
A well-designed and functional kitchen is often considered one of the most important areas in a house. A well-designed kitchen can also be a major selling point for potential buyers. A kitchen renovation could also increase the overall functionality of the space, making it more enjoyable for homeowners to use it.
By replacing your old appliances with energy-star ones, your kitchen renovation can also improve your home’s energy efficiency. This can lead to lower energy bills and can be a great way to save money in the long run.
Additionally, a kitchen renovation also could have a high ROI, on average between 50-80%, which means that for every dollar spent on a kitchen remodel, the homeowner can expect to get back 50-80 cents of that cost in the form of increased home value.
However, it is essential to note that the ROI for a kitchen renovation can vary. A minor renovation can give an average ROI of 80%, while a major remodel can average around 60%.
The materials used in a kitchen remodel can significantly affect the Return on Investment (ROI). Here are a few materials that are known to have a good ROI when used in a kitchen remodel:
Quartz countertops
Quartz is a durable and low-maintenance material that is becoming increasingly popular as an alternative to granite. It is also more affordable than natural stone options, making it great for homeowners looking to get the most bang for their buck.
Laminate flooring
Laminate flooring is a cost-effective and durable home improvement option that can mimic the look of expensive materials like hardwood. It’s also easy to clean and maintain, making it an excellent choice for high-traffic kitchens.
You can also upgrade laminate flooring with engineered wood flooring. This material is also durable but less expensive than solid wood.
Stainless steel appliances
Stainless steel appliances are timeless and modern, and they can significantly increase the overall aesthetic of a kitchen. They are also durable and easy to clean, making them a great option for kitchen renovation. Try to optimize for Energy-Star appliances because of the energy savings they offer in the long run.
Energy-efficient lighting
Energy-efficient lighting can significantly improve the overall functionality of a kitchen, and it can also help to lower energy bills.
Neutral paint
A fresh coat of paint can greatly improve a kitchen’s overall look and feel. Neutral colors are timeless, easy to match with other design elements, and can make the space look bigger.
If you want to learn some tips to help you increase your home value, read our article:
11 Tips to Increase Your Home Value
Bathroom Renovation
Renovating your bathroom can be a great way to improve your home’s overall look and feel, increase its value, and make it more comfortable for you and your family.
Your bathroom renovation can come with a great ROI. The average Return on Investment (ROI) for a bathroom remodel in the United States is typically between 70-80%.
It’s also important to note that the ROI for a bathroom remodel can vary depending on a number of factors. Factors, such as location, the previous condition of your bathroom, quality of work, and the price tier of the materials used.
A well-designed and functional bathroom is an essential part of any home. A bathroom renovation can also increase the overall functionality of the space, making it more functional and comfortable. It can also make it more accessible for older or disabled people.
Another benefit of renovating your bathroom is the potential for energy savings. Here are some bathroom updates that can increase energy efficiency:
- Updating to water-saving showerheads.
- Installing energy-efficient lighting.
- Replacing insulation.
- Installing energy-efficient ventilation.
Updating your bathroom with energy-efficient features can also help reduce your carbon footprint and contribute to a more sustainable future.
If you want to learn more about how energy efficiency affects your home value, read our article:
How Home Energy Efficiency Affects Your Home Value
Bathroom Renovation Materials
The materials used in a bathroom renovation can affect the Return on Investment (ROI). Some materials have a higher ROI than others. Here are a few materials that are known to have a good ROI:
Ceramic or porcelain tile
Ceramic and porcelain tiles are cost-effective and durable options that can significantly improve the overall aesthetic of a bathroom. They are also easy to clean and maintain, making them a great choice for high-traffic bathrooms.
High-efficiency toilet
A high-efficiency toilet is another great home improvement idea and can save water and help to lower water bills.
Walk-in shower
Walk-in showers have several advantages over traditional shower enclosures. They are generally considered to be more accessible, as they do not have a lip or threshold that can be difficult to step over. They also tend to be more spacious, allowing for greater freedom of movement.
Additionally, walk-in showers often have a more modern and open design, making the bathroom feel larger and more luxurious. They are also easier to clean and maintain, as there are fewer crevices for dirt and grime to accumulate.
Frameless glass shower doors
Frameless glass shower doors give a more modern and elegant look and are easy to clean.
Freestanding bathtub
If your bathroom size allows it, this is another great feature to add to your walk-in shower.
Basement Renovation
Finishing a basement can be a good home improvement idea for many reasons. It can significantly increase the living space in your house. A finished basement can provide additional bedrooms, a home office, a playroom, or a recreational area, which can be especially useful for growing families.
