When it comes to adding value to your home, it's important to think beyond just your bedroom closets. According to the National Association of Realtors (NAR), a closet remodel can offer a return of around 83% when you decide to sell. Not only will these renovations help you organize your space more effectively, but they can also save you time in the long run. If you're looking for a bigger project, consider turning your attic into a living space.
This will involve laying floors, installing walls, and making sure the space is properly heated and cooled. You'll need to work with an electrician to make sure the electricity and lighting are up to code. Renovating your property may not seem like a big project conceptually, but it needs the attention of a professional if you want to get the average of 75% return on investment (ROI) that the NAR reports. The kitchen is often seen as more than just a place to store and prepare food; it's an area where memories are made and life lessons are learned.
This is why kitchen remodels are a popular choice as homes age. When remodeling your kitchen, you may want to consider replacing appliances or reconfiguring them in different places. You may even decide that you need more space for your kitchen and push the outer wall out while you remodel it. The NAR estimates that kitchen improvements perform around 67%, while the performance of a complete kitchen remodel is around 75%.
Bathroom renovations are also a great way to add value to your home. This is the perfect time to switch to high-efficiency toilets and showers, reducing water consumption. You'll also need to make sure that all outlets and GFCI outlets meet modern building codes. The NAR estimates that renovating a bathroom yields a return of around 71% when you sell your house.
If you're looking for an even bigger project, consider adding an extra bathroom. You'll need running water, waste, and electricity for this project, so it's important to work with a designer who can plan how you'll connect to your current systems. The NAR estimates that you can expect a return of around 63% with a new addition to a bathroom. The renovation project with the highest ROI? Hardwood floor finishing, according to the NAR.
You can recover 147% of the costs of this project. Improving insulation is in the top three for projects that will provide you with the best ROI. Unless your kitchen is extremely outdated, dysfunctional, or damaged, the chances of getting a 100 percent return on investment in a kitchen remodel are slim. That's not to say that granite countertops and steam showers don't pay off; kitchen and bathroom remodels are still two of the best investments you can make in your home. Remodeling magazine classifies minor kitchen remodels in the “mid-range” cost category, due to the limited scope of work. In some regions, such as the Midwest (which includes North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Kansas, and Missouri), a small kitchen remodel only ranks seventh in terms of ROI.
Talk to your real estate agent to determine if recent offsets in your area support a kitchen remodel. From a financial point of view, the best (and smartest) type of kitchen remodeling is one that you can enjoy for a few years before selling it, since it's unlikely that you'll get back 100 percent of the money you spend on the renovation. Across all regions in the report, a minor kitchen remodel offers the best return on investment of any type of kitchen remodel. If you're in a region where a minor kitchen remodel doesn't yield high returns, it might be worth considering another home improvement that does. If you don't want to go through the headache, time and expense of a minor or major kitchen remodel and there aren't any functional issues in your kitchen, selling without remodeling first might be your best option. When remodeling your kitchen for resale, use traditional materials and appliances such as all-wood cabinets, commercial-looking appliances, natural wood or stone floors, and stone countertops. The average performance of a kitchen remodel varies greatly depending on the region, local market conditions and level of renovation being carried out.
