Every year, Americans spend $400 billion on renovation and renovation services. And while homeowners may redesign, rebuild or find interior design solutions for a variety of reasons, some home renovations make for a better investment than others. Researchers analyzed 12 of the most common interior renovation projects and found out which ones are likely to bring more value to a home.
New wooden floors.
Should I replace the floor with a new parquet? Yes! Generally speaking, adding wood flooring can be a crucial feature as buyers expect wood flooring. In fact new wood flooring is the best interior renovation project to add resale value to a home. Realtors estimate that homeowners can recoup 106 percent of their original cost.
Repair of hardwood floors.
Restoring hardwood floors can restore them to their original beauty, but how much does it increase the resale value of a home? According to the report, homeowners will get back dollar for dollar they invested in wood floor repairs. For example, if the flooring costs $2,600 to repair, the homeowner can expect 100 percent resale cost recovery. Next, check out tool updates that make life easier for pros.
Converting a basement into a living space.
Many homeowners wonder if the cost of finishing a basement is an added benefit. The answer is yes. A finished basement not only adds extra square feet of living space, it also boosts resale value and helps homeowners recoup 64 percent of the project’s estimated cost when it’s time to sell it.
Complete kitchen renovation.
In most cases, homeowners can look forward to a complete kitchen renovation to add value to their home. In fact, a recent training from Realtor.com shows that 80 percent of those surveyed said their kitchen is the most important space in their home. Homeowners can recover up to 59 percent of the (potentially huge) renovation costs.
Bathroom renovation.
Bathroom renovations stand next to kitchen upgrades as a way to add resale value to a home. For example, if a homeowner spends $35,000 to renovate a bathroom, 57 percent or $20,000 of the total renovation costs can be recovered upon sale. These are the top five reasons people pull the trigger when renovating bathrooms (and what that means for professionals).
Converting the attic into a residential area.
While converting an attic to living space may have a higher upfront price than usual, renovation costs can end up being an investment that adds value to your home. According to the study, homeowners can recover up to 56 percent of remodeling costs on resale. It is useful to know the pros and cons of types of attic insulation.
Kitchen renovation.
A kitchen remodels (as opposed to a full kitchen remodel) is still a solid investment that homeowners can make in their homes. Whether it’s upgrading appliances, replacing a sink, or replacing old cabinets, homeowners can expect to get 52 percent of their interior renovation costs back.
New master/owner suite.
Upgrading a master suite can give homeowners the personal oasis they love to come home to while adding value to their home at the same time. Realtors estimate that homeowners can get 50 percent of their money back on resale. For example, if the project cost is $150,000, the estimated recoverable cost is $75,000.
Add a new bathroom.
How much does adding a bathroom add value to a home? According to the 2019 Remodeling Impact Report, homeowners can recoup nearly 50 percent of their remodeling costs on resale. Bathrooms are a selling point, and adding another one is a good way for homeowners to add value to their homes.
Cabinet repair.
Adequate storage and spacious restrooms are important for homebuyers. However, the report shows that this popular add-on cannot increase the resale value of a home as much as other home renovations. Homeowners can expect to get back about 40 percent of what they spent on toilet upgrades.
