Home Remodeling ROI: A Room-By-Room Guide

What’s the best bang for your buck home remodel project? There are many remodeling options that can add value to your home and make those restyled spaces more enjoyable. Whether you’re remodeling before a sale or simply making your space suit your current needs, it’s worth prioritizing the best home remodeling ROI. 

Count on Daniels Design & Remodeling to give you all the information you need to make the best decision for your remodeling project. Start your research by scheduling a conversation with us today.

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Home Renovations with The Best ROI

Investing in your home is a smart way to enhance your living space today and increase resale value later. Your home remodeling ROI may vary, but these industry averages offer excellent insight into the benefits of various home remodeling projects.

Kitchen Remodeling ROI

Investing in a more functional and aesthetically pleasing kitchen is a smart investment. Not all renovations are created equal. Depending on how many changes are made, the ROI on your kitchen may differ slightly. 

Major vs. Minor Kitchen Remodel: What’s the Difference?

A major kitchen remodel will typically involve substantial structural changes, such as removing walls or cabinetry and replacing all appliances. This level of renovation involves considerable design and architectural changes resulting in a totally reimagined space. 

A minor kitchen remodel will focus  specifically on a few core elements, such as replacing countertops and cabinetry. In most cases, minor kitchen renovations won’t include structural changes. 

What is the ROI on a kitchen remodel by size? Here’s how it breaks down.

Major Kitchen Remodel ROI – 60.5 percent

Doing a major remodel on your kitchen will improve  its look, energy efficiency, and functionality. Here are a few options for your major kitchen remodel:

• Install an island in the center of the kitchen.
• Replace the cabinets with custom wood cabinets.
• Add additional storage space.
• Replace the countertops.
• Replace a standard sink with a single-lever faucet with a double-tub, stainless steel sink.
• Replace the fixtures and appliances with newer, more energy-efficient models.
• Install a built-in microwave.
• Replace the flooring with new, more resilient flooring.
• Add a fresh coat of paint to the ceiling, walls, and trim.
• Install custom lighting

Minor Kitchen Remodel ROI: 81.8 percent

A minor kitchen remodel is giving your kitchen a facelift and enhancing its functionality. Here are a few options for your minor kitchen remodel in Fairfax or elsewhere:

• Replace old, outdated wood panels and drawer fronts with new ones, including the hardware, but leave the existing cabinet boxes in place.
• Replace the floor with newer, more resilient flooring.
• Replace the oven range/cooktop and refrigerator with more efficient models.
• Replace old laminate countertops.
• Replace the faucet and sink.
  

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Bathroom Remodel ROI: 73.5%

There are many ways to remodel and enhance your bathroom. From creating more functional space to introducing larger, more luxurious showers and tubs, bathroom renovations offer plenty of options for homeowners looking to reimagine their space. Here are a few of the tasks a typical bathroom remodeling project will consist of:

• Replace the floors with ceramic tile flooring or other materials.
• Replace the shower tiles with ceramic tile
• Replace the bathtub with a porcelain-on-steel tub, walk-in shower, or jet shower.
• Replace all the fixtures with low-flow or energy-efficient fixtures, including the shower, toilet, and sink.
• Replace the sink/vanity with a solid-surface vanity counter that has an integrated sink.
• Add a recessed medicine cabinet with updated lighting.

Universal Design Bathroom Return on Investment: 74 percent

Remodeling with an aging-in-place or universal design focus ensures a safe and accessible bathroom for individuals of all ages and abilities. Reduce the impact of mobility limitations and redesign your bathroom to serve you safely for decades to come. Some of the core elements of an inclusive bathroom remodel include:

• Widen the doorway.
• Move the outlets and electrical switches to sitting level.
• Reconfigure the storage so it’s accessible at sitting level.
• Reinforce the bathroom walls so that towel hooks, seats, and grab bars can be safely installed.
• Replace the bathtub with a walk-in shower that has grab bars and a fold-down seat.
• Replace the toilet with a taller one and install a grab bar on the wall.
• Replace the bathroom vanity with a sink that you can roll a wheelchair under.
• Replace the sink’s handles with lever handles.
• Replace the overhead lighting with LED lights equivalent to about 100 watts.
  

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Master Suite Addition ROI – 57.2 percent

More private space to relax and unwind! Unlike a master bedroom renovation, adding a master suite to your home means adding a master bedroom with an attached bathroom. The average size of a master suite addition is 24 feet by 16 feet, providing additional room for seating, a luxurious bathtub, or another dedicated purpose.

