Home improvement projects don’t always have to be costly to greatly increase the value of your home. Depending on your budget and timeline, some projects can be as simple as repainting a door or remodeling key elements of a kitchen. The following are some solid home renovation projects that will boost your home value.

Home improvement projects are not only about enhancing your living space but also increasing the value of your property. Whether you’re planning to sell your home or want to make smart investments, certain renovations offer the highest return on investment (ROI) and significantly impact resale value. ROIs on home improvement projects can vary depending on which ones you tackle. In this article, we will explore the 9 best home renovations to increase value for your home, offer some insight on costs and ROIs, and highlight how they enhance both monetary value and your quality of life. Let’s dive in and discover how these projects align with modern trends and lifestyle considerations.

Prioritizing Home Improvement Projects

Understanding how to prioritize your home improvement projects is essential. Assess the condition of your home, identify areas that require repair or improvement, and consider projects that offer the greatest impact on property value. This strategic approach ensures you allocate resources efficiently. For the cost-conscious homeowners, rest assured that not all improvement projects will run you a fortune. There are many cost-effective projects that are great for making your home more comfortable and adding to its resale value.

1. Add an Accessory Dwelling Unit (ADU)

How much does an ADU increase property value? Up to 30%. You read that right. Not only does the addition of an ADU, such as a converted garage or a standalone structure increase property value, it also provides additional income opportunities. There has been a growing trend of turning ADUs into short-term rental properties through services like AirBnb. In one estimate, the projected annual rental income can reach up to 33k a year. While the estimated costs of ADUs can run you several hundred thousands, the final price is ultimately up to the types of units you are looking to build and the cost of labor and materials in your area. On the lower end, new construction detached ADUs can go for as low as $162 per sq ft. Meanwhile, for a basement ADU, that price can go as low as $125 per sq ft.

If you are not interested in renting out your ADU, this extra space can serve as a guest room for family or friends visiting without having them in the same house, or as a home office for yourself. Alternatively, for older children still living with parents, having a detached ADU can offer extra space without incurring extra expenses of renting a separate apartment. In either case, ADUs make for a great investment because they are versatile and can serve many purposes.

2. Bathroom Remodels to Enhance Value and Functionality

Bathroom remodels are a great way to improve the value of your home and make it more enjoyable to use. According to a study by the National Association of Realtors, bathroom remodels have the highest return on investment of any home improvement project, with an average ROI of 60 to 70%. This means that for every $10,000 you spend on a bathroom remodel, you can expect to recoup $6,000 to $7,000 in increased home value.

Of course, not all remodeling projects are the same, homeowners considering bathroom remodels should pay attention to using quality materials, getting expert estimates, as well as choosing the right fixtures, flooring, and storage. This is especially important for more upscale projects, which can run up to $61k on average. Even for a simple, low-cost remodel, attention should be paid both to aesthetics and functionality.

If some of these numbers are beyond your budget, have no fear. There are easy and smart bathroom updates you can make that won’t cost an arm and a leg. In one scenario, by analyzing more than 32,000 listing photos of recently sold homes across the nation, Zillow found that houses with pale blue bathrooms sold for $5,440 more compared to similar homes with white bathrooms. A fresh coat of haint blue, robin’s egg, or powder blue can imbue a bathroom with a clean, calm, cool feeling that boosts your home selling value. This is good news as make-over projects like this tend to be both cost and time efficient.

3. Kitchen Remodels: The Heart of Your Home

Kitchen remodels are often regarded as one of the most valuable investments homeowners can make. According to a study by the National Association of Realtors, kitchen remodels have an average ROI of 50 to 70%. This means that for every $10,000 you spend on a kitchen remodel, you can expect to recoup $5,000 to $7,000 in increased home value.

There are a number of reasons why kitchen remodels are such a good investment. First, kitchens are one of the most important rooms in a home. Kitchens are where people cook, eat, and socialize. Ever notice how everyone always congregates in the kitchen no matter how much space there is? The kitchen is the hearth and heart of a home. A well-designed and updated kitchen can make a home more enjoyable to use and more attractive to potential buyers. For kitchen remodeling, some of the best projects include:

• New cabinets
• Updated fixtures
• Main appliance replacements like fridges and stoves
• Higher quality countertops such as granite or quartz
• New paint job

What should a small kitchen remodel cost? The cost of a kitchen remodel can vary. However, even for minor remodels that average about $21, the return can be as high as 80%, that’s a whopping $17k. This makes kitchen remodels a no brainer both from the standpoint of usability and home value increase.

