The most common home improvement projects include exterior improvements, such as painting, landscaping, and replacing doors or windows, as well as interior renovations, such as kitchen and bathroom remodels and appliance upgrades. The kitchen is the heart of any home, and small kitchen improvements can include the replacement of cabinet doors, countertops, lighting, floors, and appliances. The best thing about a small kitchen remodel (compared to starting from scratch) is the return on investment. If you sell your house, you could recover about 96% of the money you spent, 2 what if you stay? Upgrading your kitchen is well worth it if you spend a lot of time there. Major projects included painting (45%), redecorating (38%) and kitchen remodeling (38%).
A study by the National Association of Realtors1 confirms that kitchens and bathrooms continue to top the list of interior home improvement projects that attract potential buyers the most. The survey ranked projects based on the percentage of the remodeling cost that would likely be recovered based on the resale value of the home after the remodel. These five home improvements may be the best option for your investment when it comes to ROI. The main reason for renovating a kitchen, cited by 24% of homeowners, was to improve worn surfaces, finishes and materials.
According to the report on the impact of the remodel, 10% of real estate agents said that a completely renovated kitchen recently helped them close a deal, resulting in a closed sale. While 12% of real estate agents suggest that sellers completely remodel their kitchens, 57% have suggested an improvement to the kitchen. Twenty percent of real estate agents have said that recently an improvement in the kitchen helped to close a deal. In addition to the resale value, kitchen improvements can also help you enjoy the time spent in your home, as 29% of respondents cited better functionality and livability as the most important result of their remodel. Bathrooms are another place where a home can show its age, and potential buyers may be hesitant about the cost and work involved in remodeling an outdated bathroom after buying a home.
Even so, while 33% of real estate agents have suggested that sellers complete the bathroom renovation before completing the sale, only 4% said that the project had recently helped them close a transaction. The decision to remodel, often more than out of a desire to modernize it, i.e. to add a new bathroom, is almost as expensive as completely remodeling a kitchen, but it comes as no surprise to potential buyers. Since only 5% of real estate agents suggest that sellers add a bathroom and only 1% say that the most recent project helped them close a deal, this may be a project that makes more sense for homeowners who plan to stay in their homes for several years. The most expensive project on the list, a new master suite or a landlord suite, is another project that may have more value to you while you live in the house, rather than making it attractive to future buyers.
Sixty-five percent of those surveyed said they have a greater desire to be home since they finished the project. Only 3% of realtors have suggested that sellers complete the owner's suite before attempting to sell, and less than 1% said that the most recent project had helped them close a deal. The pandemic had a clear impact on home improvement projects, as people were spending more time at home and moving to remote work. A master suite (i.e., a bedroom with its own private bathroom, walk-in closet, and perhaps a walk-in closet) is one of the most expensive home improvements.
These are also two of the most expensive areas to make home improvements, but if you make wise design decisions and choose the right materials, you could end up making your home more attractive to potential buyers and a more pleasant place to live. Adding a bathroom or bedroom can really improve your quality of life, but you'll only recover 20 to 30% of the cost when you sell your home.
