Home Renovations That Generate The Most Return on Investment

Considering a home renovation project, but wondering what kind of return you can expect to see on your investment over the long-term? Not all renovations are equal and sometimes smaller projects can deliver the most bang for your buck when it comes time to sell whether it is now or in the future. 

Everyone already knows that kitchens and baths sell a home, but there are a few other renovations you can do that will potentially provide a good return on your investment. 

Home Renovations Kitchen Remodel

Minor Kitchen Remodel 

While it is recommended that you keep the remodel on the smaller side if resale is on your radar, updates to the kitchen pay off regardless. You can start small by replacing fixtures and lighting, painting or refacing the cabinets, adding new hardware, updating the paint, and adding new flooring. Want to go a step further, consider new countertops and add a backsplash. 

Kitchen Appliance Upgrade

Upgrade Appliances + Improve Energy Efficiency 

Replacing older appliances with new energy-efficient models, which are better for the environment and use less energy, can save you money in the short term and make your home more appealing when it comes time to sell. In addition to new kitchen appliances, small updates like adding extra insulation to your attic, and sealing cracks around doors, windows, light switches, and electrical sockets can help make your home more energy-efficient and a better investment over time. 

Bathroom Upgrades

Beautify the Bathrooms

Like the kitchen, don’t go crazy about renovating your bathrooms if you are planning to sell. Rather, install new fixtures, brighten the room with paint, upgrade the flooring, and re-grout the bathtub. A new mirror and light fixtures can easily transform the look of a bathroom. Of course, a luxury shower is always a showstopper if you want to really make an impact.

Home Renovations for ROI

Add Outdoor Living Space

In addition to making the all-important upgrades to your kitchen and bathrooms, adding living space can be a good investment. Adding a deck can provide a high return on investment, as it increases the living area but costs less to build per square foot than an actual home addition. Like most of these renovation projects, don’t go overboard. Creating a backyard paradise is nice, but there’s a limit to how much it will help your long-term resale price and, thus, your return on investment.

Basement Home Upgrade

Give the Basement a Makeover

Renovating your basement is another way to add to the amount of living space in your home without the expense and hassle of a home addition. When well done, a nicely finished basement can add significant value to your property and provide a strong return on your investment over time. But, let’s face it, there’s more than just financial return on investment when it comes to home renovation projects. Giving your basement a makeover will help your home better fit your lifestyle and your family’s needs … and will still provide you with a strong return on your investment when it comes time to sell. 

With mortgage interest rates remaining low, it may be a good time to refinance in order to obtain cashout from the equity for your home improvements. If you’re unsure if a mortgage refinance is the right financial action for you, contact our team of mortgage professionals to evaluate your current plan and long-term goals. Of course, if it is time to sell your home and find a new one, be sure to get pre-approved today to make your home search that much easier.