It’s time to redesign your home the way you want, enjoy the benefits, and see the rewards in return. These key upgrades will not only improve the look and feel of your home, but bring in the highest return when and if it comes time to sell. Check out the highest returns on various types of investment remodels in 2023.
In general, home renovations provide a 70% ROI. Indeed, home renovations are the only type of investment that can improve quality of life in your own living space while increasing the value of your home as you look toward the future. The improvements with the highest ROI include projects that add square footage and functional space, such as basement refinishing, additions such as bedrooms and bathrooms, and new kitchens.
Some of the improvements that do not add much value include luxury upgrades, aesthetics-only improvements, or unusual projects that do not fit the homes in your neighborhood.
The ROI you will experience from a home renovation will depend on many factors, such as:
- Current state of the real estate market
- Location
- Timing
- Project type
Taking a Look at Various ROIs
Whether you’re planning on expanding your kitchen, improving your master bath, finishing your basement, or opening up your living space, it’s helpful to first look at the typical returns on investment you would get from a specific type of project.
According to Remodeling Magazine’s Cost vs. Value Report for 2023, here are some breakdowns of project costs and recouped costs you can expect:
- Minor kitchen remodel: job cost of $26,790 with 85% ROI
- Midrange bath remodel: job cost of $24,606 with 67% ROI
- Major kitchen remodel: job cost of $77,939 with 42% ROI
- Upscale bath remodel: job cost of $76,827 with 37% ROI
- Major upscale kitchen remodel: job cost of $154,483 with 32% ROI
- Midrange bathroom addition: job cost of $57,090 with 30% ROI
If you’re looking at projects that have the highest ROI of all, consider these:
- HVAC conversions: 103.5%
- Garage door replacement: 103%
- Manufactured stone veneer: 102%
- Entry door replacement: 101%
- Vinyl siding: 95%
You may be wondering: what’s a good return on investment for any home improvement project? The rule of thumb here is an ROI of at least 70% is considered good, but again, this will depend on your home, neighborhood, real estate market, and location. In general, any home improvement is a good one if it improves your comfort, convenience, square footage, and functionality.
Contact Neptune Kitchen and Bath
If you’re considering a home redesign and want to focus on your kitchens and baths, get in touch with our design team to learn how we can make your dreams a reality. Contact us today for a free quote and consultation.
