Home renovations can completely transform your living spaces, turning outdated rooms into modern, functional areas that reflect your style and meet your needs. Whether a complete kitchen remodel, a bathroom update or adding a fresh coat of paint, each project can breathe new life into your home.
In addition to the joy and comfort these changes bring into your daily life, renovations can also significantly increase your home’s market value. You enjoy a beautiful and practical home and, should you decide to sell, these improvements can attract more buyers and command a higher price.
The Value of Home Renovations
Renovating your home is an investment that can pay off in more ways than one. Here are the significant financial impacts that can come from upgrading your space.
Increased Home Value
Strategic renovations significantly boost a home’s market value. With the median home price in the U.S. reaching $390,000 in 2022, homeowners have a substantial incentive to enhance their properties through well-thought-out upgrades.
Renovations — like adding energy-efficient windows or enhancing outdoor living spaces — improve the home’s appeal to current market trends. These improvements make the property more desirable to potential buyers and elevate a home’s value well above the median.
Enhanced Appeal to Buyers
Updated homes stand out in the real estate market, attracting more buyers and often leading to quicker sales. When a home features modern amenities or stylish renovations, it catches the eye of potential buyers and meets the high expectations many have for their next home. Certain home features like antique wood made from 100 to 300 year-old lumber may be a selling point for homebuyers looking for unique focal points in their future home.
These updates signal to buyers the property is well-maintained and ready to live in, reducing the need for immediate renovations on their part. As a result, homes with recent upgrades tend to sell faster than outdated ones.
Higher Return on Investment
Return on Investment or ROI is a crucial concept in home renovations, reflecting the gain from an investment relative to its cost. Certain upgrades — like landscaping or roofing enhancements — offer substantial ROI.
However, other approaches — like adding a swimming pool — may be less financially rewarding, often yielding just a 7% increase in home value. This discrepancy highlights the importance of choosing renovations wisely, focusing on those most likely to attract buyers and provide a better return on investment.
3 Cost Effective Renovations for Maximum Impact
Maximizing the impact of your home renovation while keeping costs in check achieves a stunning transformation. These cost-effective renovations enhance your home’s appeal and functionality.
Landscaping
Curb appeal determines a home’s value, as it’s the first impression potential buyers get of a property. A well-maintained exterior, lush landscaping and a welcoming entrance can boost a home’s appeal, making it more attractive to buyers and increasing its market value.
However, maintaining or enhancing curb appeal comes with risks, especially during fall cleanup activities. Using professional equipment for cleaning gutters or painting can drastically reduce the risk of injury.
Painting
A fresh coat of paint is one of the simplest yet most effective ways to refresh your home’s appearance and increase its value. This cost-efficient renovation can dramatically transform the look and feel of your property, making it more appealing to potential buyers.
Remarkably, such painting projects can boost your home’s value by over $6,000, offering a high return on investment. This increase is due to the property's enhanced aesthetic appeal and perceived care, making it a smart choice for homeowners looking to improve their home’s marketability.
Bathroom Remodeling
Updating fixtures and lighting in your home enhances the space’s functionality and aesthetic appeal. Opting for modern faucets, showerheads and lighting fixtures improves energy and water efficiency, leading to potential savings.
Remarkably, a midrange-budget bathroom remodel that includes such updates can yield an ROI of over 66%, underscoring the substantial value these improvements add to your home. It makes updating fixtures and lighting a smart investment for homeowners seeking to boost their property’s marketability and appeal.
The Dual Benefits of Home Renovations
Embarking on home renovation projects offers a unique opportunity to personalize your living space and enhance your property’s financial value. Select a project that reflects your style and market trends to enjoy the dual benefits of these home improvements.
For help selecting the right project for your home, enter your address in the search box on the top right hand corner of this page and submit. On the search results page you'll find renovation ideas specific to your home from our partners at RealmHome.com. There you'll find estimated pricing, ROI on the project and a link to Realm to help find contractors in your area.
