The ROI of Common Home Improvement Projects

February 28, 2024

home improvement projects

Did you know not every home improvement you make will increase your home’s value? Most people think that if they demolish what’s there and start fresh, they’ll significantly increase their home’s value, but that’s not always the case.

 

Home Improvement Projects With the Highest ROI

In most areas, the simpler the renovations, the higher the ROI. So here’s where you should focus your efforts if you’re trying to improve your home’s value while not going over budget with the cost of repairs.

 

1. Repaint your Home

It sounds so simple, but a fresh coat of paint can do your home a world of good. You’ll get the best return if you can afford to repaint the entire house. If not, focus on the rooms buyers care about the most – the  bathroom and kitchen, with the family room or living room coming in a close second. Remember, when you paint your home, don’t overlook the trim and ceilings too. Giving everything a fresh coat will make your home feel warm and cozy, especially if you stick with the neutral colors everyone loves.

 

2. Update your Curb Appeal

You only get one chance to make a first impression. When buyers pull up to your home, they’ll immediately make assumptions about what they’ll see inside based on the  home’s exterior. You don’t have to have a green thumb or create an oasis to positively affect people looking at your home. Instead, make it look neat, well-manicured, and attractive. Add some color with a few pretty pieces of landscaping, but most importantly, ensure the lines are clean, and the home looks well cared for. Don’t forget about the backyard, too, though. This is especially important if you can see your backyard from the street.

 

3. Kitchen Cabinet Updates

The kitchen is the home’s gathering place, and buyers want it to look as modern as possible. If updating the cabinets isn’t in your budget, consider refacing them. Just make sure the structure of the cabinets is in good shape. Then you can repaint or stain the cabinets, making them look brand new. Check out the current trends for kitchen cabinet colors and try to mimic them as closely as possible to get the best bang for your buck.

 

4. Refinish Hardwood Floors

The floors set the stage for your home. If your  hardwood floors  are rundown, it could make your home worth less than you hoped. If it’s not in your budget to replace the floors, consider refinishing them. You can also use this opportunity to change the colors to keep up with the latest trends and bring in the most buyers. Freshly refaced cabinets and refinished floors can make all the difference in how much you get for your home.

 

5. Add More Storage

Make the most of any living space in your home. The more functional each room is, the more your home will be worth to buyers. Any room in the home that feels underused or doesn’t have a specific purpose consider adding built-in storage or repurposing it for other uses. For example, you can add built-in lockers to the mud room or make a larger pantry in the kitchen.

 

6. Replace the Front Door

Going back to your home’s curb appeal, the front door is another area that offers a great return on your investment. You’ll get the best ROI if you can afford to replace it. But a new coat of paint can make a big difference if you can’t. Consider giving the front door a fun color (that’s not too obnoxious), but that gets passerby’s attention. Also, consider fixing any rotted trim or cracks in the frame.

 

7. Update the Basement

You don’t have to completely finish your basement for it to help your  home’s value. Instead, make the basement usable with functional storage and a comfortable area to spend time and entertain, and you’ll improve your home’s value. Consider installing  brighter lighting, spraying the ceiling and walls to clean them up, and add areas for a TV and sitting area. You don’t have to add drywall and a bathroom to make the basement livable and more functional.

 

Home Improvement Projects With the Least ROI

Home improvements can be exciting, but not every  project adds value to your home. Some might seem like a good idea but may not increase your home’s worth much. The following are a few common home  improvement projects  that might not be the best choice if you’re hoping to add value to your home and see a substantial ROI.

 

1. Garage Conversions

If your home isn’t large enough for what you need, you might consider converting the garage to get more usable space, such as an in-law suite. But, unfortunately, this won’t help your home’s value and might hurt it. Here’s why. Most buyers want functional garage space. They want storage space and a safe place to store their car. In addition, a garage keeps cars safe in the colder months and year-round from theft and vandalism. Consider an addition rather than a garage conversion if you need extra space in your  home.

 

2. Luxurious Upgrades

Those granite countertops or marble floors you ‘had to have’ won’t give you a great return on your investment. Sure, they are pretty and make your home look amazing, but most buyers aren’t interested in paying for them. The only exception is if you live in a high-end house in a high-end neighborhood where these upgrades are standard.

 

3. Large Additions

Adding a room onto the house is one thing, but if you add an entire story or make the addition much larger than most homes in the area have, you won’t see a return on your investment. Don’t strive to be the largest home in the area because your home’s value is based on the fair market value of the houses around it. You might not get as much back as you hoped when you sell your home if you add a large addition.

 

4. Swimming Pools

Swimming pools are dangerous in the eyes of most buyers and insurance companies. They are also expensive to keep up with, and most buyers want nothing to do with it. A swimming pool might cause you to lose value in your home, and it may take longer to sell because most buyers don’t want one.

 

5. DIY Home Improvements

Most DIY home improvements cut corners, and buyers can tell. So while they may look good and help your home sell faster, they won’t add value to your home. You’re better off spending money on one expensive upgrade and leaving everything else as-is rather than ‘faking it till you make it.’ Pinterest and other sites are filled with DIY shortcuts that make the upgrades look fancy, but they aren’t upgrades.

 

Final Thoughts

Save your money  for the upgrades that affect your home’s value positively. Focus on rooms families spend the most time, including the kitchen, bathroom, and living area. Upgraded appliances, functional bathrooms, and  remodeled kitchens  do much more for your home’s value than most other remodeling projects.

Your home’s curb appeal should be the first priority; from there, find areas you can improve without breaking the bank. Think simple versus complicated and focus on today’s trends. With the right changes, you can improve your  home’s value and keep money  in your pocket. Whether you choose one or multiple changes, they are bound to  increase your home’s value.

Additional Home Improvement Resources