You've been pining (and pinning inspo photos) over those kitchen updates, new flooring, or freestanding bathtub. And, since you're a rational human, you're probably also wondering, œWhat renovations add value to my home? Carefully planned renovations can help you sell your home more easily. However, not all renovations will get you the homebuyer attention (or equity perk-up) you're hoping for. In the end, it's important to evaluate whether the renovations will provide you with an efficient return on investment (ROI). This means that the money spent on the renovation itself must reasonably balance the perceived value added to the home. After all, you want your renovation efforts to translate into tangible value, not just aesthetic appeal. So, let's dive into the renovations that truly add value to your home and avoid those that may leave you with little to show for your investment. Then, go ahead and break out the sledgehammer. You might as well enjoy those upgrades for as long as possible before cashing in on your hard work.
What Renovations Add Value to My Home? The Big 5.
The five renovations listed below are a great place to start if you are looking for a high return on investment. Cost and ROI are Denver averages from January 1, 2024 until this writing.
1. Garage Door Replacement
Average job cost in Denver - $4,420 | Average cost recouped in Denver- 215.8%
Overlooked but not to be underestimated, replacing your garage door can significantly enhance your home's curb appeal and overall value. A worn-out or outdated garage door can detract from the aesthetics of your property, while a modern, well-maintained one can instantly elevate its appearance. Moreover, a new garage door often boasts one of the highest ROIs, making it a smart renovation choice. Potential buyers appreciate the convenience, security, and visual appeal of a new garage door, making it a worthwhile investment for sellers looking to maximize their home's market value.
2. Steel Entry Door Replacement
Average job cost in Denver- $2,241 | Average cost recouped in Denver - 172.4%
When it comes to enhancing both the security and aesthetic appeal of your home, few renovations offer as much bang for your buck as replacing your entry door with a steel one. Steel entry doors are renowned for their durability, providing superior protection against intruders while also offering excellent resistance to the elements. Beyond security, a steel entry door can also significantly enhance your home's curb appeal, instantly giving it a modern and sophisticated look. With a wide range of styles and finishes to choose from, you can easily find a steel door that complements your home's architecture and reflects your personal taste. Plus, with its high return on investment (ROI) and relatively low cost compared to other renovation projects, replacing your entry door with a steel one is a smart investment that will pay dividends when it comes time to sell your home.
3. Manufactured Stone Veneer
Average job cost in Denver - $11,218 | Average cost recouped in Denver - 111.8%
Looking to add character and charm to your home's exterior? Consider investing in manufactured stone veneer. This versatile material offers the timeless appeal of natural stone at a fraction of the cost, making it an attractive option for homeowners seeking to enhance their property's curb appeal. Whether used to accentuate entryways, fireplace surrounds, or entire facades, manufactured stone veneer can instantly elevate the aesthetic appeal of your home. Not only does it provide a luxurious look, but it also offers excellent durability and low maintenance, ensuring long-term value for your investment. With its high average ROI and ability to enhance the visual appeal of any home, manufactured stone veneer is a renovation choice that is sure to impress potential buyers.
4. Minor Kitchen Remodel
Average job cost in Denver- $25,898 | Average cost recouped in Denver - 82.4%
Dreaming of a kitchen upgrade but hesitant about the cost? A minor kitchen remodel might be the perfect solution. While it may not offer a full return on investment in terms of resale value, the benefits of daily enjoyment and improved functionality make it a worthwhile investment for many homeowners. A minor kitchen remodel typically involves cosmetic updates such as replacing cabinet hardware, updating countertops, refreshing paint, and installing new fixtures. These relatively low-cost changes can breathe new life into your kitchen, creating a more inviting and functional space for cooking and entertaining. While you may not recoup every dollar spent on the remodel when it comes time to sell, the daily enjoyment and increased appeal to potential buyers make it a renovation well worth considering. After all, a kitchen is the heart of the home, and investing in its comfort and functionality is an investment in your daily happiness.
