Do Renovations Actually Increase Your Home’s Value?

By Alex Capozzolo

Alex Capozzolo is a real estate investor, house flipper, and licensed real estate agent  for SD House Guys based in San Diego, CA. He manages 17 rental units and has been writing for the real estate industry for over four years. In his spare time, he enjoys surfing, hiking, and traveling. Contact him at info@sdhouseguys.com. 

Home renovations can dramatically change the look and feel of a home. Although they are nice to look at, do renovations actually add value to your house? Sadly, it’s a myth that all remodeling efforts increase your home’s price tag. Even if you absolutely love the look of a new addition to your home, that doesn’t always equate to more equity.

Today, we will review which renovations add value to your home and why they are worth pursuing.

Many first-time homeowners become immediately interested in renovating their property with the goal of increasing its value. Succumbing to “shiny object syndrome” while holding a hammer is not a good idea! Before undertaking a massive house flip, ask yourself if it will actually increase your property’s value.

Why don’t all renovations add value to a property? Well, it’s partially because personal preferences in real estate vary. While you may be dead set on a particular kitchen layout, it may not appeal to everyone else.

To avoid diving into home renovations that aren’t worth it, consider the appearance of other homes in the area. Often, if your renovation is too unique, the general market may not find it appealing. When improving your home, stick to layouts and designs commonly found in your neighborhood. Examine the top-selling homes in the vicinity and check out how they were renovated.

For homeowners planning to sell their houses soon, it’s crucial not to spoil your profits with unnecessary renovations. Finding the right buyer can prove to be tougher than anticipated, so it’s important to know your audience when renovating an entire property. Keep things simple unless you really know your stuff. A simple design done the right way can stand out more than a unique design when selling.

Is renovating a kitchen worth paying for? While people use their kitchens daily, renovating one isn’t cheap. A complete kitchen renovation can cost over $10,000, depending on factors such as size, layout, and materials. Particularly when you start adding stylish countertops, upgrading your kitchen can be a substantial expense.

Fortunately, for homeowners who decide to renovate their kitchen, they are likely to see a return on investment (ROI). New kitchens are highly appealing to house buyers and often one of the first areas they focus on when touring a property for sale. If you aim to sell your house for the highest possible price, remodeling your kitchen is a good place to start.

Bathrooms are not a room to skimp on when renovating a home. Along with the kitchen, bathrooms significantly impact a home’s value. They are used daily, and people appreciate having a nice bathroom, especially when there are multiple ones for guests.

There are affordable ways to improve your bathroom while adding value to your home. For example, switching out the vanity is an option if you don’t want a complete overhaul but still want to revamp the bathroom’s overall appearance. Choosing different paint color combinations can also provide a fresh look. In most cases, well-executed bathroom renovations are financially worthwhile.

Adding a pool to your backyard is a great feature that many homeowners enjoy. Fortunately, it can also increase the value of your house. Although a pool is a significant upfront expense, it can increase your home’s selling price.

Of course, not all regions have a high demand for backyard pools. However, in areas with warmer climates such as Southern California or Arizona, they are often considered essential. Although installing a pool is a substantial initial investment, as long as you maintain it properly, you’ll see an ROI when putting your home on the market.