More and more homeowners are taking on remodeling projects, but those who are investing in high-level renovations may not be seeing the full value of their efforts. According to the National Association of Realtors, the average amortization of the resale value of a home is 56 percent of the cost of remodeling. If you're looking to increase the value of your home, it's important to understand which projects offer the best return on investment (ROI). To help you make an informed decision, we've compiled a comprehensive guide to the renovations that offer the highest ROI nationwide.
One of the most effective ways to boost your home's value is to improve its curb appeal. Adding stone siding, even in just a part of your house such as the entryway, can give your exterior a classic and elegant look that will attract potential buyers. According to Remodeling Magazine's Cost vs. Value Report, this project can recover almost all (91 percent) of its cost when you sell your home.
Updating the most visible parts of your home, such as the kitchen and bathrooms, is also a great way to increase its value. In the bathroom, experts recommend making it look “functional and clean” by painting it and changing out fixtures for an updated model. You should also consider refreshing tiles and re-glazing the bathtub. According to the same report from the National Association of the Remodeling Industry, real estate agents estimate that homeowners can recover up to 57% of the cost of renovating a bathroom if they sell their home.
The kitchen is another area where you can make significant improvements that will add value to your home. While it may be tempting to go all out with a full renovation, it's important to keep in mind that some projects may not be worth the cost. For example, installing high-end appliances or custom cabinets may not be worth it if you're looking for a good ROI. Instead, focus on making small improvements such as replacing countertops or updating cabinet hardware.Another way to increase your home's value is by adding outdoor living space.
Building a deck or patio can be a great way to add usable space and make your home more attractive to potential buyers. Value Report, this project can recover almost all (93.3 percent) of what you spent on it when you sell your home.Finally, if you're looking for ways to finance your remodeling projects, consider taking out a loan specifically designed for home improvements. These unsecured personal loans are available through banks, credit unions, and online lenders.Before deciding on a remodeling project, it's important to evaluate its cost compared to its value and decide if it's a valuable investment of your time and money. If you plan to continue living in your home for some time after the renovation, you may want to prioritize projects that will improve your quality of life rather than those that offer the highest ROI.