Many people who remodel their homes to make it look better for themselves to encounter a welcome and surprising benefit of remodeling: an increased home value. Yes, many remodeling projects are not only addressing maintenance problems for the current occupant but also helps to raise property values if that homeowner ever decides to sell.
When choosing a remodeling project for your home, however, it should be mentioned that not all projects raise the home’s value equally—and some remodeling projects don’t add anything at all to the home’s value. That’s something that consumers should keep in mind if they’re thinking about starting a remodeling project, especially if that project is to help them sell their home.
To help our readers decide which projects they should push to the top of their to-do list, we’ve rated some of the most common household remodeling projects according to how much they raise home values on average.
Before we get started, however, we probably should offer a disclaimer. The following returns that are listed are based upon a nationwide average. Depending on where you live, as well as the housing market, those value increases may differ dramatically. So it’s best to find out what project increases the homes in your area and work from there.
Bathroom Remodeling
The one remodeling project with the highest average rate of return is a minor bathroom remodel. Remodeling the bathroom can have a return as much as 102%. What we mean by that number, is that for every $1 that you spend on remodeling your bathroom, it returns $2.02 to the average return value. If you spend $500 on a new tub, then that should give the homeowner an average return of approximately $1,010.
Of course, not everyone needs or wants to do a massive bathroom remodeling job. Some people want to do something simpler. Fortunately, small projects also raise property values. This means that adding new shower doors or simply re-caulking the bathtub can have a positive effect on the home’s price.
Outdoor Landscaping
Another thing that adds a lot of value to a home is outdoor landscaping. On average, landscaping can add up to 100% to the average return value. And doing simple projects over time can have a dramatic effect. While you might not be able to add all new shrubbery or sod, planting a new garden or adding a tree can really add to the curb appeal of a home when done correctly.
Kitchen Remodeling
Kitchen remodeling projects can also have a positive effect on a home’s value. On average, a kitchen remodel can have an average return of approximately 97%-99%. Some of the more common kitchen remodeling projects include adding new appliances, refacing kitchen cabinets, adding new flooring, and laminating countertops.
Exterior Remodeling
Another common remodeling project that has an impressive average return of approximately 95% is remodeling the exterior of the home. And this can be a project as simple as using the best exterior paint on the outside of the home, to sanding and staining a deck, to adding new siding. However, the homeowner should keep in mind that something as simple as house painting can turn into a big project, especially for older homes. Homes manufactured before the late 1970s might have lead paint that needs to be carefully, and sometimes professionally, removed and that can add extra cost to any exterior painting project.
Converting An Attic Into A Bedroom
This remodeling trick is one that doesn’t even occur to a lot of people, yet it’s an improvement that can have a whopping 92%-93% average return. Converting an attic into a bedroom will increase the value of the home more in some areas than others. For example, in the Midwest, an attic conversion only has an average return of 80%, while on the West Coast, an attic conversion can provide an average return of 100%-106%.
Of course, there are a few things that the homeowner needs to think about before beginning this remodeling project. The homeowner should consider whether their heating/AC system can handle the addition of another room, whether the attic needs to be properly insulated, and whether or not a solar fan has to be added to deal with heat buildup. These can add significant costs to the project and can reduce the average return percentage.
Deck Or Patio Additions
Another exterior remodeling project that can add some return value to a home is the addition of a patio or deck. Although the average return 90% isn’t as high as the average return of other exterior remodeling projects, it can be something that used in conjunction with other exterior improvements to really raise the home’s value.
Let’s say that you add a deck that’s approximately $12,000. Since the average return of this project is 90%, the homeowner can expect that it might raise the value of their home by $10,800. Remember, this is on average, and the final result might be less or more depending on where your home is located and current property values.
Remodeling The Basement
Basement remodels also have an average return rate of approximately 90%. Basement remodeling projects include adding subfloors, adding a basement bar, and finishing walls. And that’s only a small sampling of some of the basement remodeling projects.
As is the case with most remodeling projects, the average return of this project is going to differ from place to place. On the West Coast, basement remodels return approximately 105% to 109% of the cost of the project, while in the Midwest, a basement remodel has an average return of 70%.
It should also be noted those average returns don’t include the cost of fixing any flooding problems that might exist in the basement. However, basement remodels can’t be done without fixing flooding issues, so it’s something that homeowners might just have to do to keep their home’s value from sinking. After all, flooding problems can very damaging to a home’s value.
Replacing Windows
An often overlooked remodeling project is adding new windows, and that’s because the average return for windows isn’t as big as it is with other projects. On average, new windows have an average resale return of 89%. Consumers who live in big cities have the highest average return, while people who live in hot desert climates have the least amount of average return. For example, people who live in cities such as Chicago, New York, or Boston often have an average return of more than 105%, while people living in Las Vegas might only see a 60%-62% average return.