4. Install Solar Panels for Energy Efficiency and Increased Home Value

Investing in solar panels is a great way to reduce your carbon footprint and save money on your energy bills. Whether or not you are a green energy enthusiast or just a savvy homeowner, solar panels can also add value to your property and make you eligible for tax incentives. Here are some reasons to consider solar as a home renovation project:

Reduce your carbon footprint

Solar panels are a renewable energy source, which means they do not produce greenhouse gasses. By switching to solar power, you can help to reduce your carbon footprint and contribute to a cleaner environment.

Save money on your energy bills

Does solar increase home value? Though obvious, it is worth repeating that solar panels can save you money on your energy bills. The average 5 kW residential solar system can save $100 to $150 monthly. According to the National Renewable Energy Laboratory, “every dollar that a solar panel saves you on your electrical bills increases the value of your home by $20.” In states like California, the average savings from solar over 20 years can be as much as $49,424. Ultimately, the amount of money you save will depend on the size of your solar panel system, the amount of sunlight your home receives, and your energy usage. With solar, you’ll experience long-term energy savings. Solar panels can last for 25 years or more.

Add value to your property

A study by Zillow found that homes with solar panels sell for an average of 4% more than homes without solar panels. This is because solar panels are seen as a desirable feature by many homebuyers. The demand for solar systems in homes is higher than ever, especially in states with abundant sunlight and high electricity rates. California, Oregan, Colorado, New Mexico, New Jersey and Massachusetts are among the states with the most demand for solar outfitted homes. Not to mention certain states offer incentives and upfront rebates for installing solar power systems that can lower expenses by 10-20% while increasing property value.

Qualify for tax incentives

There are a number of tax incentives available for homeowners who install solar panels. These incentives can help to offset the cost of installing solar panels and make them more affordable. For example, solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit, and in August 2022, that number was raised to 30%. So, even if the energy savings themselves are not enough to convince you, having this tax incentive should make solar a clear, smart financial decision.

5. Roof Replacement Gives You Protection and Curb Appeal

A new roof is one of the most important home renovations you can make. Not only does it protect your home from the elements, but it can also increase its value. A study by the National Association of Realtors found that homes with new roofs sell for an average of 7% more than homes with old roofs.

How can a new roof increase your home’s value? First, it shows potential buyers that you have taken care of your property. A well-maintained roof is a sign that you are a responsible homeowner and that you have invested in your home.

Second, a new roof can make your home more energy-efficient. Older roofs are often made of materials that are not as energy-efficient as newer materials. This means that your home may be losing heat or air conditioning through the roof, which can drive up your energy bills. A new roof can help save you money on your energy bills, around $300-$500 per year, which can make your home more attractive to potential buyers.

Third, a new roof can improve the curb appeal of your home. The first thing potential buyers see when they pull up to your home is the roof. A new roof can make your home look more modern and inviting, which can make a good first impression. A new roof also shows structural integrity, which gives buyers more confidence in a home purchase.

If you are considering a new roof, there are a few things you should keep in mind. First, you need to choose the right materials for your climate. If you live in an area with a lot of snow, you will need a roof that is designed to withstand heavy snowfall. If you live in an area with hot summers, you will need a roof that is designed to reflect heat.

6. Curb Appeal Enhancements

First impressions matter. When potential buyers first see your home, they will form an impression of it within seconds. This impression is based on a number of factors but primarily the home’s curb appeal. Curb appeal is the overall appearance of your home from the street and  it can make potential buyers more likely to want to see the inside of your home.

There are a number of simple yet impactful projects that improve your home’s curb appeal. These projects can be done on a budget and do not require a lot of time or effort. Some of the most effective projects include:

Landscaping

Landscaping is a great way to add curb appeal to your home and can increase your home value up to 20%. You can plant trees, shrubs, and flowers to create a welcoming and inviting atmosphere. You can also add walkways to make your home more visually appealing. The costs of installing a paver walkway ranges between $1500-$3800 including labor and materials. More complex designs, prep work and higher grade materials  will increase the cost. From lowest to highest in cost per square foot, concrete pavers, clay, natural stone and slate, offer you a range of materials.

