A 2022 remodeling report from the National Association of Realtors shows that 20% of homeowners who take on a home improvement project do so in order to improve the livability
of their homes. However, home improvements do more than just improve the quality of life of a home. There is also an economic return, with these projects generating a revenue of $369 billion
in 2021, a 9% increase from 2020.
Going by those statistics, investing in home improvements can be a shrewd decision. The only downside is that, like all investments, these projects come with their fair share of risks. Therefore, it is imperative to consider where to invest and how the improvements will impact the house value and, ultimately, the return on investment. Different areas of the house require different amounts of investment and affect the house's appeal and perceived value differently. These are some of the best return-on-investment home improvements.
Minor and minor bathroom remodels
Everyone wants to have well-maintained and stylish bathrooms in their homes. During open houses, potential buyers will want to see the condition of the bathrooms and all intimate spaces. Leave them impressed, and you might win their hearts. Major bathroom improvements
can set the homeowner back by $35,000 but will recover the original value of the bathroom by an impressive 71%.
However, homeowners without that kind of budget can still make some improvements to their bathrooms to satisfy the eyes of potential buyers. These should be centered on enhancing aesthetics and functionality. Upgrading fixtures, such as faucets, showerheads, light fixtures, and toilets, can help in this regard.
Albeit using the phrase don't judge the book by its cover is often used, it doesn’t apply to homebuyers. In real estate, the home's exterior is the first impression buyers will have of a house. Landscaping can mean the difference between making the potential buyer feel right at home and turning them away.
A landscaping package that consists of sod, well-maintained lawns, beautiful flowers, trees, and well-maintained hedges will help make the exterior appealing and bring life into the home's front and back yards. Accessory structures such as playhouses, pergolas, patios, and decks can also increase the functionality of the outdoors. Homeowners can also consider hiring professional landscape designers to plan out the landscape of their yards.
Minor kitchen remodel
The kitchen is always a major focal point when buyers are shopping for houses. A minor kitchen remodel is a great way to increase the home's functionality and enhance the home's appeal. It can be undertaken by upgrading countertops, backsplash, and flooring. Installing new cabinets and investing in modern appliances can also help. It's important to maintain a balance between aesthetics and functionality or end up with less than satisfactory results.
Attic bedroom conversion
Homeowners have been known to convert their attics into bedrooms as a way of making better use of space. This increases the square footage of the home's living space, thereby accommodating larger families, creating a private space, expanding the living space, and increasing the home's value in the long run.
The cost of this improvement may be high, but worth the investment. Generally, it costs between $75,000 and $100,000 to convert an attic to a living space
, but this improvement helps to recover the original value by 75%. It's worth mentioning that homeowners should consult professionals to ensure the conversion meets safety standards.
Major kitchen remodel
Although a major kitchen renovation will cost more than a minor one, it has a much higher rate of return. The average cost
of undertaking this project is $60,000 to $80,000, with a 75% recovery rate
. Most of the investment will go towards the changes to the layout of the kitchen as a part of a comprehensive renovation approach. Layout changes may involve rearranging appliances, countertops, and storage areas or knocking down walls to create an open-concept design. This will help maximize space and enhance traffic flow and functionality. Major kitchen remodels can also involve the incorporation of smart home technology to make the kitchen more appealing, functional, and efficient.
Entry door replacement
The entry door acts as a significant focal point of a home's exterior and has the potential to make a lasting first impression. Investing in a new entry door can go a long way in enhancing curb appeal, as it is one of the first things seen by potential visitors once they pull up to the curb of your house. If it's in bad condition, get a replacement, and while at it, remember to choose one that matches or complements the home's architectural style.
One of the most underutilized areas of many homes is the basement. It is usually an area that houses seldom-used equipment but can be turned into a functional and practical living space. In the past, basements have been turned into offices, multipurpose spaces, workout rooms, or additional bedrooms.
However, there are a lot of considerations that need to be taken into account when entering such an investment area, as it poses a higher risk than other renovations. It requires extensive renovation, such as adding windows, insulation, and a new heating/cooling system. It's crucial to plan this out correctly, as it could prove to be the difference between making a profit and suffering a setback.
Whether broken or just old, windows can greatly affect the curb appeal of a home. They also play a major role in a home's overall functionality, energy efficiency, and aesthetic appeal. While replacing windows, remember to consider their size, color, and style to ensure they complement the home's architectural style. They should also be energy efficient, as more buyers are becoming conscious of the long-term effects of energy costs.
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