What Home Improvements Increase Property Value?

Home improvements that can increase property value.

Few home improvements can raise sale value by their full cost, but most improve saleability and livability. Homeowners who know that moving may be in their future, will want to choose improvements that will have the greatest return on investment when they sell their houses. There are several areas within the home that can be improved while offering good returns.

Kitchen Remodel

The area that families tend to spend the most time in, the kitchen, can be remodeled with a good return on investment. Kitchen remodeling will normally yield a return on investment of around 80 to 90 percent, as compared to the cost, which can often be above the range of $15,000. Kitchen remodeling normally includes things such as tiling, cabinet, and appliance updates.

Bathroom Remodel

Bathroom remodels also tend to have a very high return on investment, normally coming in at 85 to 90 percent return on investment when selling the home. Costs are normally slightly less than kitchens--depending upon which modification is done--usually starting with costs of around $10,000. Adding a new bathroom is a very popular renovation in homes that have only one bathroom to start. Other remodeling ideas include double sinks, upgraded tubs, or showers.

Wood Deck

Decking can be an extremely valuable home improvement, as well as being aesthetically appealing in many cases. Unlike other improvements that are in existing home areas, wood decks add space to the exterior of the home. Wood deck additions have an average cost of just over $10,000 and an average return on investment of 85 percent.

Bedrooms

Bedrooms offer multiple options when it comes to home improvements. Some homeowners choose to re-model current bedrooms, which cost home owners on average $40 to $60 thousand dollars. They have a high return on investment of around 75 percent. Building an additional bedroom is also beneficial for houses that contain fewer rooms, although the return on investment is slightly lower, averaging between 60 to 70 percent return on investment.

Garage

For homes that do not have a garage, this can be a beneficial home addition. It can increase the resale value by an estimated $37,000, while averaging an install cost of $53,000. This gives it a return on investment of almost 70 percent.

References

• Quicken Loans: Home Improvements Increase Home Value
• Desmesne: ROI for Home Improvements