According to research firms in the real estate sector, home prices will keep rising in 2024, leading to fierce competition among buyers. This means the improvements you make to your home have the potential to enhance its value, making it more attractive to potential buyers. However, it’s worth noting that home upgrades aren’t created equal – for instance, turning your bathroom into a spa-like space may not be worth the investment, given that it won’t provide you with the highest ROI if you decide to sell your home. On the other hand, improvements like replacing gutters will likely boost your home’s value (this is probably quite surprising, given that it’s not a luxurious transformation, but it’s true).
Whether you’re considering selling your home at some point in the future, enhancing your home equity – or simply making your home feel more enjoyable, some renovations are worth your money, providing a high resale value. Let’s explore them below.
Kitchen remodel
This one probably doesn’t come as a surprise to anyone, as kitchens are known for providing the highest level of ROI – around 98.5%. Although renovating this room is indeed costly (around $15,000), the average return is around $14,600, which means you will capitalise on the initial investment. Buyers don’t want to experience the hassle of renovating a kitchen (let’s be honest: it can be a total nightmare), so they will likely look for a home with a kitchen that is 100% functional and aesthetically pleasing. Now, this doesn’t mean you have to remodel your kitchen entirely if it isn’t in your budget – luckily, there are other ways to make an impact when selling.
For instance, you can change the current hardware, switch old countertops with more modern ones, add a fresh coat of paint, or replace outdated cabinet doors with shaker kitchen doors.
If you can afford a major kitchen remodel, you need to know that this involves taking everything out and redoing it. Consider incorporating an open concept, as this will create more space in the kitchen, making it more enjoyable for buyers. Removing walls is one of the best things you can do when renovating this room, achieving a luxurious aesthetic, and creating an inviting home.
Bathroom renovation
Just like kitchens, bathrooms also have the biggest potential in selling houses. So, instead of making improvements in all of your rooms, consider going for a minor bathroom remodel instead. You don’t necessarily have to renovate the entire room – some small changes here and there will go a long way. For instance, consider opting for a rain shower instead of a shower head; many homebuyers will appreciate this appealing feature, so you can’t go wrong with it. We also recommend replacing the vanity so potential buyers won’t feel like using an old bathroom. Updating the lighting is another significant improvement you can make, as it will make the space brighter, impacting its feel and look.
However, if you’re no longer satisfied with the design of your bathroom and feel like a complete overhaul would be better, then you should definitely go for it. Analyse everything, including plumbing, flooring, lighting, and the shower pan. These elements can either add to the bathroom’s appeal or take away from it – there’s no in-between. If the latter is true, well, you should get to work and create a bathroom that will appeal to homebuyers instantly.
Entry door replacement
While it may seem like a simple improvement, changing the front door is truly impactful. It provides an updated look and considerably increases your home’s value, having an ROI of 90.7%. When buyers come to see your home, the entry door will be one of the first things they will notice, so it only makes sense to make a good impression. It usually doesn’t take long for people to decide whether they will buy a home or not – they will likely make up their minds in the first few minutes after looking at it.
With this in mind, consider enhancing your home’s curb appeal by changing your front door. For instance, investing in a steel door is an excellent idea because it will help you cut down on heating and cooling expenses. Don’t worry – although they may make you think of a jail cell or bank vault, steel doors are available in different styles and colours, so it will be easy to find something that suits your style.
Landscaping
It’s not only the indoor space that can give you great returns for your investments – the outdoors can do so, too. For instance, the average cost for landscaping is $4,900, providing the same average return – it’s a pretty good deal, right? New landscaping can be just what’s missing from your home to make it more appealing. The good news is that there are so many ideas to choose from, including low-maintenance gardens and a focus on sustainability.
Remember that going overboard with landscaping is unnecessary – you want to stick to a simple design, like using plants, incorporating recreation areas, or creating a focal point. Not all buyers are into gardening, so simple landscaping updates are ideal because they don’t require much maintenance.
Basement remodel
If you’re seeking a home improvement with a high ROI, look no further than a basement remodel. As reports show, in 2023, this home upgrade offers an average return of 90.1%. In other words, it means if the initial cost is around $10,000, you can expect an increase of $9,001 in value when selling your house.
Besides offering solid financial returns, a basement remodel offers extra living space suitable for different purposes. For instance, it can be used as a playroom for children, a home gym, or even a home office. Regardless of how you use it, renovating the basement will add significant value to your home, making it worth the investment.
Takeaway
These home improvement projects offer the highest ROI in 2023, so you should consider them if you want potential buyers to be drawn to your property and picture themselves living in it.