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Home renovations are a great way to increase the value of your property, especially if you plan to sell it in the future. However, not all upgrades are equal when it comes to return on investment (ROI). Some rooms offer a better ROI than others, providing a higher increase in home value compared to the money spent on renovations. In a competitive real estate market like Orlando, Florida, where buyers are looking for modern, functional, and appealing spaces, knowing which rooms to focus on can make all the difference. Here are the top five rooms to renovate for the best rate of return on your investment.
Kitchen Renovations
The kitchen is often considered the heart of the home, and it’s no surprise that updating it can significantly increase your home’s value. Potential homebuyers place a lot of importance on a modern, functional kitchen, and this space can often make or break a sale. In fact, a mid-range kitchen remodel can offer an ROI of 70-80%, making it one of the best investments for homeowners.
Key upgrades that bring the highest returns include installing new countertops, modernizing appliances, and refacing cabinets. Buyers are particularly drawn to energy-efficient stainless-steel appliances, quartz or granite countertops, and updated flooring. If your kitchen is still closed off from the rest of the house, consider opening it up to create an open-concept space. This has become a popular trend, especially in markets like Orlando, where buyers love the idea of a bright, airy kitchen that flows into the living or dining area.
Another key factor is functionality. Adding extra storage, like pull-out shelves or a kitchen island, can appeal to families looking for both style and practicality. An Orlando homeowner recently updated their dated kitchen by adding a large island and installing energy-efficient appliances. As a result, their home sold for $20,000 above the asking price, proving that kitchen renovations can be a game-changer.
Bathroom Renovations
Bathrooms are another high-impact area when it comes to home value. A clean, updated bathroom is a major selling point for buyers, and a renovation can provide an ROI of 60-75%. While kitchens are often considered the most important room in the house, bathrooms come in a close second, as they reflect the overall cleanliness and care of the home.
Simple updates, like installing new fixtures, upgrading the vanity, or replacing the old tub with a modern, walk-in shower, can make a big difference. Energy-efficient fixtures, such as low-flow toilets and water-saving showerheads, are especially popular with buyers today, as more people are interested in sustainability and saving on utility costs. Orlando’s warm climate also makes features like tile or stone floors, which are cooler underfoot, particularly desirable.
In recent years, homeowners have been leaning towards creating spa-like bathrooms, complete with large soaking tubs, heated floors, and rainfall showerheads. While these upgrades can be pricier, they can also make your home stand out in a crowded market. For example, one Orlando home seller added a luxurious spa bathroom, and the home sold within days for $15,000 more than comparable homes in the neighborhood.
Garage Renovations
The garage might not be the first space that comes to mind when you think of home renovations, but it has huge potential to add value to your home. Whether it’s used for parking cars, as a workshop, or for extra storage, a well-maintained garage can be a major selling point for buyers. In fact, garage renovations can deliver an impressive ROI of around 70-80%.
One of the most effective upgrades is installing a polyaspartic floor coating. Polyaspartic is durable, resistant to chemicals, and able to withstand Orlando’s high heat and humidity. It also provides a clean, finished look that makes the garage feel like an extension of the living space. Built-in storage systems are another big draw, as they help buyers visualize how they can use the space to stay organized.
In Orlando, where garages are often used for more than just parking, converting your garage into a multi-use space—like a home gym or workshop—can increase its appeal even more. A homeowner in the area who upgraded their garage with a polyaspartic floor and custom storage cabinets sold their home for $10,000 more than nearby homes without the renovation.
Attic Conversions
Converting an attic into a livable space is a great way to add functional square footage to your home without having to build an extension. Whether you transform it into a bedroom, office, or playroom, adding usable space to your home can have a significant impact on resale value. The typical ROI for attic conversions ranges from 65-75%, making it a smart investment for homeowners looking to maximize the value of their property.
In Orlando, where homes are often designed to make the most of available space, an attic conversion can give you a leg up in the market. Buyers love the idea of additional living areas, especially in areas with limited land for new construction. A properly finished attic, with good insulation and ventilation, can be turned into a comfortable and functional room. One Orlando homeowner converted their attic into a guest bedroom and saw a 70% return on the renovation cost when they sold the house.
The key to a successful attic conversion is making sure it’s well-designed and meets the needs of potential buyers. Adding windows for natural light, ensuring proper insulation for energy efficiency, and installing easy-to-access stairs can all make a difference in the appeal of the space.
Basement Finishing
In some parts of the country, basements may not be as common, but for those who have them, finishing the basement can be one of the best ways to increase home value. A finished basement adds usable square footage, which can be a huge draw for buyers looking for extra space for a home theater, game room, or guest suite. On average, a basement finishing project can offer an ROI of around 70%.
Orlando homes don’t typically have basements, but for those that do, it can be a hidden gem for adding value. A finished basement that’s designed as a bonus living space or entertainment area can turn heads in the real estate market. Proper moisture control is essential in humid climates like Orlando, so adding a moisture barrier and dehumidifier to the space is critical to keeping it dry and functional.
Homeowners who take the time to create a finished basement often find that it helps their home stand out in a market full of homes without basements. One local seller turned their basement into a family entertainment center, complete with a bar and home theater. When the home went on the market, it attracted multiple offers, ultimately selling for $25,000 above the list price.
Honorable Mentions
While these five rooms offer some of the highest returns, there are a few other areas of your home that can also boost value when upgraded. Outdoor living spaces, especially in a sunny city like Orlando, are incredibly popular and can provide a solid ROI. Adding a deck, patio, or outdoor kitchen can increase your home’s appeal to buyers who want to enjoy Florida’s weather year-round.
Curb appeal is another important factor when selling a home. Simple updates like a new front door, fresh paint, or updated landscaping can create a positive first impression that can help sell your home faster and for a higher price. Additionally, energy-efficient upgrades, like new windows and doors, are attractive to buyers looking to save on energy bills and can provide a solid return on investment.
Factors That Affect ROI
It’s important to note that several factors can influence the ROI of your home renovation projects. The current real estate market, the condition of other homes in your area, and regional preferences all play a role in how much value a renovation can add. In Orlando, where homes are often exposed to high heat and humidity, upgrades that increase energy efficiency or withstand Florida’s climate are especially appealing.
Smaller, targeted upgrades like fresh paint, new light fixtures, or modern hardware can also provide great returns with a smaller budget. Even if you’re not planning a full-scale renovation, making small improvements can still have a positive impact on your home’s value.
Conclusion
Renovating your home is a smart way to boost its resale value, but it’s important to choose the right projects that offer the highest returns. Kitchens, bathrooms, garages, attics, and basements are all rooms that can provide a solid ROI while also making your home more attractive to potential buyers. Whether you’re looking to sell soon or just want to make improvements for the future, focusing on these high-impact areas will give you the best results. In Orlando’s competitive real estate market, strategic renovations can make all the difference in maximizing your home’s value.
