Many people wonder which home improvements give the highest return on investment. Adding value to your home is the number one concern for most homeowners. It doesn’t matter if you’re prepping to sell or looking to build long-term equity, knowing the right renos to invest in is important to ensure you get the most out of pocket. Some home improvements cost more than they are worth, while others can increase your home’s value. Looking to increase your home’s property value? Here are five of the best renovations you can do to your home to increase property value.
#1. Income Suites.
No shock here, but it’s true. The single biggest way to increase the value of your home is to build an income suite within the property. Whether it’s your basement, a third floor or loft conversion, or even a coach house style suite in a garage, income suite renovations, when done correctly, will increase your home’s worth and double your investment. The main reason for this is that it covers a portion, or sometimes all of your mortgage payments, and results in your home being cash flow positive (it’s an investment that will actively make you money while you build equity).
Kitchens are the single most important room in the home relating to valuation. The kitchen can make a significant difference in the value of your home. Kitchen remodels are notoriously expensive. When you start throwing around words like “granite,” “stainless steel,” and perhaps the scariest “custom,” But don’t panic. Not only can you do a great kitchen renovation on a realistic budget, but kitchens also give you the biggest return on investment far beyond any other room in the house. To save on cost without compromising construction and desirability, look at options like Ikea cabinets as opposed to custom cabinetry.
The bathroom is the second most important room in the home in terms of valuation. Use a soothing color palette, clean lines, modern materials, and chic finishes. Keep in mind that bathrooms are small and therefore require less material. Consider making a statement with a stand-out tile or funky sink or faucet to set the tone of the space. While you should never compromise bedroom space for a bathroom, try sneaking one in if there is any extra space in the home.
#4. Hardware and Fixtures.
It sounds like a simple little update that doesn’t mean a lot, but replacing or updating relatively inexpensive items like faucets, sinks, toilets and drawer pulls, cabinet hardware, light fixtures, countertops can make a big impact and will result in an immediate increase in your home’s value. This small, but effective upgrade will also revitalize the entire home. A small investment can equal a big return, making the space feel fresh and modern.
Flooring is one of the most important aspects of your house. You will see an immediate rise in property valuation with the installation of hardwood floors. Hardwood looks amazing, is timeless and is incredibly durable. It’s also expensive, so it’s wise to weigh your options before shelling out big bucks for the big impact that hardwood delivers. You can go with traditional hardwood or engineered hardwood, or if hardwood isn’t what you’re looking for (or if it isn’t in the budget) there are plenty of great laminate options available to you as well. For the bathroom, tiles will always be in demand and retain value exceptionally well. Regardless of your choice, a flooring update always brings new life to your space and instantly gives the impression of a renovated and redecorated space.