Top 5 Home Renovation Projects to Increase Property Value

It’s always a great time to invest in your property. Whether selling your home is on the horizon or within your 10-year plan, remodeling can enhance your home’s appearance, functionality, and overall value. These projects can also be beneficial when refinancing your home. But the truth is not all renovation projects boost your home’s value. 

Do Home Renovations Increase Property Value?

Yes…and no. Well-executed home remodeling projects can significantly increase property value and offer a higher return on investment (ROI). However, others may only provide a slight increase in value. In some rare cases, property value can decrease. These home renovation projects add little to no value if home buyers perceive changes as being over-personalized, outdated, or misaligned with the style of other neighborhood homes. If you’re making renovations to improve property value, it’s essential to consider your needs and those of future buyers.

Home Improvement Projects that Increase Home Value

Successful home remodels offer homeowners and prospective buyers a universally appealing look and optimal functionality. But which remodeling projects are most valuable? Here are five home renovation projects to put at the top of your to-do list.

1. Kitchen Remodels

Kitchen remodeling projects are valuable in more ways than one. An updated kitchen enhances your home’s aesthetics and everyday life, from cooking to entertaining with friends and family. But it’s also one of the best ways to attract prospective homebuyers. Buyers today are looking for modern kitchens with updated features—floors, countertops, appliances, etc. This makes kitchen remodels highly beneficial for home renovation projects to improve property value and appeal.

Do all home renovations increase property value? No, which is why It’s essential to be selective with your remodel. Investing in highly specific or over-engineered features risks alienating future buyers. Luxury upgrades are often neighborhood-specific; some prospective buyers may not be willing to pay extra for features like professional-grade appliances. Work with your kitchen remodeling company to create a plan that appealingly improves functionality and aesthetics for your family and buyers. Mid-range kitchen projects to increase home value include:

• New flooring
• Countertops and adding an island 
• Adding plumbing fixtures
• Replacing old light fixtures with modern, more energy-efficient lighting
• adding some decoration lighting like a pendant or sconce light or under cabinet light
• Repainting the walls
• Creating a backsplash from the same kitchen countertop material
• Adding a ledge for decoration and storing kitchen essentials
• Hiding your counter appliances like a blender in an appliance garage cabinet
• Additional appliance features include a built-in coffee maker, wine fridge, and built-in drawer for a microwave.
• A hidden pantry with doors matching the kitchen cabinet doors
• Pocket doors to hide or open to see the bar or coffee area
• Add a bar area with a secondary sink
• Add aesthetic features like a custom plaster hood cover or stone island waterfall.
• Create an open floor plan by removing walls between the kitchen, dining, or living room.

2. Home Addition

Additions are home renovation projects that always add value. Size matters! Maximize your home’s square footage by expanding your living room, adding a new bedroom, adding another bathroom, or adding another addition. Not all home additions are created equal. Choosing home improvement projects that increase home value the most and add more livability is best. Examples include bedroom additions, bathroom additions, and conventional home additions.

Bedroom Addition

Improving property value is a given with a bedroom addition. Does your home have two bedrooms? While that provides ample space, most buyers search for homes with at least three bedrooms. 3+ bedrooms offer the necessary space for growing families and the opportunity to have a guest room if desired. These home renovation projects should have a closet area and egress windows to be up to code.

Conventional Home Addition

Building a multi-room structure is a great option for homeowners with abundant existing property around their homes. They add substantial square footage to create a completely new living space that’s optimized for functionality and refinement. These projects vary and could include any type of room, like bedrooms, dining rooms, family rooms, and bathrooms.

If you’re looking for projects to increase home value, you may want to opt for other home additions, such as a bedroom addition. Conventional additions are considered significant home renovation projects. Like new constructions, they’re subject to extensive foundation and framing work that depends on the existing layout of the house and the new proposed layout of the house. This kind of addition can demo/damage a lot of the existing areas of the house in order to do all the necessary foundation and framing work to create the new layout and due to that it can also add an additional cost like kitchen remodels and bathroom remodels. As a result, it’s recommended to combine it in a project that includes an outdated kitchen or bathroom or just design and plan around it. But don’t let those requirements dissuade you from a conventional home addition. Partnering with a professional home remodeling contractor can help ease the process; they’ll handle the necessary permits and construction for you.

Second Floor Addition

While adding a second story to your home is a major undertaking, this home renovation project can considerably increase your property value. The primary reason is its ability to significantly increase the living space of a home, providing room for extra bedrooms and bathrooms. You could even move bedrooms to this new floor to create more space for a larger first-floor kitchen or living room.

