/How Home Renovations Boost Your Home Value

How Home Renovations Boost Your Home Value

More and more Americans are choosing to renovate their homes.

In 2017, home renovations spending increased to $314 billion—a 6.5 percent jump. Experts predict another 7.5 percent jump in 2018, when home renovations spending will reach nearly $340 billion.

Not only does a renovation make your home more aesthetically pleasing, but it also boosts the value of your real estate investment. U.S. home values increased by an average of $15,000 last year, in part because of renovations.

But what you renovate matters. According to TD Bank’s Home Equity Sentiment Index, 54 percent of Americans would renovate a kitchen, while 46 percent would renovate a bathroom. Yet only one-third of homeowners would make renovations to increase their home’s value.

This is a huge mistake! Here are some facts:

  • Adding granite or quartz countertops adds more than $17,000 to the price of a home.
  • A mid-range bathroom remodel of $19,134 returns about 70 percent of its value upon sale of the house.
  • A $17,000 composite deck adds 63.6 percent of its value to a house, while a $11,000 wooden deck adds 83 percent of its cost.

If you’re able to invest in renovations, look beyond the short-term cost. Think bigger than the renovation itself.

A $20,000 investment can move you one step closer to luxury living—and selling.