Our homes are our most treasured possessions, not just for the memories they offer but also in monetary terms. When the time comes to sell or just spruce up, everyone wants to make sure they are putting their money where it will make the most difference. The national average return on investment (ROI)
for home remodeling projects is around 70%. So, where should you start? Let's dig in.
Average ROI by home improvement project
It's always smart to know the numbers when it comes to remodeling. Here's a concise table highlighting some of the best ROI home improvement projects
||Avg. ROI %
|Midrange Bathroom Remodel
|Minor Kitchen Remodel
|Major Bathroom Remodel
|Major Kitchen Remodel
|Garage Door Replacement
|Wood Deck Addition
Home enhancement projects to maximize ROI
Giving your kitchen a facelift
The kitchen is often hailed as the heart of the home, a place where meals are prepared and memories are made. Given its central role, a minor kitchen remodel can drastically uplift the ambiance of your entire home. By switching outdated appliances for more modern, energy-efficient models, homeowners can improve functionality while potentially saving on utility costs. Swapping out worn-out countertops for newer materials like granite or quartz can give the space a contemporary touch. And don't underestimate the power of cabinetry – new handles or a refacing can completely change the kitchen's look. Lastly, introducing a fresh coat of paint in a neutral or trending shade can tie all these elements together, creating a space that's both inviting and up-to-date.
A new splash of paint
Colors have a profound effect on our mood and perception of space. Over time, walls can accumulate scuffs and marks or gradually lose their luster. A fresh coat of paint can instantly revive and rejuvenate a room, making it feel cleaner and more spacious. It's a cost-effective way to give your home a makeover without committing to a complete overhaul. When selecting colors, consider shades that are universally appealing, like muted neutrals or soft pastels, as they can make spaces feel larger and are more likely to resonate with a wide range of potential buyers. For those looking to add a bit of personality, accent walls or decorative moldings painted in a contrasting hue can add a touch of flair without overwhelming the space.
Bringing shine to your floors
Flooring is one of the first things people notice when they enter a home. Over the years, hardwood floors can endure wear and tear, losing their sheen and showing signs of distress. Refinished hardwood floors, however, can instantly elevate a room's elegance. Homeowners can breathe new life into their existing floors by sanding down imperfections and applying a fresh layer of stain or sealant. The result is a shinier, smoother surface that reflects light and makes spaces feel brighter and more expansive. Beyond aesthetics, well-maintained hardwood floors are durable and can stand the test of time, offering potential buyers the allure of both beauty and longevity.
The magic of mirrors
Mirrors are versatile design elements that can instantly transform the look and feel of a room. When strategically placed, they can amplify the perception of space and enhance the overall aesthetics of your living area. This effect is particularly pronounced in smaller rooms, where space optimization is essential. Additionally, mirrors can also be used as decorative accents. Choosing mirrors with interesting frames or unique shapes can add a touch of elegance or personality to your space. A well-placed mirror can become a focal point, drawing attention and creating visual interest.
Updating fixtures and fittings
Investing in new hardware, like doorknobs, handles, and faucets, can modernize a room without a complete overhaul. These seemingly small details can have a substantial impact on the overall ambiance of your space. The benefits of updating hardware extend beyond aesthetics. New handles and knobs can improve functionality and safety. Ergonomic designs and durable materials can enhance ease of use and longevity, while advanced security features on entry door hardware can bolster your home's safety. Additionally, changing hardware is a relatively simple and DIY-friendly project for many homeowners.
Enhancing the home's outer charm
Enhancing the exterior of your home is an excellent way to boost its curb appeal and overall value. Power washing, for instance, can transform a weathered and dingy facade into a fresh and inviting one, removing years of dirt, mold, and grime. A clean driveway not only adds to the aesthetics but also provides a sense of order and organization to your property. These relatively simple improvements help make a strong first impression and demonstrate your commitment to maintaining your home, which can be a compelling selling point if you ever decide to put it on the market. In addition, low-maintenance plants, trees, and flowers out front can help beautify your outdoor space and make your home more inviting.
Key elements influencing a property's resale worth and returns
The locality's influence
The ambiance and reputation of a neighborhood play a pivotal role in a home's value. This is something most homeowners consider when making home improvements. Beyond the immediate attributes of a home, the surrounding area can be a determining factor for potential buyers. Schools, parks, shopping, dining, and entertainment options can increase the appeal of a home. Furthermore, the quality of nearby infrastructures like roads, public transport systems, and utilities can significantly affect a homeowner's experience. As such, when considering home improvements, it's essential to think not just about the house itself but how it fits and functions within its broader community.
Local trends, weather conditions, and proximity to facilities can influence which home renovations offer the best ROI. For example, homes in warmer climates might benefit more from outdoor living spaces or energy-efficient cooling systems, while those in colder regions might prioritize insulation and heating upgrades. Additionally, regions known for their natural beauty might see a higher ROI from large windows and patios that accentuate views. Keeping a finger on the pulse of local demands and preferences can guide homeowners toward investments that resonate most with local buyers.
Current market conditions
Understanding the real estate market, whether inclined toward buyers or sellers, can dictate which home renovations are most beneficial. In a buyer's market, homeowners might need to put in extra effort to make their property stand out, focusing on high-impact renovations that capture attention. Conversely, in a seller's market, where demand outpaces supply, homeowners might prioritize improvements that enhance the home's functional value. Staying informed about local real estate market conditions can help homeowners prioritize projects that align with market demands.
A lengthy remodeling project might inflate costs due to labor, materials, and unforeseen outlays, affecting the return on investment. It's vital to strike a balance between ambition and feasibility. Extensive renovations might be rewarding, but they also come with extended timelines which could expose homeowners to fluctuating market conditions or even changes in personal circumstances. It's always wise to have a clear project timeline, possibly with some buffer days, and to communicate regularly with contractors to ensure projects stay on course.
Planning for the unexpected
Any home renovation might have its set of surprises. Budgeting for unforeseen expenses ensures you remain on track. Older homes might conceal outdated wiring, plumbing issues, or structural problems that come to light only once the renovation begins. Setting aside a contingency fund is crucial to prevent these unexpected challenges from derailing the entire project. This proactive approach provides a safety net, ensuring that surprises don't stall the progress and allowing the renovation to proceed smoothly.
About Sarah Leonard Team
Leading the way in the world of real estate, the Sarah Leonard Team is renowned for its impeccable track record, with recognition both within Illinois and on the national scale. If you're looking to buy or sell a home or have any questions about the Illinois real estate market, contact Sarah Leonard Team