If you’re thinking of remodeling your home anytime soon, it’s best to be informed about where you will see the best ROI for your home improvements.
Minor Kitchen Remodeling ROI
Average national cost: $18,856 Return on investment: 82.7%
Of course any remodeling will add some value to your home, less is more when it comes to getting an ROI on your kitchen. If you have a budget, focus on small areas: Replace outdated appliances with more modern, stainless steel appliances; replace old countertops with better materials that you can afford; replace cabinet hardware (but leave the cabinets alone); and apply a fresh coat of paint and a new backsplash.
Major Kitchen Remodeling ROI
Average national cost: $54,909 Return on investment: 74.2%
Kitchens make a huge impact when it comes time to sell your home. Buyers want them to be modern and functional. The average cost of a major kitchen renovation is quite high. The project includes getting new cabinets, new appliances, flooring, backsplash, paint, countertops, faucets and toe-kicks. You can even add trash grinders, stonework, lighting and so on.
Bathroom Remodeling ROI
Average national cost: $16,128 Return on investment: 72.5%
After the kitchen, an updated and modern bathroom is high on many home buyers’ lists. The average cost of a bathroom renovation includes replacing a tub, shower head, toilet, sink, vanity, mirror, as well as floor and wall tiles. But you don’t have to do all that to boost your home’s value. Most times you can keep the tub and toilet.
Finished Basement ROI
Average national cost: $62,834 Return on investment: 77.6%
Many home listings say if they have a “finished basement” because it’s simply an attractive feature. To get the full value out of your remodel, you want the basement to provide space for entertaining your family or guests. It should be big enough to be a truly useful space. The average cost of a basement remodel includes adding a bathroom with a glass shower, a 20x30 foot entertaining area with a wet bar, insulated walls and laminate flooring. However, keep in mind that below-grade rooms like basements don’t add as much value as above-grade rooms, like an attic conversion.
Attic Conversion ROI
Average national cost: $49,438 Return on investment: 84.3%
Converting an attic over into a nice, livable space adds value in two ways: It adds square footage and a bedroom without changing the footprint of the home. By adding that extra space, specifically a bedroom, you've put your home into a new housing category and that’s guaranteed added value.
Second-story Addition ROI
Average national cost: $155,365 Return on investment: 71.8%
This one's a no-brainer, right? Guess again. Adding on space - specifically a family room, bedroom and a bathroom - will always add value to your house, but it’s hard to completely recoup such a high cost. However, when adding onto a house, you’re probably thinking more about creating more space for yourself than the next owner, which may be worth it to many people.
Patio/Deck ROI
Average national cost: $9,539 for wood, $15,437 for composite Return on investment: 87.4% for wood, 74.3% for composite
Outdoor living and entertainment areas are becoming more popular, and that means buyers are willing to shell out more money for homes that have these outdoor spaces. While wood decks add more value and cost less, they typically come with more maintenance costs (like staining) over time to maintain the wood.