What Renovations Bring the Most Equity?

Some home improvements increase property value more than others.
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Whether you're planning to sell your home soon or simply considering putting it on the market, there are many renovations you can do to make it more attractive to prospective buyers. When deciding which renovations to make, consider that some upgrades provide a higher return on investment than others.


Renovating an existing bathroom in your home or adding a completely new one can increase its value and help make the home more marketable. In its annual cost-versus-value report, Remodeling magazine said that homeowners who did major renovations on their bathrooms received a return between 88 to 91 percent of the investment. Smaller upgrades that can still make a big difference in the overall appearance of the bathroom include installing new light fixtures, towel racks and a double sink.


Choosing to upgrade the kitchen in your home can make it more attractive to potential buyers. Quicken Loans says homeowners can expect to see an average return of between 80 to 93 percent, when investing a minimum of $15,000 in kitchen updates. Improvements such as updating cabinets, adding new flooring and upgrading appliances can maximize the value of the kitchen. Ultimately, it's best to ensure that the renovation project will both improve the look of the kitchen and make it more functional.

Functional Upgrades

Making functional upgrades to your home such as adding a new roof, windows and heating and cooling system can make it more appealing to a potential buyer, as no one wants to purchase a home knowing it is in need of a major repair. Opting for energy-efficient windows and a heating and cooling system are other good choices that can improve the value of your home.

Outdoor Living Space

If your house doesn't have a patio or a deck or if the current one could use an update, this could be a wise investment. People enjoy having an outdoor space to entertain and to relax when the weather is nice. The Handy American says you can expect to see an average return of 104.2 percent by adding a mid-sized deck to your home. Finish this outdoor living space off by planting flowers and adding some patio furniture.

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