The Best Home Renovations for the Highest ROI
Aug 18, 2022

If you’re thinking about renovating your home, you want to make sure you choose projects that will offer the best return on investment. In other words, you want to make sure you’re getting the most bang for your buck! So, which renovations offer the highest ROI? We’ll look at some of the most popular ones in this blog post. Keep reading to learn more!

On average, home renovations provide a 70% ROI. But it also depends on the project you undertake since not all areas have the same impact, for example, a bedroom compared to the kitchen or bathrooms.

What is certain is those home renovations are one of the investments that can improve the quality of life in your living space and increase the value of your home in the future.

The home improvements with the best return on investment are projects that add functional space and square footage. Examples include basement finishes, additional projects that add bedrooms/baths, and new kitchens.

Home improvements that do NOT add value are luxury upgrades, cosmetic upgrades, or unusual projects for your homes in your neighborhood.

A real estate agent can guide what buyers in your area are looking for; that’s even better! You can make sure you’re choosing home improvement projects that will offer a great ROI and be appealing to potential buyers down the line.

What is the ROI of a home renovation?

First of all, you must know that the ROI of a home renovation depends on several factors:

  • Real-estate market
  • Location
  • Project Type
  • Synchronization

But don’t be overconfident; most home improvements won’t give you a 100% return on investment. While TV, Youtube, or IG shows about real estate and property may make it seem like renovations are a great way to make money, that’s not the reality for most home remodels.

We share the rule of thumb with homeowners that you can expect a 70% ROI, on average and at most.

If you’re looking for a way to invest your money and make a nice profit, any financial expert worth his salt won’t recommend rolling over as the way to go.

ROI is such an essential factor in home renovations because remodeling is the only investment method where you get two forms of value: You can get much better ROI and quality of life with a new space in your home.

For example, when you buy a car and get it repaired, you spend money on an asset that depreciates. You’re putting money in your vehicle, and you won’t get a single dollar back.

When you buy and renovate a home, you’re putting work into an asset that appreciates, and some of that money is likely to stay with you! But there are still better ways to invest if that’s your number one priority.

What home improvements give the best return on investment?

As real estate agents, we advise you that you can focus on this type of improvement if you are thinking of selling your house and expect to make the most of the transaction.

The “type of project” is one of the most critical factors in determining the ROI of your renovation. While obviously the other factors like time, market, and location will also make a difference, some common projects generally provide a better return on investment than others.

These are the projects that will give you the best results:

  1. Remodeling of kitchens and bathrooms
  2. Basement Finishes
  3. Improve the curb appeal
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