Top Three Home Renovations that Provide the Best ROI
When starting a significant home remodel, no matter the reason, you always want to ensure you’re getting the best return on your investment. Renovating your home is a substantial financial investment, and it’s essential to take the time to evaluate the cost versus value to make sure your money is well spent. So which projects offer the most value? Keep reading to learn the top three home improvements that yield the best ROI.
Long-term remodel investments typically don’t rely on popular design trends. If you plan to change your forever home, consider these options to get the best value for your money.
One of the best ways to get a high ROI is by adding an addition to your home. Adding square footage to any house will instantly up your home value, especially if it’s a functional space. Second-story, bedroom, and bathroom additions will improve your quality of living and add value to your home for years to come. RenoFi reports bedroom and bathroom additions to recoup 47.7% to 52.8% of the value at the time of sale.
2. Finishing the Basement
Another excellent long-term investment (and a way to add more living space to your home) is finishing your basement. Many times, basements are dead storage spaces. By finishing the basement, you add a new, functional living area to your home, which more homeowners in high-income neighborhoods have come to expect. Minor drywall, luxury LVT flooring, and fresh paint can make all the difference and easily bump you up to a different price bracket.
3. New Windows
While on the surface, this might not be as exciting as getting more counter space in your kitchen, new windows are a fantastic investment to make for your home. According to RenoFi, window replacements recoup 67.4% to 68.6% of their value at the time of sale. New windows mean better insulation and energy efficiency, which can help save you (and future homeowners) money in heating and cooling. Upgrading your windows can also increase the amount of natural light in your home, which, especially for smaller spaces, can make it seem larger and more inviting. Perspective buyers prefer homes with abundant natural light making it a more attractive real estate investment.
If you’re not planning on staying in your current home for decades, a few short-term investments you can make to help gain a higher ROI are a kitchen or bathroom remodel. Since bathroom and kitchen remodels depend on the popular trends of the time and the current owners’ style, they don’t typically yield a high ROI in the long run but can still be an excellent investment. As the two most utilized spaces in a home, investing in these rooms is a great opportunity to improve your quality of life and create a more functional living space for future home buyers.
Overall, home improvements with the best ROI are projects that add functional space and square footage. RenoFi states that homeowners usually expect about a 70% ROI on home improvement projects. While ROI is important during a home renovation project, it shouldn’t be your only deciding factor. Remodels should be about what’s best for you and your lifestyle. Most importantly, you should ensure that any changes are at the center of improving your quality of life and enjoying your home.
Are you thinking of taking on a home renovation project of your own? Connect with us to see how we can best help!