Making improvements to your home can be a great way to increase its value. Whether you're looking to make a few minor changes or undertake a major renovation, there are a variety of projects that can help you get the most out of your investment. From kitchen and bathroom remodels to adding extra bedrooms, there are plenty of ways to boost your home's value. In many cases, a kitchen or bathroom remodel can offer a return of 100 percent or more on your investment.
The amount of labor you're willing to do yourself, and the number of improvements these changes offer compared to the current state of your home, can also affect the return on your investment. For example, Todd and Lisa Miller made major improvements to their 3,100 square foot ranch, built in the 1970s, and saw an increase in their home's value. According to Opendoor data on thousands of recent home sales, these are the top renovation, remodeling and home improvement projects that increase home values:
- Kitchen Remodel
- Bathroom Remodel
- Adding an Extra Bedroom
- Adding a Deck
- Adding a Patio
- Installing New Windows
- Installing New Siding
- Installing New Flooring
- Adding a Fireplace
- Adding a Pool
- Landscaping
When it comes to adding an extra bedroom, it should have a closet, a window and a door and should increase the above floor living space of your home by at least 150 square feet. Many first-time homebuyers believe that the physical characteristics of a home will lead to an increase in the value of the property. However, it's important to remember that the physical structure of a property tends to depreciate over time, while the land on which it sits usually appreciates in value. Understanding how potential land values influence property returns allows investors to make better decisions.
