Whether you plan to sell your home in six months or further down the road, remodeling can appeal to today's homeowners — and future buyers.
But some projects are worth a lot more than others when resale time finally comes.
Hannah Klausing, CEO of REP General Contracting, said an updated kitchen, bathroom or basement is a major draw for buyers.
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"In kitchen and bathroom remodeling, you are enriching a space that people use more than any other area of the home," Klausing said.
According to NerdWallet, a bathroom remodel typically costs $6,600 to $18,000, but a high-end remodel can cost as much as $80,000. Bathroom remodels often recoup at least 60% of their costs.
The cost of a kitchen remodel varies by size, floor plan and materials. NerdWallet puts a minor remodel at $28,458, midrange remodel at $82,793, and a major, upscale remodel at $164,104.
It found a minor kitchen remodel can recoup its full cost while a major midrange remodel, with custom cabinets and new appliances, may only recoup about 50% of the money homeowners put in.
Watch as a contractor shows which projects return the most on your investment:
Alternatives to costly renovations
According to Ace Handyman Services, smaller projects boost home value too, with the biggest return on investment (ROI) coming from the following projects:
- New garage doors (ROI of 268%)
- Standard lawn care (ROI of 217%)
- Replacing the entry door (ROI of 216%)
- Sanding and refinishing hardwood floors (ROI of 147%)
- Installing new hardwood floors (ROI of 118%)
- Replacing siding (ROI of 114%)
- Painting the interior (ROI of 107%)
- Landscape maintenance (ROI of 104%)
When it comes to home efficiency, smart-home upgrades offer a return on investment of 87%.
For windows, vinyl windows offer stronger returns than wood models, with ROIs of 76% and 70%, respectively.
Instead of a major gut job, Klausing said trendy, practical updates can boost value at a lower cost — like simple cabinet upgrades.
"Consider painting them or replacing the hardware. You can always upgrade to soft close, drawer glides," Klausing said.
Fun projects with smaller return
Not every project pays off at resale.
While desirable to many homeowners, Klausing said a home office, hot tub or pool may not add much value when it comes time to sell.
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"Putting a pool in your back yard because you would like your children to have a pool doesn't necessarily mean it would appeal to a future buyer," Klausing said.
Ace Handyman Services finds that a closet remodel, for example, has an ROI of only 55-60%. Landscape lighting has an ROI of 59% while adding an outdoor fire feature offers an ROI of 56%.
Homeowner McKenzie Hafer keeps practicality top of mind when weighing renovations.
"The flooring — that's important with three kids and a dog," she said.
It all comes down to wants versus needs — and whether that renovation will pay off in the end, so you don’t waste your money.
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