Top 5 Remodeling Ideas for Increased Home Value

If you’re thinking of taking on a major home remodel, you may find yourself wondering if it’s worth the price tag. For homeowners who are going to stay in their homes for many years, the satisfaction that you’ll get from remodeling your space is enough to make the cost worth it. However, for homeowners who are about to sell their property, not all remodeling ideas will go the distance.

In the 2023 report from Remodeling, they detail exactly how much of a return on investment, or ROI, homeowners can expect from undergoing different remodeling projects. In this article, we’ll take a look at the 5 remodels they’ve identified as having the highest ROI across the Pacific region (California, Oregon, Washington, and Alaska). Plus, we’ll reveal what project actually had the lowest ROI in the Pacific for 2023.

In their report, Remodeling averaged out costs and expected ROI’s from across the Pacific Region. So, this list will help you get some good inspiration for the types of projects to take on, but your exact costs and results will vary depending on where you’re remodeling.

So, without further ado, let’s dive into the top 5 remodeling ideas to increase your home value, starting at #5.

 

#5 – Bathroom Remodel (Midrange) | 62.5% ROI

If you go in for midrange upgrades and aesthetic fixes, you’re sure to enjoy both your bathroom and its new value. According to Remodeling, a midrange bathroom won’t quite pay itself off, but it features a relatively low upfront cost.

For a midrange bathroom makeover that they estimate to be about $27,000, you’ll be able to increase your overall home value by nearly $17,000. The remodel example used in the study featured changes like a 30 x 60” tub, new single-lever temperature control, a new white toilet, and a solid-surface vanity counter with an integral sink. Plus, they also include new wallpaper, a new ceramic tile floor, and a recessed medicine cabinet.

It may not have an upscale price tag, but this remodel is one that will make an outdated home feel much more luxurious. Just don’t go too wild – another estimator describes how single ticket novelty items like smart toilets or gadgets may cost a lot, but they won’t bring in nearly as much return on investment as a midrange bathroom like this one.

 

#4 – Window Replacement (Vinyl) | 68.2% ROI

If you’re looking for a slightly lower cost remodel, Vinyl window replacements are a great option. Remodeling values a project for replacing ten 3 x 5’ double-hung windows with vinyl windows at around $22,000, with a return of about $15,000. One way to keep costs down is to focus on matching the exterior trims to your existing ones, rather than trying to match both the exteriors and interiors.

Vinyl windows are a great investment in the long term, too. They can last over 20 years and will save you and the prospective buyer money on energy bills due to the insulation in the frame of the window!

 

#3 – Minor Kitchen Remodel (Midrange) | 79.2% ROI

Do you have a dated kitchen that you’re not sure what to do with? Refacing and refinishing will take you a long way in terms of home value.

By keeping the cabinets where they are and changing out the panels, drawer fronts, and hardware, you can make a dated kitchen feel a lot more modern. Plus, installing resilient flooring and repainting the walls, trim, and ceiling of your kitchen will all work wonders to bring in more value to your home.

Lastly, switch out your old appliances for their new, energy-efficient counterparts. Installing a new sink, faucet, cooktop, oven range, and refrigerator will complete the refreshed look and feel of your kitchen.

However, like a bathroom remodel, be sure to shoot for energy-efficient, midrange products instead of top-of-the-line. The closer you get to the fanciest models, the higher your price tag will rise, minimizing your ROI overall.

 

#2 – Exterior Improvements | 84.6 – 96.8% ROI

In the Pacific region, exterior refreshes make up most of the top ten home remodels for ROI. These projects range in cost from around $3,800 to just under $20,000. In order of least to greatest ROI, the projects are: adding manufactured stone veneer, replacing your siding with fiber-cement, upgrading to a steel entry door, replacing your garage door, and upgrading to vinyl siding. For the full breakdown of cost versus ROI, check out the complete report.

So why does exterior improvement rank so highly on the report? According to Remodeling, to the realtors they surveyed about resale value, curb appeal almost always comes first. They found that, “if [the prospective buyer’s] first impression is a run-down exterior, they tend to enter the property wary and reluctant to spend large on the property. If, on the other hand, the home looks well taken care of, they enter with a more positive view from the outset.”

So, if you are selling your home soon and want to do something impactful, exterior refreshes are a great way to go.

 

#1 – HVAC Conversion (Electrification) | 104.8% ROI

HVAC conversions may seem pricey, but for a resale value of over 19k, they offer the best ROI for a home remodel. 

Finally, in #1 for ROI on a home remodel is an HVAC upgrade! Many older homes have an existing furnace that runs on gas or fossil fuels rather than electricity. By replacing your old HVAC with an electric unit, you’ll increase the HVAC’s safety, efficiency, and lifespan – all very attractive features to a prospective buyer who’s in it for the long run.

The study’s proposed remodel includes replacing the HVAC, as well as removing existing grilles and installing new line sets and wall units. Then, just add some touchups to drywall and paint coverage, and you’ve got a remodel project that will bring in more value than it costs to set up.

But that’s not all – let’s take a look at 2023’s remodeling project with the smallest ROI.

 

Last Place – Primary Suite Addition (Upscale) | 19.9% ROI

Redoing your master bedroom and bathroom as a suite addition will cost you, especially when it comes to resale value. In their 2023 study, Remodeling defined the upscale suite addition as a 32 x 20 foot addition complete with a walk-in closet, spacious bathroom with a walk-in, frameless glass shower, fireplace, bookcase, a minibar, and more.

Despite how luxurious this project sounds, the value it brings in is poorly valued. For a project like this one that could cost you upwards of $325,000, prospective buyers value it at only around $70,000.  So, if you’re thinking about undergoing a major luxury addition in the name of resale, you may want to scale back a bit.

 

Other Tips

So, there you have it! Those are the top 5 home remodels for increased home value in 2023. Keep in mind, though, that our article focuses on data from the Pacific region. The exact project costs and ROI will vary from state to state, and quite possibly even county to county. For instance, home remodels in the Pacific Northwest average out to be less expensive than a remodel in the San Francisco Bay Area.

In general, though, some key trends from this year are to focus on energy efficiency and long-term solutions rather than fully personalized rooms or big-ticket items. One other key tip for maximizing ROI is to be wary of built-in electronics. While they may seem handy, buyers aren’t very keen on those kinds of features due to the ongoing maintenance they require.

Lastly, keep in mind that this list is all about what interests buyers right now. So, if you’re not planning to sell your home for a few years and your home is in need of a refresh, you may as well get the most out of the home you have!

 

NOTE: Costs in this article were provided from Pacific averages generated by Remodeling in 2023, and may not be representative of expected costs for remodels in California. Contact a local remodeler to get an exact quote for what one of these projects would cost in your area.