Maximize Home Improvement Projects Resale Value: 7 Good 4 Bad
What are the most common home improvement projects?
Generally, home improvement projects, or renovations, involve adding square footage and making a house more energy-efficient. Whether you’re renovating your kitchen or bathroom or adding on an extension deck, these home improvement projects resale value is a big plus.
With 80% of the 137 million homes in the U.S. at least 20 years old and 40% at least 50 years old, current and future spending on home improvements and renovations will be necessary to maintain their quality. https://nlihc.org/resource/owners-rental-properties-increase-spending-home-improvement-and-conversions-homeownership
Add-On Rooms
Home improvement projects can significantly impact a property’s resale value, and the return on investment can vary depending on the project’s complexity and cost. According to the Remodeling 2021 Cost vs. Value Report, some home improvement projects have a higher return on investment than others. For instance, replacing the front door with a steel one yields a 65.2% return on investment, while a minor kitchen remodel has a 72.2% return on investment.
Additionally, a study by Zillow found that homes with solar panels sold for an average of 4.1% more than homes without solar panels. Another study by the National Association of Realtors found that adding a bathroom to a home increases the property’s value by an average of $23,000. In contrast, a new roof can add up to $12,000.
Therefore, homeowners should prioritize home improvement projects that will add the most value to their properties if they plan to sell their homes. Factors to consider include the project’s cost, expected return on investment, and current housing market.
Appliance Upgrades
Upgrading appliances is a popular home improvement project as it can be relatively inexpensive and easy to implement compared to other renovation options. According to a survey by the National Association of Home Builders, kitchen and appliance upgrades are the most common remodeling projects undertaken by homeowners, with 81% of surveyed homeowners choosing to update their appliances during a kitchen renovation.
Replacing outdated appliances with energy-efficient models can bring significant value to a home. For example, upgrading to a high-efficiency washing machine can save homeowners up to $550 per year on utility bills. A refrigerator upgrade to an Energy Star-certified model can save up to $260 over five years. Moreover, a survey by the National Association of Realtors found that 68% of homebuyers considered energy-efficient features important when buying a home, indicating that energy-saving upgrades can attract potential buyers and increase a home’s resale value.
Additionally, smart appliances, such as thermostats and lighting, can be a cost-effective upgrade. A study by the National Institute of Standards and Technology found that a smart thermostat can save homeowners up to 10% on their heating and cooling bills, while a smart lighting system can save up to 60% on lighting costs.
Overall, appliance upgrades are an excellent choice for homeowners who want to improve their home’s functionality and value without investing in a complete remodel. Energy-efficient and smart appliances are becoming increasingly popular among homeowners and homebuyers, making them a smart investment for homeowners looking to increase their resale value.
Cabinet Refacing
The cabinet refacing process involves removing the old cabinet doors and drawer fronts and replacing them with new ones. This is a great option for those who are happy with their current kitchen layout and want to give their kitchen a new look. Cabinet refacing is quicker than a full kitchen remodel, as it can typically be completed in just a few days.
With a wide range of styles and finishes available, cabinet refacing is an excellent way to update your kitchen and add value to your home without spending much money. Additionally, cabinet refacing is an eco-friendly solution since it reduces the amount of waste created during a kitchen renovation. If you are handy in the workshop, don’t stop there. Here are 9 DIY woodworking projects to spruce up the house.
Lighting Upgrades
Upgrading lighting fixtures is a simple yet effective home improvement project that can significantly impact a room’s ambiance. According to a National Association of Home Builders survey, 88% of surveyed homeowners replaced lighting fixtures during a renovation project.
Recessed lighting, also known as can lights is popular for creating a cozy and inviting atmosphere while providing ample lighting. A study by the American Lighting Association found that homeowners prefer recessed lighting over other types of lighting, such as track lighting or pendant lighting. Recessed lighting is also energy-efficient, as it can reduce a room’s energy consumption by up to 75% compared to traditional incandescent lighting.
Smart lighting technology is also becoming increasingly popular among homeowners. A study by Grand View Research estimates that the global smart lighting market will reach $38.68 billion by 2027. Smart lighting lets homeowners control their lights with their voice or a mobile app, providing convenience and energy savings. For instance, a study by the American Council for an Energy-Efficient Economy found that smart lighting systems can reduce lighting energy use by up to 90%.
When planning a lighting upgrade, prioritizing safety is essential. Hiring a licensed electrician can ensure the work is done correctly and to code, reducing the risk of electrical accidents and fires. According to the National Fire Protection Association, electrical failures or malfunctions caused an estimated 47,820 home fires in the United States in 2018.
