Maximizing Your Home's Value: What Upgrades and Renovations That Matter

With the surge of popular DIY and fixer-upper shows on HGTV and other networks, many homeowners are taking on home improvement projects to add value to their homes. However, it's important to recognize that not all upgrades and renovations will have a significant impact on your home's value. In fact, some projects may even end up costing you more than they add in value.

It's essential to understand which upgrades and renovations are worth investing in and which ones aren't. In this blog post, we'll discuss which upgrades and renovations add value to your home and which ones don't, providing you with the information you need to make informed decisions about your home improvement projects. I will be speaking in general but before starting any project, it's crucial to research the current market trends in your area and consult with a professional real estate agent to understand which upgrades will have the most significant impact on your home's value. This can help you avoid wasting time, money, and effort on projects that won't provide a return on investment.

Kitchen

A beautiful and functional kitchen is always a big hit with homebuyers! Did you know that the kitchen is one of the first rooms people check out when viewing homes? If you're thinking about making updates to your kitchen, it's important to choose the right type and extent of upgrades to add value to your home. For example, a minor kitchen remodel that includes updating appliances, painting or refacing cabinets, replacing countertops, or installing new flooring can often recoup a large portion of its cost when you sell your home. On the other hand, a major kitchen renovation that involves completely gutting the space and starting from scratch can be much more expensive and may not always offer a high return on investment. It's also worth considering the market and the area where your home is located. If you live in a high-end neighborhood where homebuyers are looking for luxury finishes and high-end appliances, then a high-end kitchen renovation may be a worthwhile investment. However, if you live in a more modest neighborhood, it may not make sense to invest a lot of money into your kitchen renovation, don’t get marble countertops expecting to recoup that cost in that type of neighborhood as you may not recoup the full cost when you sell your home.

Bathroom

Another area homebuyers admire is the bathroom. Making updates to fixtures, adding new lighting, re-grouting or replacing tiles, and giving a fresh touch to the paint or wallpaper can often result in a considerable return on investment. If you're considering a major bathroom renovation, such as expanding the space or adding a new bathroom, you'll want to weigh the potential return on investment against the cost of the renovation. A major bathroom renovation can be expensive, and in some cases, you may not get a return on your investment. However, if you live in an area where homes with multiple bathrooms or luxury finishes are in high demand, a major bathroom renovation could be a worthwhile investment.

Wood Flooring

Let’s talk wood flooring. Wood floors are popular these days. More and more people are moving away from having carpet in the living areas. According to a survey conducted by the National Wood Flooring Association, 99% of real estate agents surveyed agree that homes with hardwood flooring are easier to sell, with 90% stating that they sell faster and for higher prices than homes without hardwood flooring. The survey also found that 80% of homeowners believe that wood flooring adds value to their homes, and 82% believe that it makes their homes easier to sell. Wood flooring is a highly sought-after feature among many home buyers. In general, wood flooring is considered to be more durable and attractive than many other types of flooring, and it can lend a feeling of warmth and luxury to a home. Although, like with any home improvement, the value that wood flooring adds to your home can vary depending on a number of factors, such as the quality of the flooring and the current market conditions in your area. It's important to note that other factors, such as the style and finish of the wood flooring, can also influence how much value it adds to your home.

Pergola

A well-built and well-maintained pergola can enhance the outdoor living space of a home and potentially increase its overall appeal to buyers, but it won’t necessary add value to your home. A pergola can add aesthetic appeal to a home's outdoor space, provide shade and privacy, and enhance the functionality of an outdoor living area. Nevertheless, it is important to note that not all buyers may view a pergola as a desirable feature, and its value may be more difficult to quantify than other upgrades.

Garage

Some buyers may prefer having a garage, while others may prefer additional living space. Additionally, closing in a garage without obtaining the proper permits and approvals can decrease the value of a home, so it's important to follow proper procedures.

Cabinets

Painting your cabinets, a quirky color may not necessarily bring value to your home. While it can be a unique and personalized touch that sets your home apart from others, it may also be a turn-off to potential buyers who prefer a more neutral and timeless style. When it comes to adding value to your home, it's important to focus on upgrades and renovations that are universally appealing and will stand the test of time.

Pool

According to some real estate experts, adding a pool to a home in the South does not always guarantee an increase in value. This is because maintaining a pool can be expensive and time-consuming, and some buyers may not want to take on that responsibility. Additionally, some buyers may prefer larger yards or other amenities instead of a pool. Also be aware that your homeowner’s insurance will reflect a pool and you may pay more.

Remember to research the current market trends in your area and consult with a professional real estate agent to understand which upgrades will have the most significant impact on your home's value.