Home improvement projects are one of the most basic ways to increase your property’s value. As prevalent as these are, not all renovations will contribute greatly to your home’s property value, costing you a hefty sum without actually contributing to a better ROI.
For example, kitchen remodeling and bathroom renovation are popular improvement methods that will certainly increase property value. Meanwhile, projects like landscaping or roofing renovation often fail to convince people to pay more, at least not enough to recoup the cost of the project itself.
Whether you’re planning to enjoy the fruits of your home improvement project and then sell after a few years or just want to make a quick profit in flipping houses, here are three projects that are most likely to add significant value to your property.
1. Remodel the Kitchen
Remodeling your kitchen can boost the value of your home because it can elevate the entire look and feel of a property. Adding an additional island with a marble countertop can transform your kitchen from being a humble single-wall to an upscale U-shaped with island setup.
That being said, it’s important to consider the cost of the project against the actual value that it will add to your property.
According to a 2019 report by the National Association of Realtors (NAR), there is a sharp drop in return when it comes to the total cost of the upgrade and how much you can expect to recoup after a resale. For example, a minor kitchen remodeling, with an average cost of $23,452, is expected to fetch a value of $18,206—resulting in a loss of 22.4%.
Meanwhile, a major kitchen renovation costing $135,547 comes in at $72,993 at the resale market, a 46.1% loss!
2. Add a Home Office
With remote work setups becoming a major trend in businesses today, it’s likely that many potential homeowners are looking for houses that already have a dedicated home office. If you have an extra room in your home that you’ve been using as a guest room, consider turning it into an office! Make sure to top it off with grounded outlets, data ports, and an extra phone line for added accessibility and functionality.
3. Update the Bathrooms
Fixing up your home’s bathrooms is one of the best projects to do if you’re looking to increase your home’s property value. Just keep in mind that there is also a diminishing return when it comes to bathroom remodeling initiatives.
According to the latest data by the Remodeling Magazine, a midrange remodeling renovation project that costs about $21,377 could fetch you $13,688—or a loss of 36% upon resale. Meanwhile, high-end bathroom remodels where you would be expected to pay an average of $67,106 would only give you $37,995 or a 43.4% loss on the resale market.
Popular improvements to a bathroom remodel include adding granite and marble countertops, updated fixtures, and adding more light and ventilation to the space.
When it comes to home renovation projects, it’s a good idea to always consider diminishing returns. More than the initial cost, certain factors such as changing tastes, natural wear and tear, and other economic indicators, can all influence the value of your home.
That being said, if your planned resale date is a few years away, it’s best to make the improvements you want to enjoy now and take care of resale value later!
Are you looking for all-in-one design, supply and installation packages for residential and commercial kitchen and bathroom remodeling projects in Marin County? Miconi Marble & Tile has you covered! Our in-house designers and installers take your vision and help make it a reality. Contact us today to learn more about our services!