In summary, upgrading lighting fixtures and installing recessed lighting can significantly affect a room’s ambiance and energy consumption. Smart lighting technology is also becoming increasingly popular, providing convenience and energy savings. To ensure safety, homeowners should hire a licensed electrician to perform electrical work.
Roof Replacements
Roof replacements are a common exterior home improvement project in the United States. The Harvard Joint Center for Housing Studies found that over 5 million roof replacements were done in 2019, making it one of the most frequent home improvement projects. The study also revealed that roof replacements have a relatively high return on investment, with homeowners recouping an average of 63.6% of the cost when they sell their homes.
One of the significant benefits of a roof replacement is its impact on utility bills. A well-insulated and properly ventilated roof can help regulate a home’s temperature, lowering heating and cooling costs. The Department of Energy estimates that proper roof insulation can reduce heating and cooling costs by up to 10%.
Moreover, upgrading to energy-efficient roofing materials like metal or asphalt shingles can improve a home’s energy efficiency. Energy Star-certified roofing materials reflect more of the sun’s rays, reducing the amount of heat absorbed by the roof and, consequently, the amount of heat transferred to the home’s interior. This can result in up to 15% energy savings on cooling costs.
In addition to reducing energy costs, a roof replacement can enhance a home’s curb appeal and increase its resale value. According to a survey by the National Association of Realtors, a new roof adds an average of $8,000 in resale value to a home.
In summary, a roof replacement is a worthwhile investment for homeowners seeking to increase their home’s energy efficiency, lower utility bills, improve curb appeal, and boost resale value. It is one of the most common and cost-effective exterior home improvement projects that can significantly affect a home’s appearance and functionality.
What Renovations Add the Most Resale Value to Homes?
Homeowners often embark on renovation or remodeling projects with the hope that they will increase their home’s market value. Unfortunately, some renovations add no value, and some may even detract from your home’s resale value.
Please note that these estimates are only for illustration purposes and should not be considered advice. The actual change in resale value will vary depending on the specific property, location, and the quality of the work done.
Boost Your Home’s Value With Cost Effective Home Improvement Projects
Home Improvement Projects That Add Value
| PROJECT DESCRIPTION | COST RANGE | ESTIMATED CHANGE IN RESALE VALUE |
|---|---|---|
| Kitchen Remodel | $12,000 – $35,000 | +5% to +15% |
| Bathroom Remodel | $5,000 – $20,000 | +5% to +10% |
| Adding a Bathroom | $20,000 – $60,000 | +5% to +10% |
| Basement Renovation | $10,000 – $40,000 | +5% to +10% |
| New Roof | $5,000 – $15,000 | +3% to +7% |
| Energy-Efficient Windows | $5,000 – $20,000 | +2% to +7% |
| Exterior Painting | $1,500 – $5,000 | +1% to +5% |
Home Improvement Projects That Do Not Add Value
| PROJECT DESCRIPTION | COST RANGE | ESTIMATED CHANGE IN RESALE VALUE |
|---|---|---|
| Swimming Pool/Hot Tub | $30,000 – $60,000 | 0% to -2% |
| Overly Customized Landscaping | $5,000 – $30,000 | 0% to -5% |
| Wall-to-Wall Carpeting | $2,000 – $10,000 | 0% to -3% |
| Garage Conversion | $10,000 – $40,000 | 0% to -5% |
These general estimates do not address the variation in regional estimates for a home improvement project costs and resale value. However, it is generally understood that factors such as labor costs, material prices, and local real estate market trends can significantly influence these estimates region by region.
Home improvement projects that increase resale value are also a way to maximize retirement savings.
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Peter Amaral (aka Mauricio Boston), the editor and curator of this site, has done "over 40" nearly twice. He's picked up a few tips over the years on what men must do to thrive and flourish in health, wealth, and their relationships with family and friends. For a backgrounder, Maurcio is an 82nd Airborne alumus, served as a combat engineer platoon leader in Vietnam, and practiced law for 20+ years. Before earning his professional degree, he worked in film production, sales and marketing, and did stints as bar tender and iron worker. He's been married to the same exceptional woman for longer than maybe most of you have been alive, has three exceptional daughters and a parcel of grandchildren. Mauricio does some of the research for the site. He's not a medical doctor, and never got closer to shooting par than that damn one stroke, but he is an ersatz woodworker, does have personal experience with prostate cancer and can speak intelligently with his cardiologist, with whom he disagrees on the supposed bad effects of red meat. In other words, we write about lots of things we've learned and experienced. Expert professional writers do the rest, always under the careful eye of our chief editor.