5. Mid-range Bathroom Remodel
Average job cost in Denver - $25,162 | Average cost recouped in Denver - 74.4%
Considering a bathroom upgrade? While the ROI for a bath remodel may not reach the heights of some other renovations, the joy it brings makes it a compelling option for homeowners planning to stay put for a while (and it still beats the ROI of many other home improvement projects like a major bath or kitchen remodel or a deck addition). From luxurious soaking tubs to sleek, modern fixtures, a bath remodel allows you to create a personal oasis tailored to your tastes and needs. While the ROI typically hovers around 74.4%, the daily pleasure and improved quality of life that a newly renovated bathroom provides are immeasurable. Whether you're seeking a spa-like retreat or simply updating outdated features, a bath remodel can transform your daily routine and enhance your home's overall appeal. So, if you're planning to stay in your home for the long haul, investing in a bath remodel is a decision you're sure to enjoy for years to come.
If these areas of your home are already looking great, or you have more room in your budget, you may decide to take on larger or more unique projects. These projects should either improve the function, flow, or appearance of your home.
Improve Function
A low-risk renovation is one that adds function to the home. If there is something broken, such as plumbing, electricity, etc. it is best to get that fixed so that it doesn't scare away potential buyers. However, if you are not a professional, you will need to hire someone to take care of these jobs. Next, look around the house - is there anything about the house that is missing or simply doesn't make sense? Maybe there are many bedrooms but only one bathroom - adding a bathroom could be a profitable investment. An unfinished basement is another project that would improve function by creating a more livable space. If the renovation seems necessary, then it is a relatively safe bet.
Improve Flow
Another way to get your money's worth through renovation is to improve the flow of the house. Most people these days prefer a somewhat open-concept layout. If there are many walls everywhere making the space look small, consider opening up the space. Whatever you do, make sure that the layout is practical and has a natural flow. You may hear real estate agents say something like, œand the kitchen flows right into the living room. They say this because it is a quality that many home buyers are looking for. They want their living space and kitchen to feel connected in some way. This makes it easier to watch kids, or simply connect with the family while cooking. While there are people who prefer separate rooms, open concept is especially popular at the moment - and anyone can appreciate a practical layout. However, there is always a risk when taking down walls or messing with the foundation of the home. Therefore, it is important to have a contingency budget in case you find any unfortunate surprises.
Improve Appearance
Lastly, you can choose to tackle a renovation based on improving the appearance of your home. We have already discussed modernizing your kitchen, beautifying your bathroom, and updating curb appeal, but there are many other ways to spruce up your home. Another way to improve appearance is by adding windows, or even updating lighting fixtures, to help make the space look brighter, happier, and larger. Make sure that if you choose to update appearance you do not spend too much money, as looks are subjective. What you like may not be what your buyers like. Therefore, it is recommended to only renovate for appearance if something is especially hard on the eyes and scaring off buyers.
Don't Start High-Risk Projects
Now that we have gone over some good potential renovations, let's discuss what not to do. Renovations can be risky, so you may want to avoid huge projects that will cost a ton of money. For example, if you want to add an additional room, make sure you consult with an expert to see how much this would add to the value of the home. After crunching numbers, you may realize that the addition will not be worth it in the end. An example of a project to avoid would be adding a swimming pool. Not only is this a huge, expensive project, but it is also not a necessity for the home. In fact, many people avoid houses with pools in Colorado because of safety concerns or maintenance costs. It is much more practical to stick to renovations that improve the function of the home.
Don't Make Risky Design Decisions
As previously mentioned, not everyone has the same style. Be careful when renovating so that you do not spend too much money on trendy or unique items because this is something that the buyers may end up wanting to change anyway. If you do need to spruce up the appearance, choose relatively minimalistic and neutral design choices. While you may love funky designs and bold choices, it is not the best decision for the purpose of improving the value of your home.
When it comes to the question, œwhat renovations add value to my home? the stats tell the story. Make sure that your renovations are necessary and perform a cost analysis to determine your return on investment. Keep your buyers in mind when making appearance decisions, rather than focusing solely on what you think looks good. But keep your personal enjoyment in mind too! If you plan to live in your home for a few (or more) years post-reno, you'll want to make updates that are also lifestyle upgrades. Renovations always come with risk, so plan ahead with a contingency budget in case anything goes wrong. It is also a great idea to speak with a professional to see what they suggest for your particular home. Real estate agents and interior designers are great resources for making these decisions.
Connect with one of our home experts for some customized renovation suggestions for your home.
Socials