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Boosting Your Home’s Value: 5 Upgrades That Pay Off



The value of your home is an investment that deserves regular attention and care. Whether you plan to sell your house soon or simply want to increase its value for your own satisfaction, strategic upgrades can make a significant difference. Each year, the National Association of Realtors® (NAR) surveys homeowners on common remodeling projects, covering details like cost recovery and a 1-10 “Joy Score,” which is based on the happiness reported since completing the project. Below, we'll explore five home improvements that not only enhance your living experience but may also increase your home's worth.


 


The Value of Closets

Closet renovations have immense potential. Often overlooked, closets play a vital role in our daily lives, and a well-organized, functional closet can be a game-changer, both in terms of home value and owner happiness. Depending on how many DIY elements you incorporate into your closet remodel, like self-installed shelving or storage, you could increase the already strong 83% cost recovery NAR estimates for this remodel. What’s more, NAR reported that 79% of consumers have a greater desire to be home since completing the project, and the project holds a perfect Joy Score of 10.


Flooring Matters

Your floors play a critical role in your home’s aesthetic and functionality. The right flooring can set the tone for a room, making it look more spacious, welcoming, or luxurious. Hardwood flooring is a popular choice that’s durable and comes in a variety of choices.


Properly chosen and well-maintained hardwood flooring can increase your property’s worth. According to NAR, the flooring options with the best ROI are new wood flooring (118% ROI) and hardwood flooring refinish (147% ROI). Once you’ve installed your favorite style, you can maintain it’s new-look finish with these steps.


Stay Cozy and Efficient

While it may not add to your home’s visual appeal, an insulation upgrade is one of the wisest investments you can make as a homeowner. The insulation in your home directly affects its energy efficiency and overall comfort, so improving it can lead to significant cost savings and increased home value.


Energy efficiency is a critical factor in home valuation for today’s prospective buyers, and gaining energy efficiency is the main reason consumers choose to update their home’s insulation. Properties that are well-insulated have lower energy bills and a more comfortable living environment. Because of the importance it holds, NAR reports updating your insulation brings 100% cost recovery if you choose to sell your home, so it’s basically an upgrade that’s “on the house!”


Entertain in Style

As your life evolves, so can your preferences for what features you want in your home. While an outdoor kitchen may not have been on your original house checklist, their increased popularity seems to reflect in the investment value for homeowners.


With the cost recovery returning at 100%, the bonus of this feature is the statement of luxury and convenience. An outdoor kitchen allows you to entertain while preparing meals, all in the open air. It seems that just seeing it at your home improves your mood, as 81% of consumers feel a sense of major accomplishment when they think of the project. Homeowners also revealed this project resonated the most with them, as 99% said their desire to be home increased since completing their outdoor kitchen.


Expanding the Outdoors

Expanding your living space is not limited to just outdoor kitchens. Outdoor areas can be multifunctional, providing relaxation, dining space, or even entertainment. A new patio can enhance your quality of life and your property’s appeal to future buyers.


NAR revealed that 71% of homeowners have an increased sense of enjoyment at home since completing their patios. Reported to return 95% of your investment, it’s higher than the 89% ROI a new wood deck offers.


Synergy for Maximum Impact

Each of these projects has its own impact on your lifestyle and your house’s market value. When approached strategically, these projects can create a harmonious living space, appealing to you and potential buyers. While you may not have the time and resources to complete every one, any combination of these updates could help your house become the complete package and command a premium price.



 

Sources:

[1] National Association of Realtors® (NAR) Research Group, “2022 Remodeling Impact Report.”

[2] NAR Research Group, “2023 Remodeling Impact Report: Outdoor Features.”



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