Renovations and updates are a part of home ownership. Eventually, homeowners will get bored with the look of a room or many rooms in their home. Suddenly, they feel the need to redecorate, update fixtures or completely overhaul the space.
Unfortunately, not all renovations boost home values or even provide a good return on investment (ROI). What room renovations offer the best ROI for home prices? According to HomeLogic (from the National Association of REALTORS®), these five projects offer homeowners the most value for the renovation effort and investment:
- Installing hardwood floor in the living room
- Creating more livable in the attic
- Finish the basement
- Renovate the bathroom
- Upgrade the kitchen
Installing Hardwood Floor in the Living Room
According to HomeLogic, upgrading the living room space with hardwood floors offers a 118 percent ROI. The site estimates that the project could cost around $5,500, while adding $6,500 to the value of the home. It’s important to note, though, that the type of hardwood flooring will impact the cost. For example, Brazilian Cherry is known to be one of the most expensive types of hardwood; it costs $20 per square foot.
Create a Livable Space in the Attic
The attic can represent unused square footage. Convert the attic into a bedroom or a rec area and add more livable space to the home. While homeowners might need to check their attic’s insulation to be sure it’s a comfortable living space, this project represents a 75 percent ROI. HomeLogic estimates that the project can cost around $100,000, but it could add $75K to the value of the home.
Finish the Basement
Like the attic, the basement represents unused livable square footage. Make it livable and finish the basement. Some homeowners create rec areas; others add a bedroom and a bathroom for guests or for older kids or teens. Finishing the basement represents an 86 percent ROI. Per HomeLogic, the project could cost about $57,500 but it could add $49,250 to the price of the home.
Renovate the Bathroom(s)
Bathrooms can be a calming space. Homeowners might spend mornings or evenings relaxing in the bath or shower. However, not all bathrooms are an oasis of relaxation. If the bathroom is outdated or just blah, a revamp can transform the space. Buy tile for the flooring, upgrade to a new shower curtain or remove an old bathtub/shower combo and replace it with a separate soaking tub and nice shower space. The cost of the bathroom renovation could vary depending on the materials and the extent of the project, too. HomeLogic estimates a bathroom remodel at $35,000; however it could add $25,000 in value (a 71 percent ROI).
Upgrade the Kitchen
Old kitchen appliances aren’t modern in style and they could be less efficient. If the kitchen has remained the same for the past few decades, it might be time to upgrade the space. Again, homeowners might choose to redo the flooring. They might install hardwood or new tile. They also could replace outdated appliances with new energy-efficient models. Homebuyers might be attracted to newer kitchens, and this could be a renovation project that’s worth the time and cost.
HomeLogic estimates a kitchen upgrade to cost around $45,000, and it could add $30,000 to the value of the home. This represents a 67 percent ROI.
Other Projects that Help the Value
In addition, HomeLogic also included a bedroom project on its top renovations for ROI. However, the project involves adding a bedroom, and the cost might be a bit high for some homeowners. HouseLogic estimates that a bedroom addition could cost around $172,500, but it adds $100,000 to the value (a 56 percent ROI).
If the home is only a two-bedroom two-bathroom layout, increasing the size to include a third bedroom could significantly impact the appeal of the home to buyers and increase the price of the home, too. However, instead of a bedroom addition, homeowners could consider transforming the attic into another bedroom space. While not all homes could be conducive to an attic bedroom, older homes could be ideal for this project.
Not all renovation projects add value to a home. Some renovations are purely for the homeowner’s enjoyment (like an in-ground pool). There are several projects that positively impact the value of the home, are a good investment for homeowners, and that also add to the beauty of the home. Consider installing hardwood floors in the living room, renovating the bathroom, updating the kitchen, or even creating a living area in the attic or basement. While some of these projects are an investment, the expense could pay off when homeowners are ready to put their house on the market.