Home Attributes Adding Value 2023
Although the housing market seems to be fluctuating daily, there are a few home improvements and additions that are consistently good investments. Whether you’re adding on to your existing home or planning a new home with superior additions, be aware of the most valuable improvements and additions: outdoor spaces, kitchen makeovers, and bathroom alterations. While these categories change year over year, they continue to be a phenomenal investment. Continue reading to learn the facts and figures surrounding these home improvements.
Outdoor Spaces
In a recent educational webinar lead by the Home Improvement Research Institute (HIRI), our team along with many other industry professionals heard from Danny Lipford (Today’s Homeowner), Dave King (HIRI), and Eric Voyer (TraQline) regarding home improvements and their anticipated trend lines over the next three to five years. One of the most notable callouts by their discussion was the necessity of outdoor living spaces. The number of outdoor living spaces increased dramatically over the pandemic, and has not changed much since. During the pandemic, people realized there was more usable home space: the outdoors. From screened porches to fire pits, homeowners utilized their time at home to complete smaller and larger diy projects, many of which resulted in new outdoor living spaces.
As supported by previous research, adding a screened porch can increase one’s home value by 70% or more (Archadeck, Discover, & HGTV). While this is exceptional, there are smaller, more cost-effective projects that can be completed towards the outdoor living space that will still increase the overall value of one’s home. Landscaping, fresh coats of paint/deck stain, new outdoor seating arrangements, and so many more minor updates can truly have a big impact on the value of your home. The smallest, easiest projects (like deep-cleaning and fresh paint) are by far the cheapest ways to increase home value, and homeowners are estimated to recoup nearly 96% of sunk costs (HGTV). The larger, more difficult projects (like installation of a screened porch or construction of a deck) are by far the most expensive ways to increase home value, but homeowners are still estimated to recoup nearly 90% of sunk costs (HGTV). The overall moral is that outdoor projects, be those landscaping, small, diy additions, or large, contractor-hired installations, are money well-spent and will result in a higher-than-average return on investment (ROI).
Kitchen Makeovers
Similarly to outdoor living spaces, kitchen improvements and makeovers were regularly mentioned during the HIRI webinar that happened towards the end of April. The home improvement specialists noted how vital these changes were towards the overall industry, and how beneficial they could be towards one’s home value. Whether merely a new appliance or an entire kitchen remodel, home value increased. One of the most interesting insights presented during this discussion was that homeowners were willing and eager to do home improvement projects presently if the cost was at or below $5,000. Comparatively, homeowners that were expecting projects to be above $5,000 thought performing the project later on in the year was a smarter decision (despite the specialists disclosing that virtually no improvement project was less than $5,000).
As demonstrated by former home improvement research, kitchen improvements, especially smaller ones (like the ones homeowners anticipate being $5,000 or less) can dramatically improve one’s home value. It is also estimated that nearly 99% of sunk costs are recouped with minor kitchen improvements (HGTV). Smaller changes are often defined by industry professionals as: resurfaced counters/cabinets, new appliances and fixtures, resealed countertops, new or deep-cleaned flooring, and technological enhancements. The main goal of kitchen remodeling should be to enhance aesthetic appeal and functionality, not increase aggravation or necessary maintenance.
Bathroom Alterations
One of the final key trends mentioned by the home improvement specialists during the HIRI webinar was the improvement and increased ROI of bathroom alterations. By upgrading existing bathroom fixtures, repainting walls, replacing the flooring, and/or enhancing the overall aesthetic of the room, industry professionals agree that your home value will increase. This can also be done for reasonable costs, given the post-pandemic trend of homeowners using varying material suppliers for lower costs with the same anticipated quality.
Further exclaimed by past home improvement research, bathroom alterations are some of the most lucrative home improvement projects one can undertake. It is estimated that homeowners recoup nearly 100% of sunk costs with minor bathroom remodels (HGTV). While bathroom fixture trends are the most volatile, they can be the most beneficial changes to increase home value. If you know you’re selling soon, be sure to update your bathroom before listing, as it will be worthwhile in the long run.
