When considering renovations and remodeling projects, it’s important to understand how they impact the resale value of your home. Based on Opendoor’s analysis of thousands of recent home sales, we’ve compiled a list of the top home improvements that provide the highest return on investment. These figures are based on average value increases across multiple cities and assume a median home price in each market.
At American Real Title, we understand that your home’s value is key. As you invest in your property, trust us to help protect your title and secure your investment through our comprehensive title insurance services.
Top Renovations with the Highest Value Increase
| Home Improvement Project | Average Resale Value % Increase | Average $ Resale Increase |
|---|---|---|
| Add a Pool | 7.3% | $22,000 |
| Finish a Basement | 6.6% | $22,000 |
| Add up to a 3rd Bedroom | 6.2% | $20,000 |
| Add a Full Bathroom | 5.7% | $18,000 |
| Add Living Space | 5.3% | $17,000 |
| Full Kitchen Remodel | 4.8% | $15,000 |
| Convert Existing Sq. Ft. to a 2nd or 3rd Bedroom | 4.3% | $14,000 |
| Full Bathroom Remodel | 3.7% | $11,000 |
| Install Hardwood Flooring | 3.4% | $10,000 |
| Add a Half Bathroom | 2.9% | $9,000 |
| Add an Attached Garage | 2.2% | $7,000 |
Considerations Before Starting a Home Improvement Project
While adding a pool or a bedroom can seem like the most straightforward way to increase your home’s value, it’s important to consider that not every improvement offers the same return on investment (ROI). The more you add doesn’t always mean the more value you gain. Some projects may offer diminishing returns.
At American Real Title, we encourage homeowners to evaluate their project’s potential based on their location and the current market conditions. Your home’s value could be significantly impacted by the right type of improvement in the right area.
Project Breakdown: Which Home Improvements Bring the Best ROI?
Here are some specific details about the top home improvement projects and how they impact home values:
1. Adding a Pool
Adding an in-ground pool can provide an average 7.3% increase in the value of your home, or about $22,000. However, this varies greatly by location.
Top 3 Cities for Adding a Pool:
| City | Average Resale Value % Increase | Average $ Resale Increase |
|---|---|---|
| Tampa, FL | 10.4% | $31,100 |
| San Antonio, TX | 9.7% | $19,450 |
| Houston, TX | 9.4% | $18,750 |
2. Finishing a Basement
Finishing a basement can increase your home’s resale value by 6.6%, or around $22,000. This project can also add useful living space or generate rental income in some cases.
Top 3 Cities for Finishing a Basement:
| City | Average Resale Value % Increase | Average $ Resale Increase |
|---|---|---|
| Portland, OR | 10.6% | $42,250 |
| Nashville, TN | 8.7% | $26,100 |
| Raleigh, NC | 7.3% | $22,000 |
Partner with American Real Title for Peace of Mind
As you enhance your home’s value with these projects, don’t forget to secure your investment with American Real Title. Our trusted title insurance services ensure that your property’s title is clear and free from any legal issues, protecting you as a buyer or seller.