Remodeling can be fun, especially when the return on investment is solid! You may be looking for a way to increase the value of your home prior to selling (and hey, you can enjoy the upgrades meanwhile!), but choosing the right upgrades makes all the difference. We’ve got some tips for you – check out the best remodel options for adding value to your home below (we’ve also included some upgrades to avoid!).
A kitchen remodel has major potential to increase the value of your home and is well worth the upfront investment. Although you could go all out and completely change every aspect of your current kitchen, you could also make minor changes that have a big impact (and cost less upfront). On average, homeowners spend between $20,000 to $60,000 on a kitchen remodel and the national average for return on investment is between 62% and 80%; in Central Florida, the average is 61% – 74% recouped. Talk with your remodeling expert to determine which upgrades will be most cost-effective and will provide the greatest return.
Bathroom additions are an excellent way to boost the value of your home as well. Just adding a half bath enhances property value; a full bath doubles that increase. You can expect to recoup about 60% of the cost of your bathroom addition project. Like a kitchen remodel, remodeling a current bath can also increase home value and those range from upscale remodels or keep it cost-effective. Generally, bathroom remodel costs start at about $18,000 and move up from there, depending on the kinds of materials required, the time frame, and how many changes you’d like to make.
Energy Efficient Windows
Energy efficient windows have a high return on investment, primarily because of how functional they are and how much they can save you on energy costs annually. It’s a two-fold win. You can expect to get about 80% back on the cost of installing energy efficient windows and that’s not calculating how much money is saved per year on energy costs. According to the U.S. Department of Energy, windows are accountable for 25% to 30% of cooling and heating use in homes. That’s a couple hundred bucks saved each year with energy efficient windows!
Energy Efficient Insulation
Like energy efficient windows, energy efficient insulation is one of the best upgrades for increasing the overall value of your home. When walls are properly insulated, the heating and cooling of your home is made more efficient, also offering a reduction in energy costs over time. In 2016, Remodeling magazine ran a cost versus value comparison that identified a whopping 116% return on investment for energy efficient insulation! You stay warmer in winter, cooler in summer, spend less, and increase your home’s value all in one.
Don’t Add Value
In Ground Swimming Pools
In ground swimming pools may seem attractive at first glance, but the truth is, they’re not worth the investment if what you’re looking for is a solid return. Adding a pool has the potential to increase your property taxes. Also, they are expensive to maintain, they increase the cost of your home insurance, and when it’s time to sell, families with small children may overlook the property completely.
Sometimes a roof needs replacing, especially if you’re getting ready to sell, but don’t count on this upgrade to bring about a big change. According to Remodeling magazine’s cost comparison, you can expect to recoup an average $12,000 through increased home value, but only if the roof was in bad shape to start.
When spending money, it’s important to consider the ROI. Choose upgrades that make sense – and give you the best long-term bang for your buck!