Home improvements breathe new life into the walls of your home and improve its aesthetical appeal, functionality, and overall comfort. Besides that, home improvement projects impact its resale value, making your house a hot commodity and attracting more potential buyers.
Investing in strategic home improvement projects and paying meticulous attention to detail can distinguish between a good deal and a truly profitable transaction. That’s why you should carefully invest in home improvements with a higher return on investment (ROI), especially if you plan to sell your home any time soon. To make it easier, here’re eight home improvement projects with the highest ROI.
If you have a time-honored home, you may have to do away with outdated kitchen fixtures, worn-out flooring, and bathroom fittings, and even have to undertake major exterior upgrades and repairs. However, when planning major renovations, you must ensure you have enough available funds and a dependable financial backup for any unexpected expenses.
If your home needs major repairs or upgrades, you can apply for flexible financing, which allows you to defer repayments through monthly payment programs. These programs start with a 6-month payment plan and can extend up to 120 months, and that makes plenty of time until you seal a profitable deal with a potential buyer and get a high return on this substantial investment.
Here are some major home renovations with the highest ROI:
1. Kitchen Remodel
An aesthetically pleasing and fully-functional kitchen is usually at the top of potential buyers’ wishlists, with over 58% of buyers considering kitchen design as the most important aspect of home buying. If your kitchen needs a major overhaul, it may seem like a hefty upfront investment, but the returns are also high, having an ROI of 80% after a year.
Work with your contractor to plan a kitchen layout according to contemporary home designs or the real estate market trends. Assess your kitchen thoroughly and preserve as many kitchen elements as possible, like countertops, cabinetries, and appliances. If your kitchen cabinets have retained their structural integrity, don’t install new cabinetries; instead, repaint or repolish them for a fresh look. Change handles, drawer knobs, and outdated hinges for perfect finishing touches.
Repaint the walls and replace any cracked backsplash tiles, or if necessary, invest in new backsplash and flooring. When redesigning your kitchen, make sure it has sufficient storage space and a separate pantry.
Check your countertops in detail; if they don’t have any signs of damage like cracks or chipping, try restoring them instead of complete replacement. Simple repolishing, deep cleaning, and refinishing can restore the pristine look of your countertops. If a replacement is necessary, opt for robust and cost-effective materials like granite, marble, and quartz that can withstand rigorous everyday use.
2. Bathroom Remodeling
Like kitchen renovation, a major bathroom overhaul calls for a comprehensive transformation involving completely removing and redesigning elements. These major upgrades ultimately translate into a higher ROI, the number being as high as 69%. However, we suggest keeping things simple if you plan to throw loads of money into your bathroom remodel. There are many shower and bathtub replacement options that are not only budget-friendly but also make your bathroom more visually appealing.
Apart from a bathtub or shower replacement, you may have to replace vanities, sinks, mirrors, faucets, and lighting. Try avoiding any extravagant fixtures and take any additional thing off the list that doesn’t add value to your bathroom. Although bathroom remodeling is a major home improvement project, it makes a huge impact on a potential buyer’s decision to purchase your home and helps you sell your house at higher profits.
3. An Open-Floor Plan
Open floor plans are the most in-demand features in a house in today’s real estate markets, and a staggering 90% of homebuyers have it on their wishlists. This major home improvement project can increase your home’s net worth by at least 15-20%.
Open floor plans not only add more physical space to your home by removing the separation walls in between but also create a clutter-free, organized, and well-maintained environment. Homebuyers love the idea of entering a grand hall with an open living room and dining room and a visual separation between these spaces and an open kitchen through a stunning kitchen island. With a multifunctional kitchen island, you can create a beautiful centerpiece adding more prep and cooking space to the kitchen while also providing a counter for family activities, storage, and dining.
When designing an open floor plan, ensure your kitchen has a good exhaust system to prevent heat and grease from traveling to the other living areas. Moreover, be sure to keep the overall practicality, accessibility, and layout or decoration flexibility in mind.
4. Enhancing Curb Appeal
A stunning façade and aesthetically appealing backyard and front yard create a great first impression on potential buyers. In fact, curb appeal is among the home improvement projects with the highest ROI and can increase your property’s value by 5-11%. When making exterior upgrades, save as much as possible on siding, window, or door replacements. Swap worn-out sidings with new pieces and repaint the entire exterior to give it a completely new look. However, home exterior upgrades don’t have to be a heavy investment. While building swimming pools, outdoor kitchens, patios, and hardscaping elements may be tempting, we suggest keeping the outdoor spaces basic yet clean and organized.
Among all the exterior home improvement projects, landscaping has the highest ROI of 150%.
Apart from the major home improvements listed above, the following minor home improvements have a huge impact on your home’s overall resale value:
- A fresh coat of paintnot only breathes a new life into your home’s interior and exterior but also makes it stand out in the neighborhood and increases your property’s value by 5%. However, if you plan to sell your home fast, use neutral colors to depersonalize it and give it a contemporary look.
- Repolish or refinish wood flooringto bring it back into its pristine condition. This small yet impactful home improvement project has an ROI of 70-80%.
- Swap old hardware with modern and stylish hardware, such as door knobs, handles, faucets, door locks, window locks or handles, etc.
- Change fused bulbsand replace them with new and energy-efficient lights.
Whether it’s a minor improvement or a major overhaul, home renovation projects almost always increase your property’s overall value and promise a handsome return on investment. For optimal financial impact, work with your real estate agent to evaluate your property’s current value and gain insights on which projects are in high demand and which ones might be best to forgo. Apply for flexible financing options ahead of time so that you have sufficient funds available once you begin your home improvement projects.