Renovating your home can be a huge undertaking and not without its headaches — but it can really pay off in the long run.
While there are some home renovations that could be more trouble than they’re worth, there are others that make all the financial sense in the world.
The reason is because of resale value. Homeowners interested in getting much of their money back at resale will want to focus on projects that raise home values, according to the National Association of Realtors.
These 3 Home Renovations Are Worth the Cost
The group’s 2019 Remodeling Impact Report looked at three factors when determining which projects boosted home values:
- The typical costs associated with 20 home remodeling projects based on the National Association of the Remodeling Industry (NARI)
- The appeal the projects would likely have with potential buyers
- The seller’s recovery costs estimated by Realtors
Let’s look at three home renovations that add value, according to the report:
An HVAC replacement is estimated to cost $8,200, according to NARI remodelers.
Cost recovery: $7,000
Percent of value recovered from the project: 85%
Around 20% of Realtors have recommended that buyers complete this project before trying to sell, according to the report, and 7% said an HVAC replacement helped close the sale.
Complete Kitchen Renovation
A complete kitchen renovation is estimated to cost $68,000, according to NARI remodelers.
Cost recovery: $40,000
Percent of value recovered from the project: 59%
Around 12% of Realtors have recommended that buyers complete this project before trying to sell and 10% said a complete kitchen renovation helped close the sale.
The report says a kitchen upgrade is estimated to cost $38,300.
Cost recovery: $20,000
Percent of value recovered from the project: 52%
Around 40% of Realtors have recommended that buyers complete this project before trying to sell and 20% said a kitchen upgrade helped close the sale.
For more project analysis, check out the full Remodeling Impact Report.
Of course, remodeling costs are influenced by several factors, including materials, condition of the home and homeowner preferences.
Clark: How Home Renovation Can Work for You
Money expert Clark Howard says small changes to your home could be DIY projects but the larger ones are best left up to professionals, especially when it comes to fixer-uppers.
If you’re good with your hands and have experience in building, Clark says, you’re the kind of person that can really save money during a home renovation.
“By doing the work themselves, those owners can have instant equity in the home if they’re going to stay in it, or have a good return on it if they sell,” Clark says.