Interior Upgrades that Increase Home Value

If you’re looking for a project that will help put equity into your home, we are breaking down ten of our favorite high-return remodeling projects. 

Every home is different so, the best way to start is to walk around your home and look at which surfaces, finishes, or materials are starting to wear out or look dated. Those are the first upgrades you’ll want to make.

1. Insulation Upgrade
   • Most homes haven’t been modified with energy efficiency in mind, so it’s a great place to start. Anytime you feel a draft or cold spot, try to find the culprit. Often they are cracks that can be easily sealed. The most common spaces for leaks and increased insulation are around windows, doors, electrical sockets, light switches, recessed lighting, and wires that go outside. According to the 2019 NAR Remodeling Impact Report, more than 80% of this value is recovered from completing the project. The best part of this project is you’ll see the impact and savings on your energy bills right away.
2. Designate Space for Home Office
   • As a buyer, it’s hard to imagine potential. That’s why staging can have such a large impact on value. Whether you convert an unfinished or underutilized space, you’ll see more interest especially if you can designate it as a home office. Have a small extra bedroom? Try to reinvent it. We have always said that kitchens and bathrooms sell homes, but with more people than ever working and learning from home, a space for a home office has become a hot ticket to make properties more sellable.
3. Complete Kitchen Renovation
   • This is one of the more expensive upgrades, but kitchens and bathrooms are one of the main considerations of potential buyers. If you’re thinking about selling, don’t splurge for the top of the line features, keep potential buyers in mind. They are willing to pay for an updated but maybe not an overly deluxe kitchen. It’s estimated that about 59% of the value is recovered from this project when selling, according to the 2019 NAR Remodeling Impact Report. 
4. Small Kitchen Upgrade
   • Not ready for a full kitchen remodel? A little paint can go a long way. Try painting cabinets and adding new hardware, it can completely transform a space. If you can, make sure to update or refinish your backsplash as well. It’s a cost-effective way to add value to your space.
5. Add a Bathroom
   • Adding an entirely new bathroom to your home will add a great deal of value, especially if your home only has one bathroom currently. According to the National Association of Home Builders, buyers tend to prefer houses where the number of bathrooms equals the number of bedrooms. However, before committing to a bathroom addition, be sure to give a real estate agent or an appraiser a call to ensure it makes the most sense for your specific home. 
6. Bathroom Renovation
   • Maybe just renovating your current bathrooms makes more sense. This doesn’t have to be a full renovation either. Small changes such as replacing wallpaper or dated paint can breathe new life into your space. One of our favorite upgrades is to replace old lighting, it’s cost-effective and everyone likes their bathroom to have good lighting. If you’re looking to take it a step further, try replacing the outdated vanity, update the floor, or even reglaze your tub. 
7. Replace or Refinish Flooring
   • Worn out floors are one of the first things that potential buyers will notice about your home. The more cost-effective option is refinishing your flooring, this can transform your space and is only estimated to cost around $2,600. However, if your floors are outdated, it might be better to replace the floor. This is about double the cost of refinishing but either option results in almost the entire value, if not more, recovered from the project, according to the 2019 NAR Remodeling Impact Report. 
8. Closet Renovation
   • Improving the flow and organization of a closet can change how buyers look at your space. Buyers often worry that a new home will not have enough storage, especially if your home is on the smaller size or lacks a basement. You don’t need to splurge on a top of the line custom closet system but new rods and built-in shelves can help set your home apart from others on the market.  
9. HVAC Replacement
   • If your heating or cooling system is older than 10 years and you want to sell, it might be time to think about proactively purchasing a new HVAC unit. The age and efficiency of HVAC systems are important to buyers. This will also give potential buyers less room to negotiate a lower price. Another benefit is that your home will be more energy-efficient, this is a big priority to potential buyers. 
10. Finishing the Basement
    • Any time that you can make your home feel more spacious or add living square footage to your home, it’s going to add value. This is a pricing upgrade that can involve drywall, flooring, and paint but according to HomeAdvisor, you can recoup up to 75% of the cost. A finished basement will not increase your square footage like an addition would, but it will make your house more marketable.

If you’re thinking of selling try looking at future home improvements through the lens of investment. Remember each home is different. Give us a call, one of our agents would be happy to come and look at your house and give you free personalized advice on what upgrades are worth the investment.