Second floor additions usually require substantial framing and foundation work. The existing foundation and framing of the house also must be reinforced before even framing the second floor, since the foundation is only built to support the existing one-story home. The complexity of these projects demands expert planning and execution. It’s highly recommended to work with contractors that can provide comprehensive consultation, customized design, and high-quality construction.

3. Bathroom Remodels

Bathroom remodels are similar to kitchen remodels in terms of improving property value. It’s no wonder, considering that they’re the two most frequented rooms in the home! These home renovation projects can also provide a great return on investment if you sell your home. 

Potential buyers are drawn to updated bathrooms with a modern appearance and functionality. Like kitchen renovations, you should be selective with your bathroom remodeling services. High-value projects are more consequential than high-cost projects. Even can be completed to increase home value if they provide value.

Do one or more of these home renovations to increase property value:

• Replacing/updating plumbing fixtures (like tubs and toilets and shower fixture)
• Updating vanity lights and other bathroom lighting
• Retiling or repainting the walls
• Replacing the vanity and countertop with nicer design and fanculity 
• Adding organizational features like cabinets
• Converting tub to a walking shower 
• Create a curbless walking shower
• Built a wet room where you can hop from the tub to shower and vice versa
• Add steam to your shower
• Create shampoo niches in the wall and bench/ledge for sitting or shaving

4. Accessory Dwelling Units 

Other home improvement projects that increase property value are detached, attached, and garage-conversion accessory dwelling units. They can add thousands of dollars to your appraised home value. But remember that the exact amount depends on various factors, including the size, type, and location. Build quality and features also influence property value, so work with a contractor emphasizing home renovation projects with high-quality craftsmanship.

ADUs are also highly versatile! They can be used as a rental unit, office, in-law suite, or for another purpose. Let’s see how they differ in terms of property value.

New Construction ADUs

New construction ADUs offer a blank canvas for you to create efficient designs personalized to your lifestyle and needs. Since you’re building a completely new space, you get to keep your garage – a significant bonus for both homeowners and increasing property value. These ADUs can be attached and detached.

Detached ADUs are excellent for improving property value. Detached ADUs are generally more spacious than other types and offer more privacy since they’re separated from the primary residence. And increased space means additional square footage for appraisers to consider when determining property value! 

With attached ADUs; since they’re connected to the existing residence, they offer considerably less privacy than detached ADUs. They also do not increase property value as much as detached ADUs do. This is generally due to specific ADU zoning laws regarding the square footage you can build. Contractors can help ensure any home renovation projects adhere to any local ordinances while still providing an increase in appraised value.

Garage Conversion ADUs

A garage conversion ADU requires the loss of your garage to create a new, permitted living space. They can also be attached or detached, offering some of the same benefits of new construction ADUs. Garage conversion ADUs are home improvement projects that increase property value since you use your existing space. Many homeowners prefer these ADUs for this very reason. They cost less to build and are less of an undertaking than new construction ADUs. 

Do these home renovations increase property value? Yes! Garage conversion ADUs substantially increase value because they add square footage to your home. Expanding your home’s living space with a garage conversion ADU makes it crucial to design a space that adds functionality and an aesthetic that would appeal to potential buyers. 

5. Full Home Renovation Projects

Our final project for improving property value is complete home remodeling. While certainly more comprehensive, you’ll be amazed at how much updated bathrooms, kitchens, bedrooms, and living spaces can enhance your everyday life and property value. Other home improvements to consider during your remodel include:

• Updating the interior design style that aligns with current trends
• Modern fixtures
• New flooring
• Repainting the walls (neutral colors increase value more than bold hues)
• Updating the lighting fixtures
• Improving the energy efficiency (such as extra insulation,  different windows, or energy-efficient lighting)
• Replacing the cabinetry and appliances
• Changing the layout of the house to maximize the potential of existing sq. ft. (e.g. removing walls to create a bigger kitchen)
• Replacing the fireplace finish. 
• Changing the interior doors and door casing and trims 
• Adding a bathroom or laundry room within the existing sq. ft. of the house.

The home improvement projects that increase property value can vary depending on your home’s location and neighborhood. Current real estate market trends and the quality of work and materials also contribute to increases in property value.

If improving property value is a major concern for your full home renovation project, you may want to avoid bold colors, highly personal customizations, and features that require ongoing maintenance. These alterations deter prospective buyers, consequently decreasing property value. The most important thing to remember is that it’s not just about making improvements—it’s about making valuable improvements.

Investing in Home Renovation Projects

Do home renovations increase property value? Absolutely! Large and small projects can be completed to increase home value. But you shouldn’t solely base your renovation on home value. Your focus should be on cultivating a home tailored to your lifestyle. Your needs come first, then the value of your home.

From modern kitchen remodels to complete home renovation projects, Create Construction is your trusted contractor. Call for a free consultation!