In 2024, the average return on the most common remodeling projects came in at about 75% nationally, according to the Remodeling 2024 Cost vs. Value Report, an assessment of typical household remodeling projects. From 2021 to 2023, the average ROI on remodeling projects saw a decline from 63.4% in 2021 to 60.5% in 2023. Hopefully, the 75% average ROI in 2024 suggests that homeowners will be rewarded again as they remodel or upgrade and then sell. Of course, not all home renovations are created equal - to twist a phrase from our founding fathers. If you are thinking of upgrading your home, where should you spend your money?
1. Curb Appeal
We all know that first impressions are crucial and you only have a few seconds to make a good one - so..... if you are planning on putting your home on the market soon, pay attention to curb appeal. Make those buyers get out of their cars rather than just keep on driving past!
Attend to basic yard care (cut grass, weed control, fertilization)
- Spread bark mulch in a conventional color and texture.
- Tidy the landscaping (shrubs, walkway, and flower beds) Power wash the sidewalks if necessary.
- Solar lighting on walkways or driveway
The 2024 Cost vs. Value Report found that you can often get the best ROI for renovations that buyers see before they walk through the front door — replacing your garage door, updating the siding, or adding a deck, for example, can lead to a higher ROI.
New siding or trim is expensive but it can add significantly to the value of your home because it changes its look. Vertical board and batten siding can create that modern farmhouse look that you see on every other street in Bethesda now - and don't forget the black trim! For more tips on upping your curb appeal, click here.
If you can't afford new siding, please please please scrape and paint any chipping or flaking exterior paint. Freshen up your front door and polish your mail box. Wash the windows or clean the screens and add a fresh flower pot or two. While the buyer's Realtor is fumbling with the keys, guess what the buyer is doing. Looking at the exterior of your house and mentally tallying up what the cost of repairs is going to be. Will they even walk in the front door?
2. Create a more functional floor plan
If you love your home and plan on staying for a while, you should think about how your living space works for you now. Is it time to create a more functional floor plan? The Leave It To Beaver lifestyle of dinner with napkins in the dining room is not our lifestyle. Does your home match your lifestyle? Maybe it's time to renovate - and the good news is that livable square footage often increases your appraised value which can be good when it comes time to sell.
Stand alone kitchens or bathrooms on the smaller side are seen as outdated, and buyers aren’t as willing to make them work as they used to be. Consider reworking the floor plan or adding additional space to make the home more functional for modern living. Larger bathrooms, open kitchens with more prep space and walk in closets will likely increase your enjoyment of your home and will certainly make your home more marketable when it comes time to sell.
One of the best ROI is finishing off an unfinished unfinished basement, adding flooring, drywall, and other touches to make it a livable space. If you can add in a full bath then you have created a potential in law suite or man cave. If you can't add more space to your home, then make it more functional by repurposing unused or underutilized space. An unused bedroom can become a home office or craft space and that dining room can certainly serve other purposes - maybe a tv room to watch Leave It to Beaver and Father Knows Best.
If you can’t add more space to the home, make it more functional by converting unused spaces. Consider turning an unused home office into a bedroom or reworking an unused living room into a flex space.
3. Luxurious bathrooms
Buyers quickly fall in love with bathrooms that feel like a spa experience. Consider upgrades such as rain shower heads, double-sink vanities, extra storage, soaking tubs, and anything else that contributes to a modern, spa-like experience. Look for ways to create the illusion of more space by adding mirrors or reworking the floor plan. This upgrade is really tempting to me since I live in a solidly built 1959 colonial with tiny bathrooms. I have no way to expand the space but I can certainly make my shower more enjoyable and the storage more efficient! Definitely this is part of my to do list!
4. Upgrades to the Kitchen
We know that upgraded kitchens are always popular. Consider adding an extra sink and dishwasher, a new fridge and flexible pantry space. The good news is that we are slowly moving away from all white kitchens and embracing a variety of countertops.
5. Modify your home for aging-in-place or intergenerational living
Housing market uncertainty means homeowners, including retirees, should adjust their expectations. At the beginning of 2023, 39% of HomeLight agents surveyed predicted that retirees would opt to modify their current home to age in place rather than sell. This trend can be expected to continue in 2024.
As a result, intergenerational living will become more popular, too. Of the agents surveyed, 22% think that renovations will increase to make way for children moving in with their older parents.
An accessory dwelling unit (ADU) is an innovative and affordable housing solution in high-cost areas, plus a way to house an extended family or add rental income to your property.
More buyers are looking for mid-price homes with ADUs, according to the 2023 Agent Insight Report. According to the L.A. Times, ADUs can add up to 24% to the value of a home. Even people who don’t plan to use an ADU as housing love the space as a home office suite.
However, building an ADU can get expensive. The average cost to build an ADU is $180,000, but the costs can range quite a bit. The cost can be impacted by the type of ADU you build, material type, design of the space, labor costs, and the systems you equip the unit with.
6. Make your mudroom bigger and more functional
A mudroom or foyer with a place to drop off the day’s gear has long been a home design perk, especially in areas where storing winter shoes and boots is a must. Adding a bench, hooks, and built-in cubbies to a small foyer or a garage entrance creates this natural stopping point and a perceived value-add. Mudrooms are a great addition for families with young children. That cubby area alleviates some of those pre-school departure anxieties when the house is torn apart looking for the missing back pack or school project! Mudrooms aren't just for families with young children. Dog families love having that mudroom with space to clean off muddy paws after a raining day and to hang up wet raincoats.
One of my functions as a Realtor is to have a good referral list. If you live in Bethesda and want to improve your home, give me a call at 240-401-5577 or email me at lise@lisehowe.com. I am always happy to share some of my contractors with you!
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