Upgrading your home can greatly improve your quality of life and increase the value of your property. However, not all renovations provide the same return on investment.
Given that the Raleigh housing market has been one of the hottest in the nation, with the median selling price of homes standing at $475,000 as of September 2023, it’s important to carefully consider which projects give you the most bang for your buck in this competitive market.
Let’s explore the home improvements that tend to have the highest ROI, helping you make informed decisions about how to get the best value from your remodeling budget.
Along with kitchens, bathrooms are one of the most common renovation projects that add value to a home. The average bathroom remodel costs $11,000 but returns about $18,000 at resale, according to the National Association of Realtors. That’s a 65% ROI.
Given the increasing housing prices in areas like Raleigh, investing in strategic home improvements can be especially lucrative. Some of the best ways to increase your bathroom remodel ROI include:
Some of the best ways to increase your bathroom remodel ROI include:
1. Hire Local Experts
Consulting with professional bathroom remodelers can guide your decisions for the best financial outcomes. Make sure to reach out in your area who can complete your project on time and on budget.
If you’re looking for bathroom remodelers in Raleigh, you can search online or ask for recommendations to find skilled professionals in your area. This will help you get quotes and check out reviews to make the best choice.
2. Update Fixtures
Replacing outdated faucets, showerheads, and lighting fixtures is a relatively inexpensive way to modernize your bathroom. Opt for finishes like brushed nickel, oil-rubbed bronze, or chrome.
3. Install Stone Surfaces
Natural stone countertops and backsplashes like marble, travertine, and granite can make your bathroom look luxurious. Porcelain and ceramic tiles are affordable alternatives.
4. Replace Bathtub with Walk-in Shower
For resale value, consider replacing a standard tub with a spacious, spa-like walk-in shower. These are preferred by many buyers, especially aging baby boomers.
5. Upgrade Storage
Improving storage with drawer organizers, built-in medicine cabinets, and vanities with double sinks can make your bathroom more functional.
When improving bathroom storage, don’t overlook the importance of upgrading your drawer slides. These essential mechanisms allow for smooth opening and closing of drawers, enhancing convenience and functionality. By upgrading, you can transform your bathroom storage into a well-organized space with easy access to your belongings.
6. Improve Ventilation
Proper ventilation improves air quality and prevents mold/mildew growth. Invest in a high-quality exhaust fan.
A kitchen remodel is one of the best investments you can make in your home. Not only does a renovated kitchen provide a more enjoyable cooking and entertaining experience, it can significantly boost your home’s resale value.
When remodeling your kitchen, focus on upgrades that potential buyers find most desirable:
1. Update Cabinets and Countertops
Replacing worn or dated cabinets and countertops makes a huge visual impact. Go for timeless styles and materials like Shaker cabinets, quartz countertops, and subway tile backsplashes. This can modernize your kitchen without dating it to a specific era.
2. Add an Island
Kitchen islands are extremely popular, providing additional counter space and seating. Adding an island is a great way to make your kitchen more functional without increasing the overall footprint.
3. Upgrade Appliances
Invest in high-quality, energy-efficient appliances. Stainless steel fridges, gas ranges, and built-in microwaves will make your kitchen look sleek and modern.
4. Improve Lighting
Proper lighting can make a kitchen much more inviting. Add pendant lights over islands and counters, under-cabinet lighting, and recessed ceiling fixtures.
5. Open Concept Floor Plan
Knocking down walls to open the kitchen to adjacent living spaces helps it feel larger and brighter. Most buyers prefer open-concept kitchens that connect to dining and family rooms.
Turning your garage into a livable space like a bedroom, home office, or apartment can greatly increase the functionality of your home. It’s also an increasingly popular remodel that offers a high ROI. According to Remodeling Magazine’s Cost vs. Value report, converting a garage to living space returns over 80% at resale.
Some things to keep in mind for a garage conversion include:
1. Insulate Properly
Since garages tend to be drafty, it’s important to properly insulate walls, ceilings, and floors during the conversion. This keeps the new space comfortable.
2. Add Plumbing
If converting the space to a bedroom or apartment, you’ll need to run plumbing for a bathroom. This adds to the project cost but also increases functionality.
3. Update HVAC Systems
Be sure your home’s HVAC system can handle the additional load of conditioning the new living space. You may need to upgrade your furnace or add ductwork.
4. Match the Style
Make design choices that match the existing style of your home, like windows, siding, trim, and flooring. This helps the addition blend seamlessly.
5. Meet Code Requirements
There are specific building codes for garage conversions related to electrical, ventilation, fire safety, and emergency exits. Work with experts to meet these.
6. Hire Specialists
While a major undertaking, garage conversions have big payoff potential. Hiring the right design/build team is key to maximizing your ROI.
Master Suite Addition
One of the top renovations for maximizing living space is adding a master suite addition. This typically involves building a new master bedroom, walk-in closet, and bathroom onto an existing home. According to Remodeling Magazine, a master suite addition recoups over 70% of costs on average at resale.
Some tips for maximizing your master suite ROI include:
1. Strategic Design
Work with architects experienced in suite additions. Careful planning is needed to match the new addition to your home’s footprint and style.
2. Optimize Layout
Design your master suite for convenience and spaciousness. Include amenities like large walk-in showers, soaking tubs, dual vanities, and custom closets.
3. Use Quality Materials
Finish the addition with the same level of materials and craftsmanship as your existing home, like high-end flooring, lighting, tile, and cabinetry. Don’t cut corners.
4. Focus on Curb Appeal
The exterior of the addition should complement your home’s landscaping and architectural style. Maintaining great curb appeal ensures maximum resale value.
5. Consider Resale Potential
Will the addition limit or boost your home’s appeal among potential buyers? A ground floor suite is accessible for aging buyers. An upstairs suite may be less desirable.
6. Hire the Right Builders
Having a competent, detail-oriented general contractor oversee your addition project is a must. Verify credentials, experience, and sample work.
By focusing on upgrades like kitchen and bathroom remodeling that appeal to a wide range of buyers, you can maximize your return on investment.
Overall, a garage conversion is one of the more complex yet lucrative remodeling projects. The cost can be $50,000+, but with the right approach, the potential return makes it worth considering.
For homeowners needing more space, a master suite addition is a smart investment. Just be sure to work with qualified professionals to maximize livability and long-term value.