If you’re thinking about renovating or remodeling your home, it’s important to consider which improvements will add the most value. Not all renovations are created equal, and some may even decrease your home’s value. However, with the right projects, you can increase your home’s value and make it more enjoyable to live in. In this article, we’ll explore which improvements increase a home’s value the most, along with how to get a home equity loan for renovation.
Kitchen Renovations
The kitchen is often considered the heart of the home, and it’s no surprise that a well-designed kitchen can increase your home’s value. When it comes to kitchen renovations, you don’t have to break the bank to see a significant return on investment. Even small updates, such as replacing outdated appliances or installing new countertops, can increase your home’s value.
One of the best ways to add value to your kitchen is by updating the cabinets. According to Remodeling Magazine‘s 2021 Cost vs. Value Report, a minor kitchen remodel that includes refacing the cabinets can recoup over 72% of the cost when it comes time to sell your home. If you’re looking for a more extensive renovation, consider replacing the cabinets altogether.
Bathroom Remodels
Bathrooms are another area of the home that can add significant value when renovated properly. Simple updates, such as replacing the fixtures and repainting the walls, can go a long way in increasing your home’s value. If you have a larger budget, consider replacing the tub or shower and updating the flooring.
When it comes to bathroom renovations, it’s important to keep in mind that you don’t want to over-renovate for the neighborhood. While a high-end bathroom may add value in some neighborhoods, it may not be necessary in others. Be sure to do your research before starting any renovation project.
Outdoor Living Spaces
Outdoor living spaces are becoming increasingly popular among homeowners, and for good reason. Adding a deck, patio, or outdoor kitchen can significantly increase your home’s value and make it more enjoyable to live in. In fact, according to the Cost vs. Value Report, a wood deck addition can recoup over 72% of the cost, while a composite deck addition can recoup over 63% of the cost when it comes time to sell.
When planning your outdoor living space, be sure to keep the style consistent with your home’s architecture. A modern outdoor kitchen may look out of place on a traditional home, for example. Additionally, be sure to use high-quality materials that will withstand the elements and last for years to come.
Energy-Efficient Upgrades
Energy-efficient upgrades are becoming increasingly popular among homebuyers, and for good reason. Upgrades such as adding insulation, installing new windows and doors, and upgrading to a more energy-efficient HVAC system can save you money on your utility bills and increase your home’s value.
According to the Cost vs. Value Report, a midrange attic insulation project can recoup over 100% of the cost when it comes time to sell. Upgrading to a more energy-efficient HVAC system can recoup over 80% of the cost, while replacing the front door can recoup over 69% of the cost.
Home Equity Loan for Renovation
If you’re considering a home renovation project and need financing, a home equity loan may be a good option for you. With a home equity loan, you can borrow against the equity in your home and use the funds to pay for your project.
The best loans have flexible repayment terms, competitive interest rates, and no closing costs or application fees. Plus, the interest you pay on a home equity loan may be tax-deductible in some cases (consult with a tax professional to see if you qualify).
In Conclusion
It’s important to weigh the costs and benefits when considering a renovation project. While some projects may have a higher upfront cost, they may ultimately give you a better return on investment when it comes time to sell your home. And if you need financing for your project, a home equity loan may be a good option to consider.
Kitchen and bathroom renovations, outdoor living spaces, and energy-efficient upgrades are some of the best home improvements when it comes to adding value to your home. However, it’s important to consider the style of your home and the needs of your neighborhood before starting any renovation project.