Faced with the daunting unknowns and potential complexities that come with major renovations, many people quickly abandon the purchase of a property in need of repairs. In fact, a recent study by Frontdoor reported that offers on homes in need of repairs have fallen by half from 2022 to 2023. But with high risk can come high rewards. According to Frontdoor, people who take the plunge to renovate a property in need of repairs have seen an average return on investment of 27.5%. This is in addition to the personal benefits of designing a home to their own tastes.
Of course, without the right planning and strategy, budgets can easily get out of control, and many people find that some remodels just aren't profitable. To find out which home remodels are worth their time and money, Frontdoor's data team used information from Zillow (like square footage and price) combined with Kukun's home remodel cost estimator to determine which home remodels were most profitable. Most of these were kitchens and bathrooms, two rooms that can be key to increasing a home's value. Read on to find out which remodels were the most profitable.
The most valuable kitchen remodel
cabinet
The kitchen is the focal point of any home, so it's only natural that your kitchen cabinets will make a strong impression on potential buyers. Whether you're reupholstering existing cabinets or installing new semi-custom cabinets, this renovation alone can increase your property's value by an average of 3.63%, or about $7,510. According to Frontdoor's findings, this is by far the most lucrative home improvement for a home in need of repairs.
Home appliances
Replacing mid-range brand appliances with premium items can create a more luxurious and efficient kitchen without the hassle. Buying new appliances for a home that needs repairs can increase the market value by 2.35%, or $4,922.
counter
Countertops serve an important functional role and are often the focal point of a kitchen, and according to Frontdoor, upgrading your countertops to granite, quartz, marble, or porcelain materials can increase your home's value by 1.81%.
Faucet and sink
Again, replacing a mid-range sink with a premium one can have a big impact on the appearance and therefore the price of your home: this type of renovation can increase a home's value by 1.12% on average.
Lighting
After you've done a lot of remodeling, you might consider installing new overhead lights to provide spotlights over your counters and sinks. Adding this type of lighting can increase the selling price by 1%.
Backsplash
Like countertops, kitchen backsplashes are eye-catching details that deserve attention: adding a granite, quartz, marble, or porcelain backsplash can increase a property's value by 0.42%.
The most rewarding bathroom renovations
Shower and tub surround panels
While bathroom remodeling doesn't add as much value as a kitchen remodel, it can still add a four-figure amount. Shower and tub surround panels contribute the most to a bathroom remodel, adding 0.92% or $2,300.
Faucets, sinks, toilets
Replacing your average faucet, sink, and toilet with premium versions can completely transform the appeal and comfort of your bathroom, increase its value by 0.61%, and potentially save you from plumbing problems caused by old pipes.
cabinet
Whether you're redoing your original cabinets with premium materials or installing entirely new ones, upgrading your bathroom cabinets can increase their value by 0.45%. New cabinets are also an easy way to change up the aesthetic of your bathroom by incorporating new woods and colors.
