Whether you repaint a room, plant some flowers in the backyard or tackle a much bigger update (like a new kitchen or bathroom), home renovations can make you fall in love with your home again—or maximize your profits if you choose to sell.
If you don't have the money to do everything on your home improvement wish list all at once, don't worry. You can start by prioritizing the renovations that fit within your budget and also boost your resale value. We've gathered the most common home renovations that offer an excellent return on your investment.
1. Kitchen Remodeling: The Heart of the Home
A well-designed, modern kitchen can significantly boost property value. Focus on upgrading key elements such as countertops, backsplashes, cabinets and appliances. Opt for high-quality materials, timeless designs and energy-efficient options to attract potential buyers.
Kitchen remodels can be very expensive, ranging from an average of $26,000 up to $130,000 or more.1 Costs can easily spiral out of control quickly, which can affect your ROI.1 If you're on a tight budget, opt for minor kitchen remodels that refresh and modernize the space—and can have as much as an 85.7% return on investment.2
2. Bathroom Renovation: A Spa-like Retreat
Most sellers (71%) make at least one home improvement before listing their home.3 Bathrooms are a top choice, especially because strategic upgrades there can have a substantial impact on a relatively low investment. In fact, most bathroom remodels cost an average of $10,000, although you can make more modest changes with renovations costing $1,000 or less.
Consider renovating the primary bathroom and guest bathrooms with features like stylish fixtures, quality tiles and updated vanities. Adding luxury touches such as rain showerheads, heated floors or a double vanity can create a spa-like retreat and increase the overall value of your home. It's also possible to renovate a bathroom on a budget and still make a big impact.
If you don't have the stamina for a full remodel, even minor repairs and upgrades in the bathroom (like painting and refinishing cabinets or decorative choices) can yield a $1.71 increase in home value for every $1 you spend.4
3. Energy-efficient Improvements: Cost Savings and Sustainability
Investing in energy-efficient upgrades not only benefits the environment, but also appeals to cost-conscious buyers. Consider adding insulation, installing energy-efficient windows and upgrading to LED lighting. Installing solar panels or a tankless water heater can further reduce utility costs and attract eco-conscious buyers.
With rising gas and oil prices, one of the most surprising home renovation projects to give you the most bang for your buck is investing in a heating, ventilation and air conditioning (HVAC) electrification conversion. Although the average price of this fix is $17,747, this choice breaks the 100% ROI rate—meaning you can make more on the upgrade than you initially spent.2
4. Curb Appeal: First Impressions Matter
The exterior of your home plays an important role in making a positive first impression on buyers. Enhance curb appeal by investing in landscaping, fresh exterior paint and a well-maintained front entryway. The cost of replacing your front door is a modest $2,214 and can really improve the look of your home.2 Adding outdoor living spaces like a deck, patio or outdoor kitchen can also increase the appeal and value of your home.
5. Basement Conversion: Unlocking Hidden Potential
Unused basements offer a tremendous opportunity to add functional living space and increase your property value. Consider converting the basement into a family room, home office or guest suite.
This renovation may cost between $4,700 and $41,000, with an average price of $22,850, while waterproofing your basement will cost about $5,000.5 Ensure proper insulation, lighting and ventilation to create a comfortable and inviting space.
Some home buyers want more space when moving to a new place, especially now that more people work from home.6 Remodeling an unused space can create new rooms, which can significantly increase resale value.
6. Flooring Upgrades: Beauty and Durability
Upgrading your flooring can impact the overall aesthetic of your home. Consider replacing outdated carpet with hardwood, laminate or luxury vinyl flooring. The national average cost to install vinyl flooring is $2,327, whereas quality engineered wood flooring costs about $10 to $14 per square foot. These options are not only visually appealing, but also durable and low-maintenance, making them attractive to potential buyers.
7. Smart Home Technology: Must-have Modern Features
Embracing smart home technology can give your property a modern edge. Install features such as smart thermostats, security systems and lighting controls that can be operated remotely. These convenient and energy-efficient upgrades can enhance the overall appeal and value of your home.
8. Small Improvements: The Little Things Count
If you're budget-conscious but want to refresh your home to attract new buyers, rest assured that you can still enjoy a boost in property value with relatively minor and inexpensive improvements. For example, for less than $50 and a weekend of your time, you can tackle many minor upgrades, including painting ceramic floor tile, replacing outdoor lighting or painting doorknobs to transform and modernize your home on the cheap.7
Boost Your Property Value With Home Renovations
When it comes to maximizing ROI through home upgrades, strategic planning is key. Focus on areas like the kitchen and bathrooms, invest in energy-efficient improvements, enhance curb appeal, convert unused spaces, upgrade flooring and integrate smart home technology. By prioritizing these upgrades, you can not only enjoy a more comfortable living space, but also increase the value of your property for future buyers.
Plan your home improvement budget carefully by saving up for renovations in a high yield savings account, or consider the RVC HOME™ Credit Card for promotional financing at a wide range of retailers.
Fiona Tapp is an award-winning writer. Her work has appeared in The Globe and Mail, The Washington Post, The Atlantic, The Sunday Times and others.
READ MORE: 8 Tips to Improve Your Home
Sources/references
1. Bennett, Paige. How Much Does a Kitchen Remodel Cost? [2023 Data]. Angi. Updated June 30, 2023. Accessed July 3, 2023.
2. 2023 Cost vs. Value Report. Zonda. Published March 15, 2023. Accessed May 31, 2023.
3. Berchick, Edward. Sellers: Results from the Zillow Consumer Housing Trends Report 2022. Zillow. Published August 2, 2022. Accessed May 31, 2023.
4. ROI For A Bathroom Remodel. Zillow. Updated November 1, 2021. Accessed May 31, 2023.
5. Wallender, Lee. How Much Does It Cost To Finish A Basement In 2023? Forbes. Updated January 30, 2023. Accessed June 27, 2023.
6. Quint, Rose. What Home Buyers Really Want. National Association of Home Builders. Published March 2021. Accessed May 31, 2023.
7. Faulkner, Chelsea and Faulkner, Morgan. 50 DIY Home Improvement Projects to Tackle This Weekend. HGTV. Accessed May 31, 2023.