Your home is one of the most expensive (i.e. valuable) assets you own. And you should not allow it to lose its value. There will be times when you want to make improvements. Understanding which renovations increase your home’s value the most is super helpful. That answer, my friend, is bathroom & kitchen renovation projects.
Think about why you want to renovate your home. It’s rare to just increase the property’s value. More often it’s about making the home a better place to live. Though, there are times when people want to make their home more attractive to buyers and easier to sell.
These are the people that renovate their properties to sell them above the average price and make more returns on investment, says Rent Easy, a professional property management firm. Studies show that one of the top three reasons for renovation is to make upgrades that will improve the value of the home. However, not all renovations do this. Some renovations may be expensive, but they do not add much value to a property, while others are inexpensive, but also give the most returns on investment.
Surveys also show that bathroom and kitchen renovations are the best ways to improve the value of a property. That is because these two areas of the house are essential to the functionality and habitability of the home.
People often want to know the extent to which kitchen or bathroom renovations can affect the value of a home and the components that provide the best return on investment. Here, we will explain how kitchen and bathroom renovation projects can affect the value of your home.
How Bathroom Renovations Affect the Value of Your Home
The bathroom is a very functional area in your house. It is the second most vital room when it pertains to the value of a home. On a scale of 1 to 10, bathroom renovations offer a joy score of 9.6, according to the National Association of Realtors. Such a level of satisfaction from the bathroom is impressive.
It is one area of the house that determines if a buyer will choose to purchase your home or not. When you are considering bathroom renovations, your priority should be functionality and styling. Bathroom renovations can be minor, major, or midrange.
Minor renovations can cost as low as $6,000, while major remodels can cost up to $60,000. However, a midrange renovation costs $18,000. In all these, you should expect an additional $1.71 for every dollar that you invest in bathroom renovations.
The return on investment is 56.2% for major renovations, 67.2% for midrange remodels, and 70.1% for minor upgrades. The analysis shows that less expensive upgrades offer the best return on investment.
Here are examples of bathroom renovations that can give you the best return on investment:
- Replacing the toilet seats
- Making energy-efficient updates such as low-flow toilets that reduce water bills
- Upgrading the plumbing fixtures to modern ones.
- Installing new floor tiles as heated floors are very impressive in regions with colder climates
- Upgrading the vanity area by installing dual sinks, granite countertops, and a new backsplash
- Allowing more natural light or installing new lighting
- Replacing the bathtub
- Installing glass shower doors
- Installing a walk-in shower with a rain shower head
- Adding an exhaust fan to reduce dampness
- Fixing water damage and repainting the bathroom
- Replacing old cabinets and faucets with modern ones
How Kitchen Renovations Affect the Value of Your Home
Around 80% of buyers confirm that the kitchen has the highest impact on their choice of a property. It is, after all, the heart of every home. Once buyers enter the kitchen, they either decide whether or not to buy a property. It shows the level of impact that the kitchen has on the value of a home.
For this reason, kitchen renovations are the most important upgrades that can improve the resale value of a property. Depending on your budget and the current state of the kitchen, you can decide whether to go for a complete overhaul or a partial renovation of your kitchen. Just understand that it is possible to spend too much on your kitchen renovation.
Kitchen renovations can be upscale, midscale, or minor. Minor kitchen upgrades cost between $11,000 to $21,000, and their return on investment is 81%. Midscale kitchen remodels cost about $75,000, and the return on investment is 69%. Major kitchen renovations can cost over $126,000, but the return on investment is 54%.
As with bathroom renovation, you may notice that kitchen upgrades that are less expensive offer the most return on investment than the expensive ones. When you are renovating your kitchen, the aim is to enhance functionality, improve the style, make it look bigger, and improve ventilation.
Bathroom & kitchen renovation projects are the ones you want to target first when looking to enhance the value of your home. Depending on your budget, you can engage in professional upgrades that can improve your home’s value.