Home isn’t just “where the heart is” or “where you hang your hat” — it’s also where you invest a significant amount of your income. Just as routine maintenance keeps your house in excellent shape, smart upgrades and timely improvements can boost the value of your home.
Every home renovation project is unique, but they all share similar objectives: to improve flow, feel, and comfort through beautiful design; to expand usable space and maximize functionality, and to grow and strengthen your investment.
But when it comes to increasing the market value to your home, not all remodeling projects are created equal — some transfer a higher percentage of their cost into added value, while others provide a much lower return on investment (ROI).
The following remodeling projects represent the most commonly desired home improvements that offer the highest ROI in the Wheaton and Glen Ellyn housing markets:
Home Exterior Revamp
First impressions can be everything, especially when it comes to your home’s exterior — no one should hide beautifully designed interior spaces behind an outdated or weathered façade.
Luckily, many of the top-ranking ROI projects are all about boosting curb appeal. Exterior wall improvements are particularly cost-effective; according to Remodeling Magazine’s 2020 Cost Versus Value Report, installing manufactured stone veneer along the bottom third of the front side of your house almost pays for itself, as you’ll recover about 91% of its cost in added home value.
That means if you pay $10,000 to add a stone veneer to the front of your home, you can expect the project to boost the value of your home by about $9,100.
By comparison, replacing all of the fiber-cement or vinyl siding on your house provides an average ROI of 68% or about $2.70 of added value for every $4 spent on the project.
Any improvements you make in your kitchen are well worth the time and effort — whether you plan to move in the near future or stay put for years to come, everyone loves a modern kitchen with updated design features and state-of-the-art finishes.
You can expect to recoup roughly 52% to 72% of your investment on a kitchen remodel, but bigger isn’t necessarily better when it comes to optimizing your ROI.
In a mid-priced house, a major kitchen remodel that costs about $81,000 boosts home value by roughly $47,000 (58% ROI); a less intensive renovation that costs $29,500 adds about $21,000 of value to your home (over 70% ROI).
Spending your renovation dollars wisely is key to getting the most bang for your buck without sacrificing a higher ROI in the process. If the flow of your kitchen works well for you, refinishing your existing cabinets and upgrading your appliances can give your kitchen a much-needed facelift; use the remainder of your budget to install a new sink and faucet, replace old cabinet hardware, and trade outdated lighting for stylish, energy-efficient fixtures.
However, you envision your updated kitchen, be sure to leave room in your renovation budget for the features that matter most to you — whether it’s new flooring, modern countertops, a tile backsplash, or more workspace.
Main Bathroom Update
The bathroom is another space where it’s easy to put your renovation dollars to good use. Unlike the kitchen, however, upscale projects that expand existing space and include more luxury features tend to have a higher ROI than midrange projects that just revamp existing space and focus on the essentials in the Chicagoland area.
Even so, the difference isn’t extreme — a midrange bathroom renovation that costs $27,500 offers a 53% ROI, boosting the value of your home by over $14,600. An upscale bathroom renovation that costs $82,000 increases home value by over $44,000, providing a 54% ROI.
The bottom line? Paying extra for design and luxury in your main bath is worth it but will ultimately be dependent on your budget and what your wants, as well as needs, are for the space.
Your Home, Your Renovation
There are lots of ways to improve your home and increase its value in the process — adding a deck redefines your outdoor living space and delivers an average 64% ROI; a master suite addition comes with a 49% (upscale) to 52% (midrange) ROI, depending on its size and design details.
Whether you’d like to renovate your exterior, transform your kitchen, update your bathroom, finish your basement, or build an addition, the team at Hogan Design & Construction can help you understand your options and find the design solutions that fit your budget and your vision.