Faced with the daunting unknowns and potential complications of large-scale renovations, many people immediately turn away from buying a fixer-upper.
In fact, a recent study by Frontdoor reports that offers for fixer-uppers halved from 2022 to 2023. But the high risk can come with a high reward. Frontdoor found that on average, those who take the leap of renovating a fixer-upper earn a 27.5% return on their investment. And that’s on top of the personal benefits gained from designing a home to your taste.
Of course, without the appropriate planning and strategy, budgets tend to spiral out of control and many find out the hard way that some renovations don't pay off. To find out which home improvements are really worth your time and money, Frontdoor’s data team used information from Zillow, such as square footage and price (in conjunction with Kukun’s home remodeling cost estimator) to determine the most profitable home renovations. The vast majority of these turned out to be in the kitchen and in the bathroom—two rooms that can be key to increasing the value of your home. Keep reading to find out which renovations came out on top.
Most Valuable Kitchen Renovations
Cabinets
The kitchen is the heart of any home, so it’s no surprise that kitchen cabinets make a big impression on a prospective buyer. Whether you reface existing cabinets or install new semi-custom ones, the average increase in property value from this renovation alone is 3.63%, which comes out to around $7,510. This is by far the most profitable home renovation for fixer uppers, according to Frontdoor's findings.
Appliances
Replacing mid-market branded appliances with higher-end alternatives creates a more luxurious and efficient kitchen with little effort. Buying new appliances for your fixer upper is set to increase your market value by 2.35%, or $4,922.
Counters
Counters serve an important functional purpose, and they're also often a focal point of a kitchen. According to Frontdoor, switching your counters to granite, quartz, marble, or porcelain materials can increase the price of your home by 1.81%.
Faucet and Sink
Again, switching out mid-market sinks with higher end options can have a significant impact on the appearance and, therefore, the price of your home. This type of renovation on average increases the home's value by 1.12%.
Lighting
After making a bunch of renovations, why not give them a spotlight with installing new ceiling lights over the counters or sink? Adding these types of lighting could give you a 1% boost on selling price.
Backsplash
Similar to your counters, the backsplash of your kitchen is an eye-catching detail that needs some attention. Adding a granite, quartz, marble, or porcelain backsplash can add .42% value onto your property.
Most Valuable Bathroom Renovations
Shower and Tub Surround Panels
Though bathroom renovations typically add less value than those in the kitchen, they can still add a four figure sum. Shower and tub surround panels will contribute the most to bathroom renovations, with an increase of .92% or $2,300.
Faucet, Sink, and Toilet
Replacing an average faucet, sink, and toilet with a higher end option transforms the appeal and comfort of your bathroom, adding .61% value and potentially saving you from an old-pipe-induced plumbing disaster.
Cabinets
Whether you're redoing your original cabinets with higher end materials or installing completely new ones, upgrading your bathroom cabinets can add .45% to its value. New cabinets are also an easy way to change up the aesthetic of your bathroom by introducing wood or color.
Read more at RealSimple.com
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