Home Remodels That Yield The Highest ROI
For homeowners looking to increase the value of their property, strategic home remodels and renovations can be an excellent investment. However, not all remodeling projects are created equal in terms of their potential return on investment (ROI). To help homeowners make informed decisions, A43 Design will explore the home remodels that typically offer the highest value increase, based on research and industry expertise.
Kitchen Renovation:
The kitchen is often considered the heart of a home, and a well-executed kitchen renovation can significantly boost its value. Upgrading countertops, cabinets, appliances, and fixtures can transform the space, making it more functional and visually appealing. According to Remodeling Magazine's 2021 Cost vs. Value report, a minor kitchen remodel can recoup approximately 72% to 81% of its cost upon resale, while a major kitchen remodel can recoup around 61% to 72% of the investment.
Source: Remodeling Magazine's 2021 Cost vs. Value Report: https://www.remodeling.hw.net/cost-vs-value/2021/
2. Bathroom Remodel:
Similar to the kitchen, a bathroom remodel has the potential to provide a high return on investment. Upgrading fixtures, installing new tile, improving lighting, and enhancing storage space can greatly increase a home's value. According to the National Association of Realtors (NAR), a mid-range bathroom remodel recoups an average of 62% of its cost, while an upscale bathroom remodel recoups around 56%.
Sources: National Association of Realtors' Remodeling Impact Report: https://www.nar.realtor/sites/default/files/documents/2019-remodeling-impact-10-03-2019.pdf
3. Outdoor Enhancements
Enhancing the outdoor space of a home can significantly boost its curb appeal and overall value, especially in Teton County. Adding a deck, patio, or outdoor living area can extend the usable square footage of the property and create a desirable entertainment space. According to Remodeling Magazine, a wood deck addition typically recoups around 72% to 83% of its cost upon resale, while a composite deck addition recoups approximately 63% to 72%.
Sources: Remodeling Magazine's 2021 Cost vs. Value Report: https://www.remodeling.hw.net/cost-vs-value/2021/
4. Energy-Efficient Upgrades:
In today's environmentally conscious world, energy-efficient upgrades are highly valued by potential buyers. Installing energy-efficient windows, upgrading insulation, and replacing outdated HVAC systems can not only lower utility bills but also increase a home's value. A study by the U.S. Department of Energy suggests that energy-efficient upgrades can recoup 80% or more of their initial cost.
Sources: U.S. Department of Energy: Energy Saver Guide - Tips on Saving Money and Energy at Home: https://www.energy.gov/sites/default/files/2020-02/Energy_Saver_Guide-2020-en.pdf
While home remodels can be a smart investment, it's crucial to prioritize projects that offer the highest return on investment. Kitchen renovations, bathroom remodels, outdoor enhancements, and energy-efficient upgrades consistently rank among the top remodeling projects in terms of value increase. It’s also essential to consider factors such as location, market conditions, and individual preferences when deciding which remodels to undertake. Consulting A43 Architecture, as well as trusted real estate professionals and contractors, can provide valuable insights tailored to specific properties in and around Jackson Hole. By making informed decisions, homeowners can maximize their investment and enjoy an enhanced living space while increasing their home's overall value. Give us a call today: 307-249-8650.
*Note: Please keep in mind that real estate market conditions can vary, and the ROI percentages provided are based on historical data and should be used as general guidelines. It's always recommended to research and consult with professionals before embarking on any significant remodeling projects.