The 5 Best Home Renovations That Add Value in 2024

The 5 Best Home Renovations That Add Value in 2024

Photo | Canva

It’s an instinctual move to add value to something you own. There are many reasons that owners might renovate, update, and try to add value to their property. 

Of course, there’s an obvious reason. When someone sells a home, adding value could mean more profit. If done correctly, a homeowner can maximize the margin between the cost of the renovation and the value it adds. This is the basic idea of flipping a home, by buying, renovating, and selling for a profit.

Not all renovations return your investment, so plan carefully - Photo via Canva

Whether you have invested or own the property, it’s time to learn how to add value in the best way. That means researching the right renovation strategy for resale and maximizing every dollar you put into the property.

Luckily, we’ve researched the best ways to do that.

Best Home Renovation Methods for Adding Value 

Knowing or estimating the cost of renovations is vital, but so is the ROI. With those figures, even a primary school student could calculate what you stand to gain from a renovation. 

With ultra-useful data from Remodeling, a trade publication, we can decide which areas of the home to focus our efforts on. Usually, that tends to be on the exterior. Upgrades and home renovations done to the exterior typically offer a higher chance of boosting the sale prices of homes. 

Here’s what else the Remodeling report from April 2024 tells Pacific region homeowners, which includes California. 

These 5 Renovations Add the Most Value to Homes

In the Pacific region of the US, we have the data showing which renovations add the most value. 

These results might surprise you since the leading renovation isn’t something you’d typically think of as a huge value booster. 

Top 5 home renovations to add value in 2024 in the Pacific region - Photo via Canva

Garage Door Replacement

A replacement is defined as swapping the older garage door for a newer one, but some homeowners may only need a repair. You’ll have to decide that with a garage door specialist or your realtor, who’ll have a good eye for such things.

  • Average cost of project: $4,554
  • Average resale value: $11,417
  • Cost recouped from project: 250.7%

A garage door replacement is the most efficient use of your money to increase resale value. The ROI is impressive while the project cost is far below almost every other option on this list. The cost assumes the motorized opener is going to be reused, but accounts for a new door, tracks, and disposal of the old door.

On top of the ROI, a garage door replacement is far quicker from start to finish than other options. You could be looking at a day, rather than a week or more like a bathroom or kitchen remodel.

Entry Door Replacement (Steel)

The entry point is a focal point and thus, it is an important feature to update. Entry doors are also the second most efficient and cost-effective project for home sellers to renovate. Of all 23 items on the Remodeling report, the entry door has, by far, the lowest average cost.

  • Average cost of project: $2,402
  • Average resale value: $6,001
  • Cost recouped from project: 249.9%

Steel is the material of choice, but don’t expect cold metallic finishes and a fortified styling. Steel doors come in all kinds of finishes and often look like wood or other materials.

But, you might be wondering how an entry door adds value. An upgraded entry door brings more energy efficiency and curb appeal. Along with windows and garage doors, the entry door is a key point for energy loss. 

There was a massive increase in average ROI for entry door replacement between 2023 and 2024. Going from 100% ROI to 188% in that time could be because of the added security residents feel with a steel entry door or the increasing focus on energy savings.

Manufactured Stone Veneer

Vinyl siding continues to improve, but stone will always have its appeal. The natural material gives homes a classic and tasteful look, so it’s no surprise that it's the third most effective way to add value to a home.

You’ll notice that the average cost of these renovations is rapidly increasing. The next projects all have attractive ROI, but it comes with more investment from the homeowner.

  • Average cost of project: $11,760
  • Average resale value: $23,934
  • Cost recouped from project: 203.5%

The average cost here is for 36 linear feet of sills, 40 linear feet of corners, an address block, and other materials.

Maintenance is often much easier for stone veneer compared to painted vinyl siding. Homeowners can take care of the stone by pressure washing and cleaning it with a mild soap solution once or twice a year. The stone veneer doesn't need to be repainted either, but you’ll want a well-reviewed contractor to do the work. If done incorrectly, moisture can penetrate the joints and cause mold issues.