It can also improve your home’s energy efficiency by adding insulation and proper ventilation and ensuring that any moisture issues are addressed. This can lead to lower energy bills and can be a great way to save money in the long run.
Finishing a basement also has a good ROI, on average between 65-75%. Some basement renovation ideas that could have a high Return on Investment (ROI) include:
- Adding a bedroom and/or a bathroom
- Creating a home office or a home gym
- Building a wet bar or a kitchenette
- Installing a fireplace or a wood stove
- Creating a recreational or a media room
- Adding a laundry room
- Finishing the walls, ceiling, and floor
- Installing proper lighting and ventilation
- Creating a walk-out or an egress window
- Upgrading the insulation
If you want to know if you should renovate your home before selling it, read our article:
Should You Renovate Your Home Before Selling It?
Adding a Deck or Patio
Adding a deck or patio can be a good investment for a number of reasons. It can greatly increase the living space in your home and provide an additional area for entertaining, relaxing, and enjoying the outdoors.
Additionally, it could increase the value of your home. A well-designed and functional deck or patio can be a great way to boost the overall value of your property.
Adding a deck or patio can also improve the overall aesthetic of your home. It will also provide an attractive and functional outdoor space. A deck or patio can be designed to complement your home’s existing architecture and landscaping, making it look more inviting and cohesive.
Lastly, adding a deck or patio also has a high ROI, on average between 75-80%. The Return on Investment (ROI) for a deck or patio renovation can vary depending on a number of factors, such as project cost, location, and market conditions.
Generally, the ROI for a deck or patio renovation in the United States tends to be higher in states with warmer climates. States such as California, Florida, Texas, and Arizona tend to have high ROI for deck or patio renovations. This is because these states have a higher demand for outdoor living spaces, and homeowners in these states are more likely to use their decks or patios frequently.
Landscaping
Have you ever asked yourself what home improvement has the biggest impact on home value? Landscaping should be one of the first things that should come to your mind. Landscaping can be a good home improvement investment because it can improve your home’s overall curb appeal and aesthetic. This will make it more attractive and inviting.
A well-designed and well-maintained landscape can be a major selling point for potential buyers, and it can be a great way to boost the overall value of your property.
Landscaping can also improve the overall energy efficiency of your home by providing shade, reducing the heat island effect, and creating microclimates.
Also, landscaping has a high ROI, on average between 75-80%, but in some cases, you can expect to get an even higher ROI.
Here are a few landscaping renovation ideas that tend to have a high ROI:
Adding a lawn or a green area
A well-maintained lawn is another great home improvement investment and can significantly improve the overall curb appeal and aesthetic of your home, making it more attractive and inviting.
Planting trees
Trees can provide shade, reduce the heat island effect, improve air quality, and provide a sense of privacy.
Adding a garden
A garden can provide fresh fruits and vegetables, which can also be a great way to improve the overall aesthetic of your home.
Adding an irrigation system
An underground Irrigation system can help to save water and money in the long run.
Building a fire pit or a hot tub
An outdoor hot tub, complimented by a fire pit, can provide a great place for entertaining and relaxation.
Adding landscape lighting
Landscape lighting can emphasize your well-maintained yard and also increase security.
Building a water feature
Building a water feature can provide an excellent place for relaxing and entertaining, and it can also improve the overall appearance of your home.
Flooring
Installing new flooring is next on our list of home improvement items with the best ROI. New flooring can be a great way to update the look and feel of your home, making it more attractive and inviting. It can give a fresh and updated look to a room, and it could increase the value of your home.
Moreover, new flooring can also improve the functionality of your home. Depending on the type of flooring you choose, it can be more durable, easy to clean, or even increase your home’s energy efficiency.
Additionally, installing new flooring can be a good idea for health reasons. Old or worn-out flooring, especially carpets, can contain allergens, dust, and mold and can be a breeding ground for bacteria.
New flooring can help to eliminate these health hazards and improve the overall air quality in your home. Furthermore, depending on the type of flooring you choose, it can provide benefits such as noise reduction, slip resistance, and even thermal insulation.
This home improvement also comes with a good ROI, on average between 70-80%, depending on factors like the condition of previous floors and the cost of installing the new ones.
Here are some types of flooring that tend to have a high ROI:
Hardwood flooring
Hardwood flooring can provide a timeless and classic look to any room, and it could increase the value of your home. This flooring can be refinished multiple times, increasing its lifespan and making it a great home improvement investment.
