The exact return on investment for any particular home renovation can be very difficult to gauge. Changes in home values in the area, buyer expectations, and changing values of the specific materials used for the renovation may all have an impact on the return on investment for the project. Most home renovations do not have a 100 percent return on investment, so homeowners should consider whether the renovation will add convenience or non-monetary value to the home before completing the renovations. Certain renovations that improve buyer perception or home functionality often warrant a higher return than others.
Kitchens are the central part of the home for many families. In addition to food preparation, kitchens are often where family and friends gather to talk, play games, and enjoy one another’s company. Having a kitchen that is stylish and efficient can be a major selling point for a home, which is why kitchen renovations yield some of the highest returns. Having unique features such as a large sink with a modern hands-free faucet or a restaurant-style convection oven can fulfill some buyers’ ideals for a dream home, so the buyer may be willing to pay more for the home with these features than without. Frugality and creativity can also go a long way to yielding high returns when renovating a kitchen’s ceiling, cabinets, tiles, and walls.
Most modern buyers desire a bathroom that has a “wow” factor. This may be obtained with simple changes to tile, sink and vanity design, and lighting. Adding a stand-up shower or oversized tub may also help to sell the home and increase the price that buyers are willing to pay. Seeing a luxury space to relax that is reminiscent of a spa instead of a simple utilitarian bathroom space can entirely alter a buyer’s perception of a home.
A larger square footage will automatically help to increase the value of a home. When done properly, adding a bedroom, family room, or bonus room can increase the entire home value more than the simple square footage addition. An additional room can help to transform the home from basic to luxurious when attention is paid to detail. Features such as fireplaces, outdoor access from guest rooms, and cathedral ceilings may greatly increase the buyer’s view of the home. Buyers may be willing to pay more for certain features that they see as unique and able to improve the quality of daily life.