What Renovations Add the Most Value To a Home

The main reason many property owners complete home renovation or improvement projects is so their home can look and feel just the way they want it to. But there are other benefits associated with such projects too, and one of the most notable aside from overall owner happiness is resale value. Resale value is defined as the price that an improvement can achieve when a home is sold in the future – and as you may expect, some projects have more return on investment than others.

In this post, we’ll discuss the renovations that add the most resale value to a home according to data compiled by the National Association of Realtors’ 2022 Remodeling Impact Report. From a kitchen home improvement project to simply refinishing your hardwood floors, read on to learn more about home renovations and how you can maximize ROI:

Renovations That Add the Most Value to a Home

Kitchen Renovation

A complete kitchen renovation comes with a return on investment of about 75 percent. A kitchen upgrade has an ROI of about 67 percent. Both numbers are significant, especially considering that a kitchen project is likely to be one of the most expensive and time-consuming projects you’ll carry out on your property. The more you put into your kitchen project, the more you’ll get out of it. Some kitchen remodel tips that you’ll want to consider include:

• Investing in kitchen custom cabinets: There are more than just stock options to select from when it comes to kitchen cabinets. Today, you can customize cabinets by wood type, finish, color and door style to really zero in on the look and feel that you want in this space.
• Storage space: Cabinets are a big part of the storage space a kitchen offers, but there are other ways to maximize this as well. Adding a kitchen island, pantry or other feature specifically designed to store pots and pans, dishware and cooking ingredients can go a long way toward creating a functional kitchen and maximizing resale value.
• Counters: From quartz to granite to marble, there’s no shortage of countertop options to select from on your next kitchen project. It’s important that they complement the cabinets and flooring.

Bathroom Renovation

Per the National Association of Realtors’ 2022 Remodeling Impact Report, a bathroom renovation is another project that has a cost recovery of more than 70 percent. A full bathroom remodel typically includes replacing the flooring, vanity, fixtures and lighting. It may also consist of rebuilding the shower or bath area and/or replacing the tub and toilet. Per data from Modernize, the average bathroom remodel runs about $21,000, with about 70 percent of this cost recouped in added value. It’s also estimated that more than a quarter of property owners perform some sort of upgrade to their bathroom before listing their homes on the market.

Wood Floor Refinishing

Wood floor finishing or installing wood floors has one of the highest ROIs among all home improvement projects, coming in at 147 percent and 118 percent, respectively. Wood floors are one of the most sought-after features by homebuyers – and for a variety of reasons. For instance, if cared for properly, they can last for several generations. People love them for their timeless look and aesthetics. They’re also durable and easy to clean.

Other Projects

There are a variety of other home renovations that add significant value to a home. Here’s a look at some of them:

• A closet renovation has an ROI of more than 80 percent.
• Finishing a basement into a living space or an additional bedroom has an ROI of more than 85 percent.
• Adding a bathroom or bedroom onto a property has an ROI of 63 percent and 56 percent, respectively.

As we said in the beginning, the main benefit of any home improvement project is to create the space or the environment that you desire for your property. And increasing your property’s value is certainly an additional benefit – and one that should be considered when making decisions about what features to include.

Contact Us Today

For more information about the renovations that add the most value to a home and for further insight into kitchen renovations and the value of custom kitchen cabinets, contact Builders Cabinet today on our website or by phone at 312-829-4300. We offer free estimates and consultations to help create the kitchen of your dreams.