As homeowners, it’s only natural that we want to beautify our homes. Nobody wants to live in an ugly house, right? Sprucing up our living spaces can give us a sense of accomplishment and reduce tension, for example.
This is where renovations come into play. However, not all renovations are created equal, and very few home renovations that add value exist. Sure, some can add significant value, but most can drag down your home equity.
In this article, join Pro Buyer Haven as we explain how these renovations burn the biggest hole in your pocket while being the biggest contributors to your resale value. We'll also review the top renovations to go for when planning to sell your house.
Do Renovations Always Add Value?
Unfortunately, no. Renovations are projects that will either recoup your investment or be the reason why nobody is picking it up in the market. Some renovations can’t add property value because they are either:
- Too personalized for the current homeowner’s taste. Just look at Michael Jordan’s home, still unsold for 12 years and counting.
- Feel out of place when factoring in the design and similar property values to the rest of the neighborhood.
Very few renovations can allow us to fully recoup their costs, or even any at all. Most return on investment (ROI) from these home improvement projects can vary from 20% to 100%. This is why it’s imperative to plan them out strategically.
How to Determine Renovations that Add Value to a Home?
There are two ways where we can see whether a renovation adds property value. One way is measuring through a rise in home equity, which is handy when borrowing against it.
The other is measuring it as a share of the total project expenses. Let’s say you just got the old stone veneers renovated, either through hiring contractors to do the work or good old-fashioned sweat equity.
For example, if this home remodeling project costs you $10k, and the renovation adds $11k to the resale value, we can confidently say that this nets you 102.3% in ROI.
Alongside those things, several factors may influence whether your home renovations will add property value should you sell your house in Florida:
- Current real estate demand
- Location and neighborhood
- Quality of labor and materials used
- Buyer taste and preferences
What Home Improvements Add Most Value ROI-Wise?
Average Cost: $18,800
Resale Value: $12,422
Recoupment: 55.1%
Replacing the entire HVAC is sure to burn a hole in your pocket, but it’s well worth the investment. Although the cost vs. value for 2024 fell by a whopping 50% compared to last year, energy-efficient additions are still in demand. They qualify for tax breaks, too.
In this case, converting your home from power-hungry AC systems to heat pumps that both heat and cool the home is a sure way to up your resale value. Buyers actively look for features that champion cost-effective sustainability.
Renovations Requiring A Permit in Florida
While we’re all for doing the elbow grease ourselves, it’s a good idea to check if it needs a permit first. If it does, best to hire a professional instead.
The following renovation plan(s) will require a permit:
- Installing wallpapers, flooring, carpeting, or tiles
- Installing doors, cabinets, countertops, and drywall (under 10 square ft.)
- Altering or replacing the plumbing
- Altering or replacing any wiring in appliances and fixtures
- Installing, repairing, or replacing gutters
Garage Doors
Average Cost: $10,925
Resale Value: $11,177
Recoupment: 102.3%
Although pricey, it’s no surprise that garage doors are one of the home renovations that add value to your home. This is because exterior renovations historically yield the highest ROI, in terms of increasing curb appeal.
However, this statement also applies to other smaller projects. Even adding a fresh coat of paint to the exterior walls for a few hours off your weekend can still yield you a significant ROI.
Stone Veneers
Average Cost: $11,287
Resale Value: $17,291
Recoupment: 153.2%
Same as above, stone veneers greatly increase your home’s curb appeal. Not only do they evoke an elegant vibe, but are also cost-effective and have a “predictable” quality. All in all, this allows homeowners to beautify their homes as they live in them, recoup their expenses, and up their equity should they decide to sell down the line.
HVAC
Key Takeaways
These are just some of the top home renovations Florida residents can refer to when planning for one. You can see the complete statistics in this remodeling guide.
Although we’re a “we buy houses” company, we’re homebuilders at heart. If you have any thoughts, questions, or inquiries we haven’t covered in this article, don’t hesitate to contact us for assistance.