Engineered wood flooring
Engineered wood flooring is constructed of multiple layers of wood. The top layer is a thin layer of hardwood, while the bottom layer is made up of multiple layers of plywood. This construction method makes engineered wood flooring more stable than solid hardwood flooring and less likely to expand or contract in response to changes in humidity and temperature.
Additionally, engineered wood flooring can be installed in areas where solid hardwood flooring cannot. Areas such as in basements or over concrete slabs. Overall, engineered wood flooring is a good option for homeowners who want the look and feel of hardwood flooring but need a more stable and versatile product.
Luxury vinyl plank or tile
These types of flooring are becoming increasingly popular due to their durability, versatility, and affordability. They can mimic the look of hardwood, tile, or stone and are easy to install and maintain.
Porcelain or ceramic tile
Porcelain or ceramic tile is a cost-effective and durable option that can significantly improve the overall aesthetic of a room. They are also easy to clean and maintain, making them a great option for your next home improvement project.
Carpet
Carpet can be a great option for bedrooms, providing a warm and inviting feel to any room.
If you want to find out which home improvements could bring you the best ROI and increase your home value, sign up for Homescala’s Renovation Portal.
Homescala’s Renovation Portal is a one-of-a-kind AI-based platform that can tell you everything you need to know to execute a smart renovation. From the renovation cost to pre-renovation and post-renovation home value, renovation items ROI, and money-saving recommendations.
On this platform, you can also find contractors, manage your budget, and find out the resale value of your home. These are only some of the things you can get at Homescala’s Renovation Portal.
Replacing the HVAC system
Replacing your old HVAC (heating, ventilation, and air conditioning) system can be an excellent home improvement investment. For one, it can improve the overall energy efficiency of your home, which can lead to lower energy bills.
Updating your HVAC system to a more efficient one, such as a high-efficiency furnace and air conditioner, can help reduce the energy used to heat and cool your home.
Another benefit of an HVAC upgrade is that it can improve your home’s overall comfort and air quality. An outdated HVAC system can struggle to heat or cool your home adequately, leading to uneven temperatures and drafts.
If you decide to upgrade your HVAC system, you can expect around 70% ROI. However, some HVAC replacements have a higher ROI than others.
Here are some HVAC upgrading insights that you can have in mind for your next home improvement project:
Upgrading to a high-efficiency furnace or air conditioner
High-efficiency furnaces or air conditioners can improve the overall energy efficiency of your home, which can lead to lower energy bills and cost savings in the long run.
Adding a programmable thermostat
A programmable thermostat can help improve your home’s energy efficiency by allowing you to set temperature schedules and reduce energy consumption when you are away from home.
Installing a ductless mini-split system
This type of system can provide efficient and flexible heating and cooling options for specific areas of your home.
Sealing and insulating your ducts
Sealing and insulating your ducts can help reduce the amount of cooled or heated air lost through leaks in the ducts.
Adding a whole-home humidifier or dehumidifier
This can help improve your home’s overall comfort and air quality by controlling the humidity levels.
Adding a garage
Adding a garage can be a good idea for several reasons. Besides providing a place to keep one of your larger investments like your car, it can also provide additional living space, which can be used as a workshop, gym, storage room, or even home office.
A garage can be designed to complement the existing architecture and landscaping of your home, making it look more inviting and cohesive.
As far as the Return on Investment (ROI) is concerned, adding a garage can have an average ROI of 65-80%.
Conclusion
Now that you have an idea of which home improvements could add the most value to your home, you can start planning your next home renovation. Renovating your home can significantly improve its overall look and functionality, making it more attractive and inviting. This can lead to a more comfortable living environment.
Making home improvements can also be a great way to save money in the long run. Projects like updating your HVAC system or adding insulation can lead to lower energy bills, while a well-designed and well-maintained landscape can help to reduce water usage.
Furthermore, renovating your home can also be a great way to increase the functionality of your home. For example, a finished basement can provide additional living space. A garage can provide extra storage, and a deck or patio can provide an additional area for entertaining and relaxing.
It’s essential to remember that not all renovation projects are created equal, and it’s important to look for projects with a good Return on Investment (ROI). By focusing on projects with a high ROI, you can ensure that you get the most bang for your buck.
On Homescala’s Renovation Portal, you can check in more detail what renovation items could bring you the best ROI and the renovation cost. You can also find what your pre-renovation and post-renovation home values are. Additionally, you can find money-saving recommendations, contact contractors, and get renovation inspiration ideas.
