Homeowners often want to know what will give them the biggest bang for their buck in terms of home renovations and improvement projects. We recently asked our appraisal community, “Which renovations generate the highest ROI in your market?” Most real estate appraisers agree that kitchen renovations provide the best return on investment.
Keep reading for the full survey results, plus some additional words of advice regarding home renovations.
Which renovations generate the highest ROI in your market?
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Kitchen remodels (70%)
“Kitchen remodels definitely provide the highest ROI!”
“Kitchens are so visible that they have immediate impact on buyers.”
“Kitchens are a focal point in most homes, and remodeling them is recommended if they seem outdated or obsolete.”
“Buyers will spend lots more for a home with upgraded stainless steel appliances, granite countertops, and wood floors in a newer kitchen remodel! Homes with dated kitchens are hard to sell in the Midwest.”
“Kitchens are the rage in Kansas City. Kitchens return nearly dollar for dollar.”
Bathroom remodels (9%)
“It seems that if a bathroom or kitchen has been updated, the house sells faster. Those are the two most expensive rooms in a house to remodel.”
“An average bathroom remodel will cost between $12,000 and $15,000, and there is an estimated 25% to 30% increase noted in market value.”
Basement remodels (7%)
“It all depends is the real answer. I just advised my daughter and son-in-law though that an inexpensive finish of their basement would give them the biggest bang for their buck in their market with their current improvements.”
Home additions (3.5%)
“A second bathroom in a 3 or 4 bedroom single family home yields a high ROI.”
Energy efficient improvements (3.5%)
“All of the other choices are something that a new homeowner could do himself…in today’s market where new home buyers would look for a house that says I Am Energy Efficient, [these types of improvements] could save people a lot of time and money looking for other houses….”
Landscaping could be a simple, inexpensive way for homeowners to improve the exterior look of their home and make it more appealing to buyers.
Other home renovations that deliver high returns
“Other” home renovations that appraisers reported as having the highest ROI in their particular market include:
- De-cluttering/cleaning and cosmetic improvements
New construction of 3rd and/or 4th units on duplex properties (where zoning and lot size allow)
- Interior remodels in general
“I reside in an old town with old houses; people are willing to pay more for homes with remodeled, modern interior.”
Additional words of advice from appraisers
“Most older homes are renovated now before they are sold, so buyers have come to expect that. Real estate brokers in this area are offering no interest loans to renovate homes, to be paid back at closing, if allowed to list the property after renovation.”
“In the remodeled houses, most of the people who buy houses like the tops of kitchen and bathroom cabinets in granite or quartz. In special cases, marble tops. In ceiling, crown molding and tray ceiling among many others.”
“Both kitchen and bath remodels seem to receive the greatest attention. However, no matter how much is spent, there is never a 100% return. Don’t believe your contractor. He may be the best in town, but in all my years I’ve never seen a full return on investment. It does definitely improve marketability.”
What types of home renovations yield the highest ROI in your local real estate market? Join the conversation on Facebook or Twitter. Plus, sign up for our newsletter to get a new survey question in your inbox each month.