Which spaces/rooms add the most value to your home?
Homeownership often requires you to balance the dual purposes of building a home and maintaining a financial investment. Requiring many homeowners to consider short and long-term goals and consequences for decisions. Some buy starter homes, intending to upgrade in a few years. Others want a long-term home they can eventually sell, hopefully for a profit.
Both groups want a home that meets their needs and increases in value. So, whether you’re looking to add value to your home for an upcoming sale or trying to make a quality of life/aesthetic change with your investment in mind, we can help. We’ll cover the changes, features, spaces, and rooms that effectively add value to homes.
Additions & Renovations
The most impactful ways to add value to your home require remodeling or repurposing existing spaces. Or increasing the living space by building new rooms that add value most efficiently. These options require the largest investment but offer the best aesthetic and quality of life benefits and boast the highest returns when selling.
Consider Adding Space
Increasing your square footage is the best way to add value to a home in many cases. This is especially true when the added space is valued at a premium. The rooms that add value resulting in some of the highest monetary increases and returns on investment include added bedrooms, bathrooms, and home offices.
Extra bedrooms and bathrooms have always been known to add value to homes, around $18,000 to $20,000, according to Opendoor’s 2019 home improvement data. However, COVID telecommuting increases have skyrocketed home office demand. A whopping 58.6% of Americans now work remotely, up 159% from 2009. Just under 60% of real estate agents in a 2021 HomeLight Survey reported home offices topping buyer wish lists. Many buyers are even seeking multiple office spaces, with demand only increasing.
By 2028, nearly three-quarters of all departments are projected to include remote workers in an increasing number of industries. In 2020, home offices were reported to add value to homes by over $10,000, which has likely since increased. However, since Covid began, if home offices were built as an extension rather than converting a room, home values increased by almost $20,000.
Increase the Usable Space
Increasing the actual square footage isn’t the only way to add value to your home. You can also increase readily useful space. One method is to make additional spaces like unfinished attics into livable ones. Alternatively, storage areas, garages, closets, and small rooms can be converted into a dedicated space with a clear purpose and benefit. The idea is to turn underutilized spaces and those without widespread appeal into the kind of rooms that add value.
Good examples include laundry rooms, full or half baths, home offices, or guest rooms. Remodeling, designing, and/or furnishing the space to reflect this purpose demonstrates its utility to potential buyers. Backyards work well too. Yard space is finite. However, especially in warmer areas, adding an inground pool, hot tub, outdoor kitchen, and/or dining and entertainment area provides purpose and adds value to a home.
Renovate Your Kitchen or Bathroom
Everyone loves a beautiful, functional, and updated kitchen and bathroom. They’re two of the most important spaces that add value for all buyers. Plus, the house can be so much more enjoyable to live in when you remodel these spaces to your needs and tastes. Full kitchen and bathroom remodels increase median home values by $15,000 and $11,000, according to Opendoor data.
Smaller, More Affordable Fixes
Not all homeowners can afford to start construction projects or design overhauls. Many people are on a tight budget and don’t have that kind of money to invest upfront. But don’t worry; there are practical, effective, and affordable ways to add value to your home.
Repair, Replace, & Upgrade High-Impact Elements
If you can’t swing a full kitchen or bath remodel, try updating the hardware, countertops, appliances, fixtures, and/or vanity. Pick the areas where replacements would have the most impact. Another choice is updating or restoring flooring and tile. This can mean a full replacement or refinish. Upgrading to energy-efficient and convenient appliances that save time, money, and effort is another high-value option.
Utilize Strategic Beautification
Don’t underestimate the value of curb appeal. A fresh coat of paint, a little landscaping work, and updating various visual elements can do wonders for the look of your home’s exterior and draw buyers in. Adding a paver or flagstone patio, grill, fire pit, and/or attractive seating can illustrate the utility of the space for little cost.
For the interior, fresh paint, new curtains, lighting fixtures, and arranging rooms most appealingly goes a long way. As mentioned earlier, staging your art studio, guest room, or other extra space with office furniture can increase the value quite a lot. Help buyers see themselves at home there and show them what’s possible.
Consider Your Unique Factors and ROI
Many of the factors in the value added by these various methods are incredibly fluid and depend on hyper-specific variables like your location, your home’s value, the needs, demographics, and costs in your neighborhood, etc.
Furthermore, value-added and return on investment aren’t interchangeable. If you’re planning to renovate solely to get a higher asking price, ensure the value-added is more than you spend on it. Consult experts on the cost of different options and the value they would add to your home specifically to be sure.
Additionally, consider your own cost-benefit analysis. Some changes might not significantly add value to your home but would vastly improve your daily life. It might be worth it to you.
Choose Offercity for an Easier Way
Offercity can help homeowners looking to sell quickly for the best price without the hassle of decluttering, making costly repairs, or dealing with home inspections, fees, and commissions. We’ll work on your behalf, marketing your home directly to local investors and getting you the price you deserve. We ensure your home nets the best possible cash offer as-is by getting investors to bid against each other, competing for your home, and guaranteeing you the best price. Contact us to get started.