Yahoo Finance Most Common Home Renovations — Do They Help or Hurt Your Home Value?
Americans may not spend as much time at home as they did during the pandemic, but most still want to be safe and comfortable in their houses. Homeowners spent $463 billion on home renovations in the first quarter of 2024, according to a report from the USA Today Homefront team.
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However, any home renovation project should also be viewed with an eye on return on investment. When you sell your house, will you make back a portion of what you spent? This is especially important to keep in mind if you are prepping your home for sale and won’t be there long enough to enjoy your improvements.
Surprisingly, some of the most costly and popular upgrades don’t deliver as much ROI as you’d think when you sell your home.
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Kitchens
A full-on kitchen remodel costs an average of $80,000, according to National Association of the Remodeling Industry calculations. A kitchen upgrade can cost roughly $45,000.
At these prices, you aren’t likely to get that full amount back when you sell your home. The National Association of Realtors estimates the cost recovered when you sell will be $60,000 and $30,000, respectively.
Fortunately, there are ways to cut costs on a kitchen remodel or upgrade. Danielle Mathews from Reborn Renovations suggested refreshing your cabinets to give the room a new look. “Many older cabinets are made from solid wood and are higher quality than common modern cabinet solutions,” she said. “A good repaint and fresh hardware can give you the cabinets you want a lot less time and money.”
Bathrooms
One-quarter of homeowners renovated their guest bathroom, while 23% renovated their primary bathroom, according to the 2024 Houzz & Home Study. But they might be surprised that they won’t recoup those costs when they sell.
A typical bathroom renovation costs $35,000, but only adds $25,000 to the resale value and appeal of your home.
Mathews pointed out that the tiling, faucets, fixtures and plumbing can increase your bathroom remodel costs. If you can get away with it, she recommends replacing fixtures without hiring a plumber to update the pipes.
“Find creative solutions to keep the layout of the shower, toilet, and sink as-is,” she said. A bathroom update can be a largely do-it-yourself project without changing the room’s layout. “Simple tasks such as painting, tiling, or installing fixtures can often be completed by homeowners with basic DIY skills,” she said.
Roofing
Roofing was the most common exterior renovation in the first quarter of 2024, with 22% of homeowners shelling out an average of $12,000 for a new roof.
Fortunately, this is one improvement that will improve the value of your home. NAR estimates project that you’ll make back every dollar of your investment. A new roof is such a good home upgrade, for your comfort and for your pocketbook, that 33% of Realtors recommend this upgrade before you sell your home.
Windows
Unfortunately, while new windows can help improve your home’s energy efficiency, but you won’t make your money back if you sell, based on NAR statistics. Wood windows can cost an average of $48,000, but only increase your home’s resale value by $30,000.
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Get More Bang For Your Buck with These Upgrades
There are certain upgrades you can make that will deliver an ROI when you sell, but we’re talking in the thousands of dollars, not 10s of thousands. Fortunately, the upfront costs of these updates are also more affordable.
NARI cost estimates show that installing new hardwood flooring costs an average of $5,500, and can add an extra $6,500 to your home’s selling price. Refinishing existing hardwood floors delivers an even better ROI. You’ll make back 147% of your investment when you refinish hardwood floors for $3,400, boosting your home’s value by $5,000.
Updating home insulation delivers a 100% ROI on your $2,500 investment. But that’s not factoring in home energy tax credits that can put money in your pocket, as well as an average of $1,000 in savings on yearly utility bills, according to the EPS Industry Alliance.
“Improved insulation means a more efficient home, and fewer greenhouse gas emissions associated with heating and cooling,” said a representative from the organization.
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This article originally appeared on GOBankingRates.com: Most Common Home Renovations — Do They Help or Hurt Your Home Value?
