With mortgage rates and home prices remaining high with little sign of relief in 2023, more homeowners are holding off on buying and looking to renovate their current properties. According to a recent Thumbtack survey, 9 out of 10 current homeowners plan to improve their homes in some way over the next year, and another 65% plan to transform their houses into their "dream homes." So, when it is time to purchase a new home and sell your current one, what home improvements will provide the best ROI? Here are six renovations identified in research from HomeLight that will increase your home's value:
- Boost your curb appeal. First impressions are important, and that goes for houses too. Projects like essential yard care (cutting the grass, weed control, fertilization), adding mulch, and tidying the landscape with shrubs and flower beds can significantly add to your ROI. And adding fresh exterior paint, a new garage door, or a new roof will increase it even more.
- Create a more functional floor plan. Small bathrooms and kitchens are out, and open spaces are in. Rework your floor plan for larger bathrooms, kitchens connected to other rooms, finished basements, and walk-in closets.
- Upgrade to luxurious bathrooms. . People like the spa experience; the more you can give your bathroom that feeling, the better. Consider adding rain shower heads, double-sink vanities, extra storage, and soaking tubs.
- Install a kitchen island or walk-in pantry. More people are cooking at home, and making the experience more enjoyable can add significant value. Trends in kitchen improvements include adding multiple sinks, a walk-in pantry, a kitchen island, and a convection microwave.
- Build or convert a home office. The Covid-19 pandemic forced quite a few people to work from home, and while many are returning to the office, a large number are still choosing to remain working from home. The HomeLight survey found that 69% of buyers surveyed have at least one household member working from home. You may want to consider transforming a guest room into an office.
- Upgrade your outdoor space. In addition to landscaping, you may want to consider adding or updating some exterior features. According to Principia Consulting, 31% of homeowners built a new deck in 2020 when none existed, up from 25% the year prior. And depending on where you live, adding a new pool or hot tub can increase the value of your home as much as 7%.
If you're planning to renovate your home in 2023 and need financing, give to the experts at NASB a call at 855-465-0753 to help secure a cash-out refinance loan