Homeownership is still one of the best investments a person can make, but even top investments require some upkeep.
Whether the improvements are age-related (the median age is 39 for a U.S. home) or aesthetic upgrades (hello, bathrooms and kitchens), numerous home projects end up being well worth it in the long run for resale.
Yasmin Davis of Miami notes that with more homeowners than ever spending top dollar on renovations — median spending rose 20% between 2020 and 2021 — it’s essential to plan on the changes that will give homeowners the biggest bang for their budget renovation buck. Here are some of the best projects to consider right now for resale.
HVAC System
First the bad news. Upgrading an HVAC system to be more energy-efficient and eco-friendly is on the pricier side at an average of $17,747. But the good news is really good. HVAC conversions lead to an average resale value of $18,366, giving it a whopping return on investment of 103.5%.
Such a renovation also opens the home to a whole new community of buyers who prioritize using as many renewable sources of energy in their home as possible.
Deck Addition
A wood deck addition isn’t just a practical way to appeal to buyers looking for large outdoor entertaining or play spaces. The average cost recovery of a wood deck project is a substantial 80% to 85%.
Depending on a homeowner’s space and taste, such renovations often run up to at least $10,000 but in areas where sunshine is the norm throughout the year, such as California, Florida, and Hawaii, a wood deck is a top selling point.
Bathroom Remodels
Bathrooms quickly become outdated, but even a minor bathroom model can yield a 102% return on resale on average. Bathroom renovations also offer flexibility based on a homeowner’s budget.
Replacing many bathroom features at once, such as the tub, toilet, floor, and vanity, can get pricey, but smaller cost changes, like reglazing or recalking a tub, adding a fresh coat of paint, or adding updated fixtures, can easily make a bathroom look new and modern.
Curb Appeal Fixes
A recent survey found that upping the curb appeal can pay off, with buyers spending 7% more on average for a home that doesn’t neglect its exterior.
There are a lot of possibilities here — a new garage door, a stone veneer, new paint for the front door — but even minor curb appeal projects like a well-kept lawn and some landscaping with flowers, plants, and mulch, can have a return on investment of as much as 540% when only spending $300 or $400. And in certain areas, like the Northeast, a mid-range investment of about $3,500 has a resale value of about $14,800.
Kitchen Remodels
On average, a minor kitchen remodel comes with a 99% return at resale, with most projects ranging from $14,000 to $15,000. A homeowner can get a lot with that budget, including new cabinet faces, upgraded countertops, modern flooring, and even new appliances such as a wall oven and cooktop.
Elements like ceramic backsplashes and large islands also make a home stand out from the pack in a competitive market.