Home Renovations: What Adds The Most Value?

Before you spend big money on home renovations, one thing you may want to consider is what the ROI is for each area of your home and what improvement will land you the biggest offer when you sell. The data from the National Associations of Home Builders suggests that adding a home office space and finishing your basement are the two highest ROI home improvements. COVID has changed the way that everybody views their living space and work-from-home spaces have become one of the most important parts of a house. We are also seeing buyers flee their apartments and condos, in search of space. The more finished and livable space that you can have in your home, the more attractive it's going to be when it's time to sell.

The 3rd highest ROI home improvement is opening up your floorpan. The market is now being driven by millennials, and millennials are obsessed with open concept. If you own an older home in a neighborhood full of wraparound kitchens, turning your home into an open concept space will instantly make your home stand out and bring a flood of millennial buyers ready to bid. While you're renovating your kitchen into an open concept masterpiece, one other high ROI improvement is refinishing your floors or installing new floors. In comparison to what they cost, new floors will add more value more quickly than redoing bathrooms or updating the kitchen countertops.

Not all home renovations are done with an eye on ROI, since renovations often are done to enhance your own life and living experience. However, some of the worst ROI improvements are adding a pool, a full kitchen remodel with new counters and appliances, and putting in a high end roof such as a metal roof. So before doing these at home projects just be aware that they don't necessarily mean you can keep track of your expenses on them and then add that onto the list price when it's time to sell. If you're thinking of updating your home to sell for top dollar, be sure to reach out and let us walk you through how to maximize value with a few simple updates!