Repainting the front door

A new coat of paint can make a big difference in the look of your home and increase your home value. It is estimated that depending on the color of your front door, your home can sell anywhere from around $900 – $6,500 more than similar homes in the area. So, choose a color that is coordinated with the rest of your home’s exterior.

Adding outdoor lighting

Outdoor lighting can make your home more inviting at night. You can install solar motion-sensor lights to light up your walkway when someone approaches. You can also add accent lighting to trees, shrubs, and other features in your yard to showcase these desirable landscape elements. These additions are wonderful as they are non-permanent and are often some of the most cost effective ways to increase your curb appeal.

7. Basement Remodels: Unlocking Hidden Potential

A finished basement can add valuable living space and appeal to buyers seeking functionality and versatility. Converting an unfinished basement into a home office, gym, or extra living area enhances your property’s appeal its overall value. It’s been shown a finished basement can bring a return of 70-75% on investment.

If you have a growing family or if you need a place to work from home. A finished basement can serve as a guest room, playroom, or entertainment center.

If you have an unfinished basement, you may be wondering how to convert it into a finished space. There are a few things you need to do before you start:

• Inspect the basement for any damage. If there is any water damage, mold, or pests, you will need to fix these problems before you start converting the basement.
• Get the necessary permits. In some cases, you may need to get a permit from your local government before you can start converting your basement. If you are going to erect walls or install HVAC, plumbing or electrical systems in your basement for example, you’ll need a permit for those renovations.
• Choose the right flooring. The flooring you choose for your basement will depend on how you plan to use the space. For example, if you plan to use the basement as a gym, you will need to choose a durable flooring, like concrete, that can withstand heavy use.
• Install insulation. Insulation will help to keep your basement warm in the winter and cool in the summer. Investing in insulation for your basement will improve overall efficiency and reduce stress on your HVAC system.
• Add lighting. Good lighting is essential for any finished basement. You will need to install enough lighting to make the space functional and inviting. LED recessed lights for example can light up an entire basement using the least amount of energy. For low basement ceilings, the LEDs can be tucked into the ceiling.

8. Get Smart Home Upgrades

Smart home technology is a growing trend in modern living. Smart thermostats, security systems, and lighting not only provide convenience and efficiency, but also attract buyers who value the integration of technology into their daily lives. Smart home upgrades can improve the perceived value of your property. For example, a home valued at $400,000 pre-installation could see an increase of anywhere from $12,000 to $20,000 following installation.

Smart home technology can also make your life more convenient. For example, you can use a smart thermostat to set the temperature in your home before you arrive, or you can use a smart security system to arm your home when you leave. Smart home technology can also help you save energy and money. For example, you can use a smart thermostat to turn off the air conditioning when you leave home, or you can use smart lighting to turn off lights when you leave a room.

Here are some examples of smart home upgrades:

• Smart thermostats: Smart thermostats can be programmed to automatically adjust the temperature in your home based on your schedule. This can help you save energy and money.
• Smart security systems: Smart security systems can be used to arm and disarm your home remotely, and they can also send alerts to your phone if someone tries to break in.
• Smart lighting: Smart lights can be turned on and off, dimmed, and changed colors using a smartphone app. This can help you create a more inviting atmosphere in your home and save on energy costs

Conclusion

When it comes to home renovations and improvement projects, it’s crucial to prioritize those that offer the highest ROI and boost your property’s value.  Sometimes, the best home renovations to increase value are the simplest ones. Projects such as ADUs, bathroom and kitchen remodels, solar panels, roof replacements, energy-efficient upgrades, curb appeal enhancements, basement remodeling, and smart home upgrades all contribute to increased value and appeal to modern trends. By investing in these projects, you not only elevate your quality of life but also make smart financial decisions. Consult trusted local contractors, consider your budget, and embark on these transformative projects that will elevate both your home’s value and your everyday happiness. Don’t know the right experts? Don’t worry, Ido is a home improvement service that can find you the best contractors for any home project to increase the value of your home. Learn more about how we can help you increase your home value with the best project costs and quality-assured contractors for the job.