According to a HomeAdvisor report, home renovations in 2023 cost anywhere between $19,476 and $86,538, with the majority of projects averaging around $51,076. Given these figures, it's crucial to ensure your renovations provide the maximum potential value increase for your property.
Investing strategically in home renovations can provide substantial financial benefits when the time comes to sell or refinance. This article will guide you on how to optimize your home value through well-thought-out renovations and upgrades.
One of the most cost-effective ways to boost your home's value is thorough cleaning and decluttering. As Sherri Berry, a real estate agent at MidSouth Construction, advises, a decluttered home appears larger and more appealing to potential buyers, making this a high ROI project.
Adding space to your home, such as an additional bathroom, bedroom, or even transforming an area into a self-contained living space, can significantly increase your home's appraisal value. Energy efficiency and smart home technology, including Energy Star or Energy Star Most Efficient label products, are also highly appealing to modern buyers, potentially reducing utility costs and providing various environmental benefits.
Solar panels and home insulation are growing trends in home upgrades aimed at energy efficiency. Government programs like the Energy Efficient Home Improvement Credit could also provide eligible homeowners with up to $3,200 in financial benefits.
According to the 2022 Remodeling Impact Report by the National Association of REALTORS (NAR), kitchen and bathroom remodels could provide an estimated cost recovery of 67% and 63%, respectively. Enhancing your home's curb appeal is another value-boosting strategy, as more visually appealing properties tend to sell better.
Incorporating the Internet of Things (IoT) into your home could save you money while boosting security, adding significant value to your property. Choices of smart home devices could include controls for thermostats, water shut off valves, and electrical appliances. Home security enhancements, like cameras and water sensors, could also significantly increase your home's value.
Potentially high-value, low-cost projects include deep cleaning, decluttering, pressure washing, repainting and other DIY home improvements. Planning your renovation when weather and financial circumstances are favorable can also contribute to a successful project outcome. While there's no guarantee of success, strategic planning and execution can undoubtedly increase the odds of home renovation projects boosting your home's appraised value significantly.