Your home represents one of your most significant investments, and maintaining your home is necessary no matter if you live there, rent it out, or are getting it ready for sale. Carefully planned home improvements can lead to a more enjoyable living space and improve your property’s long-term market value.
For homeowners and working resident property management, making thoughtful upgrades can help find better tenants, increase rent, and ensure your property remains viable in the rental space. Let us walk you through how home improvements can affect property value overall, and which upgrades provide the highest ROI.
1. Boosting Curb Appeal
When it comes to real estate, first impressions are important. When prospective buyers pull up to your house, the exterior is the first thing they see. A new coat of paint, a clean driveway, a well-manicured lawn, and a welcoming front door are simple ways to enhance your home’s curb appeal, and can all help.
Even small upgrades such as new house numbers, outdoor lighting, and nicely maintained landscaping could lead to your home feeling more crisp and modern. Real estate experts say curb appeal increases value in the range of 5–10%, and can help sell a home faster.
2. Upgrading the Kitchen
Often referred to as the “heart of the home,” the kitchen is rightly considered the centerpiece for buyers. They are usually looking for modern, functional kitchens to entice them into making a purchase. You don’t need to completely remodel your kitchen to see an impact. Small upgrades, such as new cabinet hardware, countertops, lighting, or energy efficient appliances can be huge changes.
For larger budgets, think about replacement of bad cabinets, or adding a kitchen island for additional work surface. A well-planned kitchen renovation can recoup 60–80% of the cost of the remodel, depending on the scope of the remodel.
3. Updating Bathrooms
Bathrooms are also a major consideration for prospective buyers as evidence of a small amount of upkeep — old tiles, leaky faucets, and outdated fixtures — can make a home appear unloved. A few simple touches — new vanity mirrors, faucets, or tile regrouting — can really breathe new life into any space.
If you want to add even more value, new walk-in showers, dual sinks, and energy-efficient fixtures can make a big difference in how people perceive your property while also enhancing your life and daily-life enjoyment. On average, a midrange bathroom remodel has a 70% ROI.
4. Adding More Usable Space
Generally, more space is worth more. If your property has an unfinished basement, attic, or garage, you might want to improve that space into usable living space. A home office, sleeping space for guests, or entertainment room — whatever you can imagine — adds to the livable square footage of your home and is taken into account when valuing your property.
Open floor plans are also desirable in contemporary living spaces. And if you can, removing non-load-bearing walls to achieve a more spacious and open atmosphere can make your home feel bigger and closer without the need for an addition.
5. Enhancing Energy Efficiency
Today’s homebuyers consider energy efficiency as a top priority, whether for environmental reasons or to lower utility costs. If you’re thinking of updating your home to improve its efficiency, installing energy-efficient windows, adding insulation, or giving your home a smart thermostat are good places to start to enhance the comfort of your home and reduce the utility bills.
Lastly, energy-efficient improvements can come with tax credits or rebates, and that makes them even more attractive. In addition to the real value of an energy-efficient home, future buyers see value when they see someone’s maintained an investment and future-proofed his/her home.
6. Modernizing Flooring and Lighting
The flooring and lighting in a home contribute significantly to the overall feel and flow of the property. Outdated carpeting and/or dim lighting can make even the largest space feel uninviting. Upgrading to hardwood or luxury vinyl flooring can give your home a renewed, modern style that excites buyers.
In the same vein, replacing existing lighting with efficient lighting, recessed lighting, or statement pendants, can brighten up your space and accentuate the best features of your home. These aesthetic upgrades are relatively inexpensive and can have a great positive impact on the appearance and value of your home.
7. Outdoor Living Enhancements
In recent years outdoor spaces have been more valued than ever before. A well-designed patio or deck, or even a kitchen outdoors, adds additional livable space that serves buyers who enjoy entertaining or relaxing outdoors.
Even small additions like a pergola, built-in seating, or a fire pit can make your backyard more usable and enjoyable. Industry information suggests outdoor improvements can provide an ROI of 50–80%, depending on the type of project.
8. Regular Maintenance Matters
While major renovations will often get noticed or talked about, it’s the ongoing maintenance that will maintain the value of your property. For example, making sure leaks are fixed or that HVAC systems are maintained and serviced, painted walls, and roofs remain in good shape all maintain the value, while also eliminating costly repairs or replacements down the road.
Particularly when purchasing or selling rental property, the need for ongoing maintenance is critical. Buyers and tenants alike are attracted to properties that feel move-in ready. That’s why Resident Property Management emphasizes and practices maintenance to keep properties in peak shape, as this helps maximize rental yield and makes for an easier sale when it’s time to list the property.
Final Thoughts
When it comes to home improvements, it’s not just all about aesthetics — they are also strategic investments in your home’s value and appeal. When making changes to your home, even for your own enjoyment, focus on improvements that improve your comfort while still benefitting your long-term return on investment (ROI).
From enhancing curb appeal to updating areas where we spend our time like the kitchen and bathroom areas, or even incorporating energy efficiency upgrades, each project adds value to a home that is beautiful and worth even more.
So, before you start your next renovation, consider which home improvements will offer the highest return and enjoy the peace of mind that you are creating value in your largest investment – your home.