Which Home Renovations Have The Highest ROI?
Each and every renovation has its benefits. But whether you plan to stay in your house for years to come or you’re moving out within the next five, it’s good to know which home renovations will add the most value to your house.
Here are some home remodeling projects that will deliver some of the highest returns.
The words “roof replacement” may bring you about as much joy as “root canal.” But a recently replaced roof will set your home apart from others when you put your house on the market.
Not only does a roof replacement come with a return on investment of 68.4%, but it can also save on utilities. Just by choosing the right roofing material can result in a 30% decrease in your home’s energy needs. One of the best ways to get an ROI on home fixes is to install metal roofing. A metal roof can last up to three times as long as a shingled roof and they often come with a substantial warranty
Kitchens and bathrooms are some of the most highly renovated areas in a home. According to a Houzz survey, up to 60% of homeowners plan to remodel their master bathroom.
One of the best things about bathroom remodels is that you don’t have to renovate the entire room to get a return on your investment. You can do a cheap weekend project where you replace your light fixtures and hardware or a more expensive project where you replace your tile. You’ll still see an average ROI of 70%.
As we mentioned above, kitchens and bathrooms are some of the most renovated areas in the home. But just like bathroom renovations, kitchen renovations don’t necessarily have to be major to see a good ROI.
Minor kitchen remodels that might include refacing your cabinets, replacing hardware, or installing a new sink can see an ROI of 80.5%. Major kitchen remodels have a smaller ROI at 59%, but they still increase the overall value of your home when the time comes to sell.
Backyard patio addition
There are many reasons why people choose to buy a house. One of those reasons is that homeownership gives you a yard where you can let the dog out, host parties, and let the kids run around without having to go down the street to the park.
A backyard patio addition can bring in an ROI of 47.6% while a deck addition can bring in an ROI of 75.6%.
Unless you plan to use your patio yourself, it might not be worth installing an outdoor kitchen. But a firepit could make your patio even more appealing to future buyers with a 67% ROI.
If you’re not planning on moving for a few years, but your current home isn’t meeting your needs or wants, renovating can be a great way to improve your living space. Just make sure that the renovation projects you choose to take on have a decent return on investment you can take advantage of once it’s time to sell.