How to Add Value to Your Home Through Renovation and Remodeling
BY IRENE HUHULEA Updated July 22, 2021
Making upgrades to your home can be a wonderful way to add value. From adding a new patio to remodeling your bathroom, even small improvements can have a big impact on your home’s worth. It’s important to note, however, that not all remodeling projects offer the same benefits. While everyone loves an updated kitchen, more expensive renovations can make it difficult to recoup the costs.
If you’re thinking about upgrading your home, a few factors can help you decide which projects are likely to offer the greatest benefits. Below, we break down what they are and how they can help you add value to your home.
Consider Which Improvements Have the Most Impact
While many home improvements can make a difference to the look and feel of your home, a few key upgrades are known for boosting its value. Studies show that the following home improvements will generally benefit you in the long run.1
Kitchen and bathroom remodeling
Updating older appliances
Refinishing an attic or basement
Adding a deck
Improving energy efficiency
When determining which remodeling projects to undertake, consider talking to a real estate professional who can advise you on your home’s current value and which improvements might be most beneficial for your particular home.
Balance Expenses With Return on Investment
Replacing all of your bathroom tiles may seem like a great idea, but is it really worth it? Although bathroom and kitchen remodeling tends to offer a significant return on investment, bigger isn’t always better.
In fact, studies show that major kitchen remodels rarely pay off. Homeowners who spend upwards of $135,000 on their renovation, only manage to recoup an average of 53.9% of their expenses.2 The same is true for bathroom remodeling and other types of expensive upgrades.
Rather than aiming for luxury, we recommend focusing on changes that will transform your space without the large price tag. These include replacing cabinets, updating countertops, and switching to energy-efficient appliances. Combined, these swaps have a strong return on investment and are less costly than more substantial changes.
Address Relevant Costs Without Compromising Financial Security
Knowing the typical costs associated with a remodeling project is another helpful way to curb expenses. For kitchen and bathroom remodeling, we suggest using a home remodel calculator to figure out the specific costs and plan accordingly. For other types of renovation projects, home improvement platforms such as HomeAdvisor are often helpful resources.
Once you’ve estimated the cost, assessing your financing options can be a good way to cover expenses without sacrificing the rest of your finances. It’s important to note, however, that not all financing options are created equal. A Discover® personal loan can often be a great option with flexible repayment terms and the ability to borrow between $2,500 and $35,000. Plus, there are no origination fees, no closing fees, and no fees of any kind as long as you make your payments on time. You’ll also be able to speak to a loan specialist and have your questions answered before you apply.
As a homeowner, investing in your home is one of the best decisions you can make for yourself and your family. With careful planning and a clear understanding of return on investment, you can choose the remodeling projects that are right for you.