What Home Improvements Increase Home Value?
12 High-ROI Projects That Won’t Break The Bank
Plus 11 Mid-Range to Upscale Home Improvement Projects With the Highest Returns
We’ve all heard stories about people who invest in a mild fixer-upper at the right time, embark on several months or even years of improvements, and re-sell 3-5 years later for a $200K+ increase in home value. And if they spent their time and money wisely, they likely walked away with a nice reserve of cash in the bank. While this success story often relies on an element of lucky timing—the only way to guarantee a 10%± return is to keep it as a long-term investment and pay attention to the market—making the right home improvements can make all the difference.
As a real estate agent with decades of experience, I help my clients make the right improvements that offer solid returns. I consider each person’s unique situation and market trends when I answer the common questions: Should I upgrade my home or sell it as is? What home improvements will increase my home value over time?
Every year, Remodeling Magazine publishes research that compares average costs of specific home improvements with the value those projects retain at resale. While I consider each person’s unique situations, taking a moment to compare this cost/benefit analysis for home improvements can help you walk away with the biggest returns on your investment. At the very least, it can help you prepare for a conversation with your real estate agent.
So before you invest your hard-earned savings on an expensive kitchen remodel or upgrade for the master bedroom, check out our top research-based recommendations for making your home more desirable and increasing the value quickly… without breaking the bank. Keep in mind that your returns will depend on the home you are selling, the market, and whom you are selling it to.
Exterior Home Improvements: Focus on Curb Appeal
Decisions about buying a new home are often emotional—no matter how many discussions of numbers and returns come into play—so it pays to make a good first impression. If your buyers are fixated on a messy front yard or chipped exterior paint, it doesn’t matter if you’ve recently done an expensive kitchen remodel or installed a skylight in the master bedroom. Buyers with a negative first-impression will start to look for other signs of neglect in your home. On the other hand, buyers who fall in love at first sight will likely see the rest of your home with an open mind and heart. So take the time to enhance the curb appeal of your home. With a beautiful entrance, any out-dated or funky interior features may have less of an impact.
Get started by improving the front of your house—including landscaping, exterior paint, the garage door, and the front door. Manage your buyers’ emotional reaction from the start and your negotiations will likely be in your favor. Then move onto the mid-range to upscale projects that offer the biggest returns. It’s important to consider which upgrades are trends that will pass and which improvements will be long-lasting. Don’t hesitate to contact me for a consultation before you get started.
Specific Exterior Low Cost Home Improvement Projects to Consider:
1. Low-Maintenance, Water-Smart Landscaping
2. Re-paint the Front Door
3. Touch up Exterior Paint
Midrange to Upscale Exterior Home Improvement Projects With the Biggest Returns:
1. Garage Door Replacement
Job Cost: $3,611
Resale Value: $3,520
Cost Recouped: 97.5%
2. Entry Door Replacement (Steel)
Job Cost: $1,826
Resale Value: $1,368
Cost Recouped: 74.9%
3. Manufactured Stone Veneer
Job Cost: $8,907
Resale Value: $8,449
Cost Recouped: 94.9%
4. Grand Entrance (Fiberglass)
Job Cost: $8,907
Resale Value: $8,449
Cost Recouped: 94.9%
5. Window Replacement (Vinyl)
Job Cost: $16,802
Resale Value: $12,332
Cost Recouped: 73.4%
6. Siding Replacement
Job Cost: $16,036
Resale Value: $12,119
Cost Recouped: 75.6%
Summary:
- Focus on first impressions
- Key word: Curb Appeal
- Low-Maintenance, Water-Smart Landscaping
- Re-paint the Front Door
- Touch-up Exterior Paint
- Replace the Garage Door
- Invest in a New Steel Front Door
- Manufactured Stone Veneer
- Window Replacement
- Siding Replacement
Interior Home Improvements: Where to Start
While kitchen and bathroom remodels are still lingering at the top of the list on Consumer Reports’ survey results for ideal home features—especially for millennials—it pays to start with less-expensive, higher return upgrades. As you know, repairing any holes or cracks in the walls and ceiling, fixing leaky faucets and adding a quick coat of paint will give positive first impressions. Taking out old, stained carpets and upgrading furniture (or investing in staging) are equally important. After you cover the basics, you may want to consider a partial kitchen and bathroom remodel, especially if you have the skills and time to DIY, or if you plan on living in your home for several years.
Specific Low Cost Home Improvement Projects to Consider:
1. Repair any holes or cracks in the walls and ceiling
2. Fix leaky faucets
3. Fresh coat of interior paint (neutral colors)
4. Remove or clean old carpet
5. Replace old toilets
6. Switch fluorescent lights to LED
7. Update appliances, fixtures & lighting in kitchen & bathroom
8. Consider replacing counters with concrete, natural stone or quartz
9. Install a smart thermostat
Midrange to Upscale Interior Home Improvement Projects With the Biggest Returns:
1. Minor Kitchen Remodel
Job Cost: $22,507
Resale Value: $18,123
Cost Recouped: 80.5%
2. Major Kitchen Remodel
Job Cost: $66,196
Resale Value: $41,133
Cost Recouped: 62.1%
3. Midrange Bathroom Remodel
Job Cost: $20,420
Resale Value: $13,717
Cost Recouped: 67.2%
4. Universal Design Bathroom Remodel
Job Cost: $33,374
Resale Value: $20,868
Cost Recouped: 62.5%
5. Upscale Bathroom Remodel
Job Cost: $64,743
Resale Value: $38,952
Cost Recouped: 60.2%
Summary
- Kitchen and bathroom improvements are still highly desirable
- Focus on small low-cost high impact project to start
- Repair any holes or cracks in the walls and ceiling
- Fix leaky faucets
- Fresh coat of interior paint (neutral colors)
- Remove/clean old carpet
- Replace old toilets
- Switch fluorescent lights to LED
- Update fixtures & lighting in kitchen & bathroom
- Consider replacing counters with concrete, natural stone or quartz
- Add smart thermostats and embrace new technologies
- If you are a contractor or plan on living in your home for several more years, consider remodeling the kitchen and bathroom with universally appealing features.
*Cost estimates based on research reported at Remodeling Magazine