 Here’s what the master suite addition could entail:

• Carpeting in the bedroom.
• Ceramic tile in the bathroom.
• A walk-in closet or dressing area.
• A free-standing tub to soak in.
• A separate shower with ceramic tile.
• A double-bowl vanity.
• A solid-surface countertop.
• Painted walls, trim,
•  and ceiling.
• General lighting and spotlighting.
  
  

Basement Remodeling ROI – 70-75 percent

Remodeling living spaces like basements, studies, or recreation rooms provides more functional space for entertaining and relaxing. Remodeling an unfinished basement is an excellent option and offers between 70-75% ROI. Completing a basement remodeling or living space renovation involves many design choices, but often includes:

• Replacing flooring. 
• Building a custom basement bar.
• Adding a private exterior entryway.
• Creating theater-style seating.
• Building walls to subdivide the space.
• Installing a bathroom.
• Improving lighting. 
  

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Is Remodeling Your Home a Good Investment?

Remodeling your home is a sound financial decision. Unlike most investments, which take a long time to pay for themselves, investing in your home offers immediate benefits like enhanced comfort and functionality for your family. 

Your renovation return on investment isn’t limited to the project you choose. Other factors impact your ROI, including:

• Location – The property values around your home will impact the total resale value of your home. For example, investing $100,000 into a property where the median home value is $200,000 may not increase your home’s value above the median, or at least not by much. 
• Regional Tastes – There are regional preferences that place more value on some remodeling projects than others. Adding a fireplace to your living space may provide more value in colder northern states than in the hotter South. Similarly, three-season rooms may be more valuable south of the Mason-Dixon than north. We know the general preferences of Northern Virginia homebuyers and can help you choose the best project. 
• Market Trends – When housing prices rise, home remodeling projects are more valuable for buyers. Strong real estate markets reward renovation projects. If you are considering selling your home, take the time to explore remodeling options that can increase your home’s value – and your asking price.

Is Remodeling Your Home a Good Investment?

Remodeling your home is a sound financial decision. Unlike most investments, which take a long time to pay for themselves, investing in your home offers immediate benefits like enhanced comfort and functionality for your family. 

Your renovation return on investment isn’t limited to the project you choose. Other factors impact your ROI, including:

Location – The property values around your home will impact the total resale value of your home. For example, investing $100,000 into a property where the median home value is $200,000 may not increase your home’s value above the median, or at least not by much. 

Regional Tastes – There are regional preferences that place more value on some remodeling projects than others. Adding a fireplace to your living space may provide more value in colder Northern states than in the hotter South. Similarly, three-season rooms may be more valuable south of the Mason-Dixon than north. We know the general preferences of Northern Virginia homebuyers and can help you choose the best project. 

Market Trends – When housing prices rise, home remodeling projects are more valuable for buyers. Strong real estate markets reward renovation projects. If you are considering selling your home, take the time to explore remodeling options that can increase your home’s value – and your asking price.

Financing Home Renovations 

Yes, you can finance a remodel or renovation project for your home! Accessing capital for your project helps to reduce the immediate impact on your family’s expenses. The additional budget provided by remodeling loans also ensures you invest enough to get the job done right. Home remodel financing options vary by region, so be sure to contact local housing resources. 

How to Finance a Home Remodel 

There are several ways to fund your home renovations. Always talk to a financial expert before taking out loans and be sure to consider the risks of both financing and remodeling. 

Many institutions offer financing options specific to home remodeling projects. Work with your bank or a local credit union for current rates and ask about these particular options. 

Financing a home remodel from equity, or the existing value of your home, is the most common way to fund remodeling efforts. 

• Refinancing a mortgage to remodel. For homeowners with enough equity, refinancing your existing home loan for a new loan worth more than you owe frees up more cash to invest in your remodel. 
• Home equity line of credit – A HELOC is an excellent option for property owners that have a low interest rate on their mortgage or have already paid off their house. This credit structure borrows against the value of your home. HELOCs are tax deductible up to $100,000 and usually have a much lower interest rate compared to standard credit cards. Be sure to establish whether the HELOC is an adjustable or fixed-rate loan. 

How to Finance a Home Remodel Without Equity

There are several financing options for homeowners with little or no accrued equity. Most home remodeling loans that aren’t structured on equity are offered by the federal government through local banks. These options, such as the FHA Title 1 Loan, have specific requirements to qualify, such as residency, income, and the type of planned remodeling projects. 

Let’s Talk Home Renovation ROI

At Daniels Design & Remodeling, we’ve worked with hundreds of Northern Virginia families to help them make sound financial decisions when it comes to their homes. Count on us as a resource and a sounding board as you start your remodeling journey. Take the first step. Schedule a conversation with us today. 

More Remodeling ROI Topics

Does A Finished Basement Add Value?
4 Reasons a Home Addition Might Be Right For You
How to Finance Your Home Remodeling Project