Grand Entrance (Fiberglass)

A grand entrance is a widened entry point with decorative windows above and beside the door. It creates a more welcoming frontage, boosts curb appeal, and allows natural light into the home. On top of those benefits, the grand entrance can add personality to a property. There are many different designs, ranging from classic to modern. 

This project doesn’t perform well nationally and, on average, doesn’t recoup the full cost. However, in the Pacific region of the US, it can collect a home seller 136.6% of their initial investment, on average. 

  • Average cost of project: $11,732
  • Average resale value: $16,026
  • Cost recouped from project: 136.6%

Steel can be more budget-friendly for entry-point projects, but a grand entrance may suit some properties much better. Then, there’s the security aspect. Modern fiberglass is a strong material, but it’s universally accepted that a steel door is more secure. 

Fiberglass still has a couple of advantages over steel. They are often more energy efficient than the metallic alternative, as well as rust-resistant and moisture-repellent. The main drawback is slightly less strength against physical damage and denting. 

Minor Kitchen Remodel (Midrange)

As you would expect, this project is the most expensive on our list. Any kind of interior remodeling takes time and usually costs more than quicker renovations. However, the kitchen is a vital area of the home and could be a deciding factor for your potential buyers.

But despite costing homeowners much more, the average minor kitchen remodel will recoup it all, plus 34% added value. 

  1. Average cost of project: $28,140
  2. Average resale value: $37,794
  3. Cost recouped from project: 134.3%

Here’s what a minor kitchen remodel (midrange), as defined by Remodeling, would include.

Using a “functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops”:

  • Leave cabinet boxes in place.
  • Replace fronts with shaker-style wood and new hardware.
  • Replace cooktop/oven range
  • Replace refrigerator with energy-efficient model.
  • Replace countertops.
  • Install mid-priced sink and faucet.
  • Replace flooring.
  • Paint walls, trim, and ceiling.

More Home Renovations That Add Value

We’ve got to remind readers that these figures are averages and that your renovations will have their own price.

Once you identify the most profitable home renovations, it’s time to get quotes from professionals in your area. You can also ask realtors which renovations they see adding value to recently sold homes. 

Do some planning before moving forward with value-adding renovations - Photo via Canva

Here are 10 more home renovations that add value, ranked by cost recouped. 

  • Siding Replacement (Fiber-Cement) - 115.7% ROI
  • Deck Addition (Wood) - 111.1% ROI
  • Bath Remodel (Midrange) - 95.6% ROI
  • Siding Replacement (Vinyl) - 89.6% ROI
  • Deck Addition (Composite) - 87.6% ROI
  • Window Replacement (Vinyl) - 85.9% ROI
  • HVAC Conversion (Electrification) - 84.2% ROI
  • Window Replacement (Wood) - 80.9% ROI
  • Roofing Replacement (Asphalt Shingles) - 80.3% ROI
  • Major Kitchen Remodel (Midrange) - 67.8% ROI

Notice anything? Most of these renovations aren’t recouping their full cost and in some cases, barely three-quarters of it.

This really emphasizes an important point about home renovations. Sometimes, no matter how beautiful or stunning the project turns out to be, it adds no value. Homeowners priming their property for resale must be selective and know the limitations of upgrading. 

To find these limitations, just look to the professionals. Take the price of the renovation and ask an experienced local realtor to estimate the upside. Real estate agents are aware of the features and general expectations of homebuyers, putting them in a perfect spot to assess your renovation. 

To speak with someone about methods to increase your home sale price, just connect with our San Jose, California offices. You can do this online if you’d like or by calling us directly at (408) 889-7930. 

Ask us about profit-boosting renovations, our Guaranteed Sale Program, or anything else.

More Questions? Follow-up With Us!

If you have more questions about what to expect from the markets around the Bay Area, don’t be afraid to reach out to us today. Our experts are experienced in all property types and the entire San Francisco Bay Area, and we can help you to find what you need to know today.

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