Home Renovations That Offer Return on Investment

Embarking on home renovations isn’t just about enhancing your living space; it's also an investment in your property's value. Whether you're gearing up to sell or simply aiming to create a more comfortable and stylish home, strategic renovations can offer a substantial return on investment (ROI). 

As a remodeler, there are tried and true home improvement projects known for their potential to elevate both aesthetics and property worth. From kitchen overhauls to energy-efficient upgrades, let’s talk about the renovations that can not only transform your living space but also prove to be wise financial decisions in the long run. Here are some of my favorites that strike the perfect balance between functionality and added value:

Kitchen Remodeling: upgrading countertops, cabinets, appliances, and lighting can enhance both aesthetics and functionality.

Bathroom Renovation: modernizing bathrooms with new fixtures, tiles, and amenities can add value to your home.

Curb Appeal Improvements: enhancing the exterior with landscaping, fresh paint, and an inviting entryway can significantly boost curb appeal.

Energy-Efficient Upgrades: installing energy-efficient windows, doors, insulation, and HVAC systems can attract eco-conscious buyers and reduce long-term utility costs.

Basement Finishing: converting a basement into a usable living space, such as an extra bedroom, office, or entertainment area, can add square footage and appeal.

Attic Insulation: adding insulation to the attic can improve energy efficiency and appeal to buyers looking for homes with lower utility bills.

Deck or Patio Addition: outdoor living spaces can be attractive to potential buyers, especially in areas with favorable climates.

Smart Home Upgrades: adding smart home features, such as a programmable thermostat, security system, or lighting, can make your home more appealing to tech-savvy buyers.

Garage Door Replacement: upgrading the garage door not only enhances curb appeal but also improves energy efficiency and security.

Hardwood Flooring Installation: many homebuyers prefer hardwood floors, so replacing carpet with hardwood can be a wise investment.

Additional Bedroom: adding an extra bathroom can significantly increase a home's value, particularly if it’s a flexible space that can be used as an office.

Painting: a fresh coat of paint, both inside and outside, can make a home look well-maintained and appealing.

Before embarking on any renovation project, it's crucial to research local market trends and consult with real estate professionals to ensure that your investment aligns with the preferences of potential buyers in your area. Keep in mind that each improvement is an investment with the potential for lasting returns. Whether it's the heart of the home, a welcoming curb appeal, or the integration of smart technologies, strategic renovations not only enhance your living experience but also position your property as sought-after in the real estate market. 

Bob O'Donnell is the owner of O'Donnell Bros, Inc., a Bristol-based home improvement company established in 1975. Email your questions for Bob to info@odonnellbros.com with the subject line “Ask the Pro”. All questions may be considered for publication. To contact Bob for your remodeling needs, call O'Donnell Bros, Inc. at (860) 589-5155 or visit www.odonnellbros.com. Advice is for guidance only.

The Five Remodeling Jobs with the Worst Returns on Investment

 It’s the first week of March and as spring fever starts to creep into many people’s minds, so too does remodeling projects. Spring is also known as real estate season, which means that many homeowners are looking for small improvements they can make on their properties to increase their home’s sale price.

Back in January, Remodeling magazine put out their annual Cost versus Value Report, where they compared the average cost for 30 remodeling projects with the value those projects retained at resale. When the report came out, I covered the project with the top resale value, which was added to the list for the first time and shot to the top with a 162.2% return on investment. That project was adding fiberglass insulation to your attic and I wasn’t surprised by the result. Adding insulation to your attic is easy, cost effective and will save you in heating and cooling bills for years to come. Plus with 75% of homes in our area deprived by under-insulation, it’s an investment that can make a home stand apart from the resale competition.

So we know what the best investment is, but what about the worst? The five projects with the lowest resale value in Hartford County might surprise you!

Number five is a family room addition. With an average cost of $96,298 in Hartford County, a family room addition offers an average resale value of under $48,000, making the cost recouped a mere 49.6%. 

Number four is a backup power generator. Many homeowners think these will come in handy, and often times they do, especially with our wild weather. But with a cost average of $13,337 and a resale value of $6,458, you’ll only end up getting back 48.4% of the money you put into it.

Bathroom facelifts are always popular on the list of remodeling for resale projects but don’t expect to make your money back on this one. With an average spend of $19,384 and a resale value of $9,318, that job will get you back just over 48% of the cost.

Well, what about the basement? A man cave or rec room might sound like a good idea, but it will only get you back 45% of your investment, according to the report. This is based on a spend of $75,063, which equates to a resale value of $33,750. Yikes!

So if these popular remodels occupy spots five through two, what could possibly be number one? Believe it or not, the worst return on investment would be the coveted extra bathroom, netting home sellers only 43.6% of the average $45,904 put into it. It’s a big job too!

With spring, and real estate season on the way, it’s a good idea to know what fix-it jobs will offer your home real value, especially if you’re in the market to sell. You can view the Remodeling Cost versus Value Report in its entirety by visiting remodeling.hw.net and filtering the report by region.