According to Frontdoor, these renovations can elevate the worth of fixer-upper homes.
The uncertainty and challenges associated with extensive renovations often drive many people away from purchasing a fixer-upper. In fact, recent data from Frontdoor indicates that the number of offers on fixer-uppers dropped by half from 2022 to 2023. However, the considerable risks involved can lead to substantial rewards. On average, those who choose to renovate a fixer-upper enjoy a 27.5% return on their investment, in addition to the personal satisfaction of creating a space that reflects their style.
Nevertheless, improper planning and lack of strategy can lead to budget overruns, and many discover too late that not all renovations yield positive returns. To uncover which home improvements truly warrant your investment, Frontdoor’s data team analyzed insights from Zillow, considering factors like square footage and sale price, along with Kukun’s remodeling cost estimator. The overwhelming majority of profitable renovations were found in the kitchen and bathroom—two areas essential for enhancing your home’s value. Continue reading to discover the top renovations that deliver maximum value.
Most Profitable Kitchen Renovations
CabinetsSince the kitchen is often regarded as the centerpiece of the home, it’s understandable that kitchen cabinets significantly influence buyers. Whether you opt to reface your existing cabinets or install new semi-custom ones, this renovation alone typically boosts property value by about 3.63%, translating to roughly $7,510. Based on Frontdoor’s analysis, this is the most lucrative renovation for fixer-uppers.
Appliances
Upgrading mid-range appliances to more premium brands can create a sophisticated and efficient kitchen with minimal effort. New appliances are projected to increase your market value by 2.35%, or about $4,922.
Counters
Counters are not only vital for functionality but also often serve as a prominent feature in the kitchen. Frontdoor reports that replacing counters with granite, quartz, marble, or porcelain can elevate your home’s price by 1.81%.
Faucet and Sink
Replacing standard sinks with higher-end options can significantly enhance the look and value of your home. On average, such an upgrade can raise the property value by 1.12%.
Lighting
After completing various renovations, consider highlighting them with new ceiling lights above your counters or sink. Installing these types of fixtures could yield a 1% increase in your selling price.
Backsplash
Much like your counters, the kitchen backsplash is an appealing detail that deserves attention. Adding a granite, quartz, marble, or porcelain backsplash can contribute an additional 0.42% to your property value.
Most Valuable Bathroom Renovations
Shower and Tub Surround PanelsWhile bathroom renovations generally add less value than those in the kitchen, they can still contribute a significant amount. Installing shower and tub surround panels can provide the greatest boost in bathroom value, increasing it by 0.92% or approximately $2,300.
Faucet, Sink, and Toilet
Upgrading to higher-end faucets, sinks, and toilets can transform your bathroom’s look and comfort, adding 0.61% in value while potentially preventing plumbing issues associated with older pipes.
Cabinets
Whether you’re refinishing existing cabinets with premium materials or installing completely new ones, enhancing your bathroom cabinets can add 0.45% to the overall value. New cabinets also offer an easy way to refresh the bathroom’s aesthetic by incorporating different woods or colors.