When it comes to renovating a home, many homeowners dream of achieving the perfect balance of style, comfort, and value. Inspired by the “Fixer Upper” style of Chip and Joanna Gaines, it’s natural to want a home that looks stunning and feels comfortable. However, the best renovations are those that bring strong returns on investment (ROI) as well.
Here, we’ll cover the renovations that can add the most value to your home—and a few that might surprise you with their limited ROI.
Kitchen Remodels: A High-Impact Update
Renovating the kitchen is one of the most popular ways to improve a home’s value, with an average ROI of 60-80%. It’s also one of the most visible and practical spaces for improvement. However, it’s important to keep updates manageable, as simple changes often yield a stronger ROI. Fresh cabinets, new countertops, or updated lighting can provide a substantial return. In contrast, full-scale, high-end remodels may offer a lower ROI due to their expense. When done right, kitchen remodels can improve both your daily experience and your home’s overall value.
Curb Appeal: First Impressions Matter
A property’s exterior sets the tone for potential buyers and can greatly affect a home’s perceived value. Enhancing curb appeal yields an impressive ROI of 70-100%, making it one of the best areas to focus on if you’re preparing to sell. Simple, cost-effective improvements, such as new landscaping, a fresh coat of paint, or an upgraded front door, can attract more interest. Buyers often make snap judgments about properties, and a polished exterior can be the key to a favorable first impression.
Pool Installation: A Lifestyle Choice with a Modest ROI
A pool can add lifestyle appeal to your home, especially in warmer climates or neighborhoods where pools are common. However, pools generally offer a lower ROI—between 40-60%—meaning that they’re not always the best investment purely from a financial standpoint. While a pool may attract a certain segment of buyers, it could deter others due to maintenance concerns and upkeep costs. For homeowners, pools are often a lifestyle choice rather than an ROI-driven decision.
When planning home renovations, understanding ROI is essential. Kitchen updates and curb appeal improvements are solid choices for those looking to increase property value. Pools, while appealing, may not provide as much financial return but could enhance your enjoyment of the home.
Before you take on a project, think about what’s most important to you. Are you looking to sell in the near future, or is this an investment in your quality of life? Answering these questions can guide you toward the best renovation choices for your unique goals. At Sage and Cedar Real Estate, we’re here to help you navigate these decisions, ensuring that your updates add beauty, functionality, and value to your home. Ready to start the conversation? Visit us here to schedule a meeting with a S&C agent.