Yasmin Davis of Miami is a real estate professional with experience in design, staging, and minor construction. In the following article, Yasmin Davis explores the transformative power of renovations that yield the greatest returns.
The way a person’s home looks today is very likely not the way it’ll look in just a few years.
Unless a new home is built to a buyer’s specifications, a few renovations will likely be necessary over the length of ownership. Often, renovations are done to keep up with a family’s growing needs.
Yasmin Davis of Miami explains that they are often necessary when there is damage to the house or if it is showing its age.
Home renovations have significantly risen in popularity during the COVID-19 pandemic. In 2019,
$328 billion was spent on home improvement projects, according to the Joint Center for Housing Centers of Harvard University.
In 2023, an estimated $485 billion will go toward various improvement plans. The average cost of a renovation is somewhere around $15,000 to $20,000.
And then there are renovations done to make a home more sellable. That’s why return on investment (ROI) is so important for many homeowners. Strategic renovations can lead to a quick sale, but when considering ROI, not all home renovations are created equal.
Yasmin Davis on Getting the Biggest Bang for the Buck
Yasmin Davis of Miami says that whether it’s to update the look of a home, integrate space and comfort, or raise its value, the average ROI on remodeling projects is 69%. But there are
several renovations with an ROI that typically goes way beyond that number.
Minor Bathroom Renovation
As a general rule of thumb, updated bathrooms and kitchens are often essential for selling a home quickly and at the full asking price or above, especially in the current market.
Even just a minor remodel of a bathroom — a new vanity, more storage, a high-end showerhead, better lighting — has an average ROI of 102% on an average remodel cost of $10,500.
Minor Remodel of the Kitchen
A minor renovation to a kitchen is typically more expensive, about $15,000 on average, but comes with a very high ROU of 98.5%. Minor updates such as new appliances, refinished cabinets, and new hardware all make a big difference, according to interior designer Yasmin Davis.
Refinished Basement
Even the best-laid plans for a renovated basement tend to be forgotten. It may be easy to set aside refinishing a basement in favor of upgrading the rooms where homeowners spend most of their time.
Yasmin Davis says that’s a mistake because a properly refinished basement is tagged with an average ROI of around 70%. Basement renovations like new flooring and drywall and a fresh coat of paint can even move a home into a higher price category.
Home Office
The rise of hybrid work schedules means many need a dedicated workspace in their home, especially if more than one member of the household works at home.
In much of the same way, a home office addition or converting an existing room into a home office will appeal to homebuyers who often list it as a must in 2023. Good home office investment includes new doors and windows and lots of storage space.
HVAC Conversion and Replacing a Garage Door
Yasmin Davis of Miami explains that it may come as a surprise, but replacing a traditional furnace with an electrified pump has arguably the best ROI — 104% on average with an average price tag of $17,700, according to a ranking seen in Zonda Media’s 2023 Cost vs. Value report.
Second place on the list is also surprising - there’s an average 103% return on replacing a garage door.
Focusing on Curb Appeal
In an ever-competitive real estate market, it’s the little things that can make a big difference to potential buyers.
Yasmin Davis of Miami says that spending a bit of cash on exterior upgrades, such as siding, landscaping, new windows, and roofing all come with 80% return. Great curb appeal makes for a great first impression, but it may also be the only way to spark interest in homebuyers – potential buyers are less likely to step inside a home if the outside is unappealing.
Attic Conversion to a Bedroom
It’s hard to go wrong when renovating a space means turning it into a new one, especially when it comes to the number of bedrooms in a home.
Yasmin Davis of Miami explains that renovating large attics and turning them into a much-needed extra bedroom is likely to raise the value of the home and necessitate a higher sale price. An attic conversion comes with an average ROI of 93.5%. This renovation comes with a high price tag though, at an average cost of $39,200.
