If you’re like most homeowners, you have a long list of remodeling projects on your to-do list. Prioritizing your needs can be challenging, though, especially since you want to make sure that any renovation is of the highest quality. As a result, it’s natural to try to determine the return on investment, or ROI, of different home remodeling projects.
In this post, I’ll offer some guidance about which home renovation projects offer the most value. Of course, value isn’t just about dollars and cents. After all, it’s hard to estimate or quantify how much living in your dream home will mean for your quality of life.
For that reason, I’ll discuss some of the ways we can assess value in home remodeling, and then I’ll go through the types of renovations that deliver the most to you and your family.
Assessing Value from Home Remodeling Projects
There’s no simple way to calculate the exact value that you get from renovating a space in your home. One inherent challenge is that we have to account for both quantitative and qualitative value.
Quantitative vs. Qualitative Value
Resale value is the simplest way to think about the value of a renovation. If you decide to sell your property, you can expect buyers to pay a higher price if you’ve completed important upgrades.
But the financial bottom line isn’t the end-all, be-all, especially if you have no intention of moving. For some projects, the real value may come from how it enhances your everyday life or allows you to do more things you enjoy, like hosting guests or spending quality time with your family.
While tracking the market can give you an idea of quantitative value, qualitative value is much more subjective. Only you can determine your vision of the good life, how a home renovation can contribute to it, and what that’s really worth beyond the dollar figures.
Findings From the JLC Remodeling Cost and Value Report
One resource that we can consult about market value comes from the Journal of Light Construction’s annual report about remodeling cost and value. They access data from homeowners and contractors to create a report about what kinds of remodeling services tend to cost in different locations and how much they affect a home’s value when sold.
For the Philadelphia area in 2024, the remodeling projects that delivered the highest average total value were:
- Primary suite additions
- Major kitchen remodels
- Bathroom additions
- Bathroom remodels
- Deck additions
However, big projects have a higher cost, so the report also shows which projects do the best of recouping what you have to pay to complete them. When ranked in terms of typical ROI, the list looks a little different:
- Minor kitchen remodels
- Deck additions
- Bathroom remodel
- Primary suite additions
- Bathroom additions
Of course, these numbers are averages and based off of standard rather than custom remodels. As such, they are not a prediction about what’s best for your home. But they do give you an idea of how a home renovation can impact your home’s price on the market.
Top Value #1: Kitchen Remodeling
Kitchen remodeling services are our pick for the most reliable ROI. We use our kitchens every day and in numerous ways, which is why a high-quality kitchen can contribute to your quality of life and to resale value.
As a custom remodeler, we design every project to suit our customer’s specific needs, but some of most frequent kitchen upgrades we implement include:
- Upgrading cabinet doors or installing a full set of brand-new custom cabinets
- Replacing old appliances with modern ones that are equipped with energy efficient components and innovative features
- Installing a new sink and faucet hardware
- Putting in new counters
- Replacing the flooring with durable, high-end, and slip-resistant materials
- Repairing and painting walls and trim
Some upgrades cost more money, such as installing commercial-grade appliances or luxury materials, which is why the budget for a kitchen remodel can vary considerably.
Top Value #2: Bathroom Remodeling
Bathrooms are another part of our home that get frequent use, which means that renovating them can offer huge benefits. Core elements of most bathroom remodels include:
- Replacing the floor with new tile or another moisture-resistant material
- Upgrading a shower-tub combo with a new bathtub and new shower hardware
- Installing new counters for the vanity along with a new sink basin and faucet
- Putting in a new toilet
- Changing out the light fixtures
Bigger upgrades that we find can really level up a bathroom renovation include:
- Converting to a walk-in shower and/or setting up a freestanding tub
- Installing a top-tier double vanity with luxury materials for the countertop, sink, and fixtures
- Upgrading the shower with a frameless door and dual showerheads
- Installing an in-floor heating system
- Replacing windows to increase natural light
- Incorporating accessibility features, such as curbless shower entry, safety lighting, and grab bars.
Top Value #3: Primary Suite Addition
Although it’s more costly, a primary suite addition can truly transform your home. These projects typically involve expanding the footprint of your home either up or out. That provides the floor space to make your primary bedroom bigger while also building out a larger, more functional bathroom with greater visual appeal. A primary suite addition can also be an opportunity to expand closet space.
Honorable Mention #1: Basement Finishing
An unfinished basement holds a ton of potential for any home. Remodeling services can turn your basement into virtually anything you can envision, whether it’s a new living space, guest suite, workout room, home office, or wine cellar. For that reason, a basement upgrade can pay off in terms of your quality of life and your property value.
Honorable Mention #2: Deck Addition
While it’s a project of a smaller scope and budget, a deck addition can offer meaningful value. With a wood or composite deck, you can give your home an indoor-outdoor element that you can enjoy on sunny days and that appeals to potential buyers.
Making Your Renovation Project a Stress-Free Experience
What’s the best project for your house? In reality, the answer always lies in the details, and only you can fully assess what certain upgrades would mean for you.
But no matter where you turn your attention, it’s essential to work with a remodeling team that has the expertise to meet the highest standards so that you can truly transform your home.
At Hazley Builders, we’ve spent more than 25 years offering the highest-quality renovations to our friends and neighbors in the West Chester area.
With our design-build process, we handle every step of the job, from planning to construction. That allows us to offer a seamless experience that protects our clients from stress. We pride ourselves on the highest level of communication and service, so that you always know the work schedule and can plan accordingly.
If you’re thinking about a remodel, we hope that you’ll contact us to schedule an appointment to discuss what we can achieve together.
