5 Home Improvement Projects That May Have the Biggest Return on Investment
Conventional wisdom has long held that kitchens and baths sell homes. Those are also two of the more expensive areas to tackle for home improvement, but if you make sound design and material decisions, you could end up making your home more appealing to potential buyers — and a more enjoyable place for you to live.
A recent study from the National Association of Realtors1 confirms that kitchens and baths still top the interior home renovation projects that appeal most to potential buyers. The survey ranked the projects’ likely value to the home for resale. These five home improvement projects can potentially provide the biggest bang for your buck for ROI.
1. Complete Kitchen Renovation
NARI Remodelers’ cost estimate for the project: $60,000
REALTORS® estimated cost recovered: $40,000
Percent of value recovered from the project: 67%
The look and feel of a kitchen can serve as shorthand for how up-to-date the owners have kept a house. Potential buyers have been known to rule out homes based on kitchens alone. Stainless steel appliances and granite countertops continue to be on many buyers’ checklists, especially those who want to move right in and start entertaining.
The top reason for renovating a kitchen, cited by 36% of homeowners, was to upgrade worn-out surfaces, finishes, and materials. According to the Remodeling Impact Report, 12% of realtors said a completely renovated kitchen most recently helped them cinch a deal, resulting in a closed sale.
2. Kitchen Upgrade
NARI Remodelers’ cost estimate for the project: $30,000
REALTORS® estimated cost recovered: $20,000
Percent of value recovered from the project: 67%
A less expensive alternative to completely gutting a kitchen is an upgrade. Replacing dated appliances, refinishing cabinets and changing out tile backsplashes are some cost-effective updates that can still modernize a kitchen and make it more appealing to buyers. Read More
