When working on home upgrades, it can be a challenge to figure out exactly what projects to tackle. With all the possibilities, how do you pick a home improvement that adds value and doesn’t turn into a money pit? Here’s a look at 7 home upgrades with the best return on investment for a moderately sized house, with data from the Remodeling 2021 Cost vs. Value Report.
7 Home Improvements That Add Value to Your Home
1. Minor Kitchen Remodel
Return on Investment: 72.2%
Average Project Cost: $15,000 – $26,000
The kitchen is usually the hub of a home, and remodeling this room is the most cost-effective home improvement you can take on. If your kitchen has a good layout but is just a bit outdated, a minor update may be all you need. Kitchen renovations can get expensive, so a less-intensive update is a good way to keep your budget in check while still making improvements.
Minor Kitchen Remodeling Projects Include:
- Refacing the kitchen cabinets with new doors or paint.
- Replacing the oven and cooktop.
- Updating the sink and fixtures.
- Updating the countertop with a cost-effective material like laminate or granite.
Pro Tip: When renovating your kitchen, it’s a good idea to set up another area in the home for cooking and storing food. Learn what your temporary kitchen should include, along with other tips for surviving a kitchen remodel.
2. Steel Entry Door Replacement
Return on Investment: 65%
Average Project Cost: $500 – $1,500
A simple, cheap way to increase your home’s value is to replace your main door. Steel doors are durable and strong, giving your home an added level of security.
Steel Entry Door Replacement Projects Include:
- Removing the old door and frame.
- Installing a new door and frame.
- Installing a new lock mechanism.
3. Major Bathroom Remodel
Return on Investment: 60.1%
Average Project Cost: $10,800 – $24,500
Upgrading your bathroom is among the best home improvements both for resale value and improved functionality. But how much value does a bathroom remodel add? A major bathroom remodel has a 60.1% ROI, and this renovation can pay off into your current life too. This is also a great time to consider adding water-saving fixtures to save on future utility bills.
Major Bathroom Remodeling Projects Include:
- Replacing the tub and ceramic tile surround.
- Tearing out the vanity and installing a new solid-surface vanity with an integrated sink and new faucet.
- Installing a new efficient toilet.
- Replacing the medicine cabinet.
- Installing a new ceramic tile floor.
4. Accessibility Bathroom Remodel
Return on Investment: 57.9%
Average Project Cost: $38,800
Making handicap-accessible updates to your main bathroom is a great option to consider when getting ready to sell your home, as it will appeal to retirees. If you are planning on aging in place in your current home, this may be a necessity as well as an additional comfort.
Accessibility Bathroom Remodeling Projects Include:
- Moving light switches to sitting-level.
- Replacing door with a 36-42”-wide wheelchair-accessible entry.
- Installing a comfort height toilet with an elongated bowl.
- Installing a curbless shower or a tub with a swinging door.
- Replacing the vanity with an adaptive living vanity and adjustable mirror.
5. Major Kitchen Remodel
Return on Investment: 57.4%
Average Project Cost: $30,000 – $60,000
If you are unhappy with your current kitchen layout and have the budget for it, a more significant update may be in order. The best kitchen remodeling ideas include adding an island, wall oven, or an upscale fridge, range or sink.
Major Kitchen Remodeling Projects Include:
- Tearing out cabinets and replacing them with custom, all-wood cabinets.
- Installing an island if space allows.
- Adding high-end granite countertops.
- Replacing the sink with a double-bowl stainless steel option.
- Updating the oven and range with new, energy-efficient models.
- Purchasing a new stainless steel refrigerator.
- Adding a vented hood above the range.
- Installing a built-in microwave.
- Updating floors to a high-end vinyl or hardwood.
6. Bedroom Suite Addition
Return on Investment: 54.7%
Average Project Cost: $100,000 – $224,000
If your home doesn’t currently have a suite or it’s not to your liking, adding a completely new one could be a home upgrade that pays off. A good way to lower the cost of a master suite addition is to convert an attic, if the roof is high enough. As a room that you will spend a lot of time in, carefully consider the design of the bedroom suite before you start your project.
Bedroom Suite Addition Projects Include:
- Building a foundation and walls if not utilizing an unfinished space like the attic or basement.
- Adding an en suite bathroom with ceramic tile floors, a tub or walk-in shower and double-bowl vanity.
- Replacing your bedroom flooring.
- Installing lighting.
- Painting the room.
- Building a walk-in closet.
7. Bathroom Addition
Return on Investment: 53.1%
Average Project Cost: $10,000 – $60,000
If your house only has one bathroom, adding a second would be beneficial for both resale value and improving your daily life. You can even consider adding a half-bathroom to make another toilet or sink available if you already have two or more full bathrooms.
Bathroom Addition Projects Include:
- Running plumbing lines.
- Installing fixtures like the toilet and a vanity with sink.
- Installing a fiberglass tub with ceramic tile surround.
- Building a small linen closet.
- Adding lighting.
- Installing a ceramic tile floor.
Ready to Take On a Home Improvement Project?
If you’re looking to take on one of these value-adding home improvement projects, learn how to get started with these helpful guides:
- How to Budget for a Home Renovation
- How to Gut a Room Yourself
- How to Save Money on a Home Renovation
© 2020 Hanley Wood, LLC. Complete data from the Remodeling 2021 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.