Not every renovation gives you the most bang for your buck. Some renovations help recoup costs when you sell, while others merely bring more joy to living in a space. A few, however, help create optimal living while simultaneously adding resale value, so it’s important to know which rooms matter most—and which are a waste of time and money.
Here are the rooms that matter most for resale value:
Kitchens Always Come Out on Top
The kitchen is deemed the best room to renovate for value—and there’s a good reason why. It’s where people spend so much time—it’s where meals are prepared, homework done, and gathering occurs when friends visit. It’s one of the most-utilized rooms besides the bathroom. If it doesn’t work for you, daily, it becomes an inconvenient space.
The kitchen is often the selling point of a home; if a kitchen is in decent shape, buyers overlook so many other concerns. If a kitchen is in disarray, it can turn buyers away before they step foot in the door. That’s why realtors will always advise sellers to focus on a kitchen renovation first if only one transformation is affordable; people are more willing to overlook much else in the rest of the home for a great kitchen.
Costs also vary widely. A smaller job—a new cabinet door, new appliances, newer countertop hardware and countertops—might cost only a few thousand. A full renovation with an entirely new configuration from an architect’s plan that needs implementation could reach six figures. Most people find value in going through proven companies for kitchen renovations Perth to avoid making mistakes. It’s better to plan with experts than cheap out and need to redo things—or find fixing necessities that negate time and cash later on.
That’s because even a midrange kitchen will recoup 50-70% equity return upon reselling; a high-end kitchen recoups 60-70% as long as proper execution happens. The same benefit is for the seller who gets to experience that amazing renovation daily.
Bathrooms Come Second
Bathrooms are not as glorified as kitchens but hold nearly as much value when it comes to upgrades. A terrible bathroom or moldy bathroom can deter a buyer as fast as any horrible kitchen. No one wants someone else’s mildew. No one wants fixtures from 1987.
Fortunately, since bathrooms are smaller than kitchens, renovation costs typically trend lower. It’s possible to do a considerable bathroom upgrade for significantly less than a kitchen. New tile, newer fixtures, more nuanced lighting options, new storage—it’s amazing what a good bathroom redo can do.
However, bathrooms also present some of the most expensive surprises due to quick projects that morph into larger ones. When tiles are pulled up, or plumbing is moved, homeowners can find water damage behind walls or outdated piping that makes things worst. This is where the bathroom budget goes out the window.
Still, 60% equity recoup from midrange bathroom redo budgets is worthy enough of note; plus, it’ll be nice to have a private space you don’t cringe at multiple times daily.
The Master Bedroom Gets Less Attention
Little attention is given to bedrooms; however, when it comes to master bedrooms as retreats with ensuites and expanded closet space and configurations, it’s worthwhile to buyers, too.
The master bedroom matters because it’s how someone starts and ends each day—as such, if someone feels cramped in their master or hemmed in by poor layout, it’ll make them question their purchase. If the master has great space with built-in shelving and a connected bathroom, buyers like that aspect.
Additionally, unlike kitchens and bathrooms, equity recoup percentages are not as favorable here; many people may expect 50% back as an average acquisition on their investment once completed. That’s okay; this benefit rarely stands alone and, instead, boosts value amongst those who receive multiple interior upgrades.
Living Spaces
Open living has become all the rage over the last few decades; people want shared spaces where they can all be together but doing different things; that old dining room nobody used doesn’t cut it anymore.
As such, it dramatically reconfigures how people live. It makes smaller places feel larger and creates flow between once-separate spaces. It brings natural light into areas homes have never used before.
Costs range widely; if the walls being taken down are load-bearing, costs will dramatically increase due to need for engineering support and permits. The goal should be to keep as many walls up as possible since unforeseen circumstances can arise—and what’s been done has already cost money—with more need for remediation necessary.
The equity return on this type of project is questionable at best. In homes with bad layouts or worked-challenged dimensions, it can add considerable value; in homes where dedicated use spaces were perfectly configured already, it will only take away value from those looking for open concepts.
What About Outdoor Spaces?
Outdoor spaces have become increasingly valuable over time; people spend more time at home so having usable square footage outside at least during good weather offers additional living.
This depends widely on climates and regions—outdoor spaces mean more if there’s summer extended use; if spaces are only accessible a few months out of the year (or none), they’re not necessary regardless of convenience.
The costs depend widely; a deck might cost only thousands but an outdoor kitchen with built-in range might cost more than an interior kitchen upgrade.
Where Are the Rooms That Are Not Worth It?
Some rooms do not get valued upon resale stock considerations that feel great to do. Home offices are non-recoverable—unless equipped with incredible shelving and space—at least since remote working. The same goes for basements (home theaters) or luxury additions (wine cellars).
These projects are worthwhile if they’re essentially going to be used and enjoyed for years down the line; they’re not worth it strictly for resale.
How to Determine What Works Best For Your Space
Ultimately there is no “best” room for resale; there’s what’s best based on your house’s situation and your situational needs. If you’re planning on selling within a year or two-down-the-line after your efforts, focus on kitchens and bathrooms; they’ll give you the most bang for your buck.
However, if you’re going to stay put for ten years plus inside your home, renovate what makes sense best for your lifestyle even if the resale math doesn’t make sense.
It’s essential to be honest with yourself regarding your timeline and priorities. Renovating a room constantly at odds with what can be done simply ignores what should be fixed appropriately at all costs—renovations can be expensive and cumbersome; Money should go into places that will help improve comfort now—even if generic advice doesn’t always come into play for resale efforts—because you ultimately have to live there.
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