Home improvement projects in the US can reach more than $400 billion this 2022. But this number can still grow despite the rising annual inflation rates.
In recent years, real estate values and homebuyers are always high. Because of that, home renovations are essential to get a higher return on investment.
But how can we increase our home value estimate? Keep on reading to know the five best home improvement projects we can do.
1. Kitchen and Bathroom Remodeling
One of the best home projects we can do is remodel our kitchens and bathrooms. Unlike other areas, room remodels can recover over half of our investments.
Kitchen upgrades can be major or minor. Depending on our planned projects, a kitchen renovation has a higher ROI.
Homeowners often do minor renovations to keep the kitchen space functional. It doesn’t go over the budget and ensures the room is still a relevant part of the property. Here are some minor remodeling projects we can do in our kitchens.
- New kitchen backsplash
- Cabinet refinishing
- Light fixture updates
- Island installation
- Adding storage space
- Faucet upgrades
Major kitchen renovations often happen in older homes with outdated designs. Here are some of them.
- New cabinets and countertops
- Wood, laminate, or tile flooring installation
- Room expansion
- Appliance upgrades
Mismatched styles are big turn-offs for many potential buyers. For them to stay interested, major kitchen renovations are a must.
When it comes to bathroom upgrades, remodeling the entire thing is the best way. Look into changing the flooring, vanity, tub, shower, and toilet. Aside from that, we can also add more storage space and repaint the walls and shelves.
Some homebuyers also prefer homes with several bathrooms. The half-bath space on the main floor offers more convenience to owners and guests.
2. Home Offices
Did you know that 42% of the US workforce is now working from home? Because of that, houses with offices are becoming more in-demand in the real estate market.
Nowadays, more buyers want home office features instead of move-in-ready houses. They would also prefer this feature over their small square footage requirements. Others are also seeking properties with more than one home office space.
Making space for an office at home is one of the best home additions and investments. We can convert an unused walk-in closet into a small office if we have a limited budget.
An ADU construction or extension for our home offices is also a good option. While it has a higher home addition cost, the home value estimate of an ADU can hit up to $60,000.
Turning other untouched spaces into other rooms can make the property more appealing. Apart from offices, we can also add game rooms, guest bedrooms, and even a home gym.
3. Open Layout Renovations
Open layouts have become in-demand for many homebuyers in the past few years. More people need workspaces now, but they still want a nice, spacious area to enjoy time with family. Younger buyers also prefer having large spaces for entertaining guests.
With that in mind, knocking out a wall or two can help create a spacious living area. But keep in mind that the placement is crucial in an open layout.
Most of our potential buyers want an open layout between the kitchen and dining room. Others prefer it between the kitchen and family room.
One of the advantages of an open layout is having more natural light. Apart from making the space look bigger, it also plays a role in the entire home’s interior design. Due to that, it’s better to consult with a contractor or an interior designer about our open layout plans.
These professionals can also help us from going overboard with our project budget. Not to mention, their recommendations can affect our home’s value. A home value estimator also takes professional opinions into account when estimating.
4. Outdoor Living Expansions
Many American households love having a safe outdoor space in their homes. These spaces are also one of the top things in most house-buying checklists. Sellers need to know that outdoor upgrades add higher value to their properties.
There are many outdoor structures we can consider when expanding our backyard. Some common examples are decks and patios. It’s one of the best places to dine, entertain, and work outdoors.
Apart from that, many real estate agents recommend sellers install fire pits. Many families enjoy having outdoor fireplaces for gatherings. They also offer a cozy setup for outdoor dinners on a chilly evening.
Outdoor pools are one of the costlier home improvement projects for our houses. Despite that, our ROI can increase, especially if it comes with an inground hot tub.
Fences are another structure we should consider. Putting up new fences adds more privacy and security. Not to mention, a nice-looking fence adds tour curb appeal.
In recent years, front porches are making their comeback. Some buyers want a space to put cozy seating arrangements for visiting neighbors.
5. Smart and Energy-Efficient Add-Ons
We are now at the height of the digital and technological age. With that, some of our house upgrades should also have high technology. Smart homes are now becoming popular in the real estate market.
Turning our house into a functioning smart home is impractical and costly. But smart upgrades can already make a significant increase to our home value.
For example, installing high-tech lights and thermostats interest prospective buyers. We can also put home security systems and detectors at our doors and kitchens.
Aside from high-tech living, sustainable homes are also trending in the market. Devices that convert renewable energy like solar panels are also gaining in popularity.
We can also do energy-efficient projects like old windows replacements and insulation improvements. These types of home improvement can even qualify our homes for tax credits.
The 5 Best Home Improvement Projects to Raise Our Home’s Value
Home improvement projects are often time-consuming and worth a lot of money. Because of that, few homeowners push through with it. But disregarding these renovations can harm our home’s value over time.
While they can be costly, home additions and improvements are great investments. Aside from value, it also makes our houses easier to sell in the market.
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