Remodeling your home can be incredibly rewarding, making a big impact on your lifestyle and your everyday happiness. But a home remodel can also significantly increase the value of your property when you decide to sell. When you remodel your home, you can increase the value of your home by making it more appealing to potential buyers and adding features that make the home more comfortable and functional.
In a healthy real estate market, investing in a high-quality home remodel should increase your home’s value by at least the amount you invest into the remodel—and often much more. But, given today’s higher interest rates, HomeLight suggests an investment in home improvement is even more attractive to homeowners.
“With a changing market comes changes to our list of best home renovation projects to increase value. During the pandemic, staying in place gave rise to extravagant outdoor kitchens and elaborate home offices. Now, homeowners are leaving the house more and the best return on investment (ROI) in 2023 comes from smaller renovation projects and updated kitchen, bath and living spaces.”HomeLight
The biggest factors of bathroom and kitchen remodels that can increase a home’s value include updating worn-out items, modernizing fixtures and creating more functional living spaces.
This year, newly remodeled bathrooms and kitchens are especially in-demand for home buyers and often bring a significant premium when selling your home. HomeLight notes these remodeling trends:
In the kitchen: “Multiple sinks, various refrigeration options, flexible pantry and refrigerator space, and a convection microwave to heat meals between conference calls and video meetings all have become desirable trends.” Other must-haves: a double kitchen sink or a walk-in pantry rank high for 81% of buyers.
In the bathroom: “Buyers are looking for bathrooms that feel like a spa experience. Features that will make a bathroom pop in 2023 include rain shower heads, double-sink vanities, extra storage, soaking tubs, and anything else that contributes to a spa-like experience at home, according to a HomeLight survey.”
Beyond financial gain, remodeling a home for your specific needs creates a more enjoyable and livable home. Unfortunately, many homeowners wait to remodel as part of selling the home and never realize the benefits of living with the changes or upgrades.
The relationship between home remodeling and property value
When looking for a new home, homebuyers consider the risks associated with the quality of the home. A high-quality home will mitigate many risks by giving the buyer confidence that a professional has made recent high-grade improvements. Conversely, homes that have not been upgraded over many years may cause home buyers to worry about repairs or the need for a future remodel.
This confidence in the quality of your home will draw a comparably higher price as a result. Note the elevated look and the “wow” impact of this kitchen remodel in these before and after project photos:
Considerations for homeowners
When considering a remodel of your home, you should consider financial and personal factors.
Financially, it’s essential that your remodeling contractor understands your available budget upfront. Then, they can advise you on which improvements would be best to make within that budget and help you evaluate the potential return on your investment when you sell the home.
But it’s also important to consider your lifestyle. At Dover Home Remodelers, our designers work to understand how you live in the home and guide you in designing a remodeled home living space that perfectly suits how you live—but while still staying within budget.
Maximizing the ROI of your home remodel
Beyond the considerations you make for your remodel based on your personal preferences, there are some additional factors to keep in mind to ensure it’s a good financial investment.
Whether looking at waterfront property or a downtown condo, the cardinal rule in real estate valuation remains location, location, location. So, it’s no surprise that your local area and real estate market can affect which improvements will have the best return on investment.
You should consult with professionals to understand the potential impact as you decide on the scope of your remodel. Dover’s team of designers works with you to maximize the impact of your remodel. In addition, you can talk with local real estate agents to understand the latest remodeling trends in your area.
Lastly, it is best to work with a reliable contractor with a reputation for quality work and honest, transparent cost estimates. Home remodeling projects can expand in scope as work progresses, so always get a written quote upfront. And equally as important: be sure to partner with a contractor you feel comfortable with and trust to manage work in your home. Here’s one of our most popular blog posts about how to select your home remodeling partner.
The best is yet to come,