KITCHEN RENOVATIONS
Kitchens, unsurprisingly, top our list of renovation projects that will add value to your home. Buyers’ yearning for a great kitchen hasn’t gone anywhere, and they’re prepared to pay a premium for a home with a newly renovated kitchen.
OUTDOOR LIVING SPACES
The trend for a comfortable and well-maintained backyard or outdoor space continues. Far from a temporary pandemic-era want, a great outdoor space has firmly taken a top spot on buyers’ lists of priorities for a new home. Fran Lisner tells us beautiful outdoor spaces are set to be in high demand this year: ‘In 2024, outdoor renovations are expected to be in high demand, offering a potential 100% return on investment.’
FINISHED BASEMENTS
The basement is one of those spaces in the house that is often undeservedly neglected. Yet they are spacious, and many like using them as home offices, playrooms for the kids, or even as additional living areas. The truth is, though, that most people aren’t prepared to undertake a basement renovation project themselves. So, you have an opportunity to wow a buyer with a finished basement.
A finished basement is a basement that has been fitted with an electrical supply, a fully finished floor (carpeted or hard), lighting, and finished walls. It’s a space that is ready to use and has been seamlessly integrated with the rest of your home.
LUXURY BATHROOMS
Luxury bathrooms are another safe-bet value-adding option on our list. With the increasing trends toward spending quality time at home and self-care, spa-style bathrooms remain in high demand and will be for the foreseeable future. As with kitchen renovations, you really get what you pay for with bathroom renovations, so aim for as good an upgrade as you can afford.
SMALLER UPGRADES THROUGHOUT THE HOME
If your kitchen and bathroom are already in good shape, you can add value to your home by making smaller improvements and upgrades throughout the home. Diana Rutherford, Realtor with Realty One Group, recommends focusing on fresh interior paint in ‘a very calming, modern color’ and updating the flooring throughout, ‘keeping the flow of the home consistent.' These two relatively cheaper and shorter renovation projects can make a big difference to the sale value of your home if the major rooms are already in great condition.
FAQS
WHICH RENOVATION WILL ADD THE HIGHEST VALUE TO YOUR HOME?
There are no surprises here. It’s still the kitchen, which on average, will give you a 54% ROI in the US. That’s the national average, but this number can approach 100% on the West Coast, while if you live in parts of the Midwest (in Iowa, say), you’ll get less of a return, around 68%. You should do your research, factor in when you plan on selling, and go from there. If you want to sell in 2024 and live in an area where kitchen renovations don’t have a very high ROI, then you’ll probably just waste money on a renovation. If you still want to live in your house for a few more years and want to enjoy a modern kitchen, go for it. The value-adding won’t just be about the home sale but also about your own comfort.
HOW MUCH VALUE WILL A BATHROOM RENOVATION ADD?
A well-executed bathroom remodel can recoup over 70% of the bathroom remodel costs, which is pretty good as far as renovation ROIs go. Again, this number will be higher or lower depending on your area and the quality of the renovation. Zillow data shows that a successful bathroom renovation can deliver a $1.71 value increase on every $1 you spend. That’s impressive.
WHICH RENOVATIONS WILL NOT ADD VALUE TO YOUR HOME?
Remember how we said at the beginning that not all renovations are created equal? Well, some will actively harm your chances of selling your home at a good price. That’s usually either because the seller has misunderstood the local market or because the result of the renovation is perceived as high-maintenance or completely unnecessary. The top offenders, according to our experts, are:
1. Highly Specific Customizations Our experts are in consensus over this one. 'Customizations that are highly personalized to your taste may not resonate with potential buyers’, warns Fran Lisner of Daniel Gale Sotheby's. ‘Unique features such as unconventional paint colors, extravagant built-in features, heavy and ornate trim, and moldings, or overly themed rooms may limit your home's marketability and potential return on investment.’ Another example of excessive customization is transforming a spare bedroom into a space with a very specific purpose. Jen Turano names theater rooms, home gyms, and photography studios as ones to watch out for because ‘buyers may have their own needs and will then have to undo your recent work.’ Of course, if you’ve had a home gym or theater in your home for many years for your own use, there’s no need to get rid of it. 2. Garage conversions Give this one a miss if you’re renovating purely for value-adding purposes. Fran Lisner cautions homeowners that ‘many buyers value the functionality and convenience of a garage for parking and storage. Removing this space and converting it into living space may limit the appeal of your home and potentially decrease its value.’ If you have a garage, keep it tidy and well-organized and leave it be.