In part two of our home renovations for ROI, we’re going to look at bigger remodel projects and how they impact your home’s value.

As always, keep in mind what your home is worth and the average prices in the neighborhood. Taking a kitchen remodel for example, a good rule of thumb is to aim to spend no more than 15 percent of the total value of your home. As kitchens tend to deliver the highest ROI, other upgrades should be more conservative if you want to extract maximum value.

Here are a few excellent home remodel ideas that deliver good value and return potential:

• A. Master Suite. Master suites are a highly desirable home upgrade. A mid-range master suite can deliver a net return of about 84.7 percent with these types of upgrades:

1. Expanded sleeping area
2. Walk-in closet and dressing area
3. Ensuite master bath with spa shower and smart mirrors
4. Built-in storage
5. Gas fireplace
6. Linen closet
7. Bump-out to a balcony

• B. Kitchen Remodel. If your kitchen is outdated, remodeling before you put your house on the market is guaranteed to increase value.Even if there is only minor work to be done, adding new energy-efficient appliances, replacing laminate countertops, and refacing cabinets can give you a return of almost 95 percent.If you’re going high-end, a major upscale kitchen renovation might include high-end tile, natural stone countertops, commercial-grade appliances, tile flooring, and a water filtration system to see a 70 percent return.



• C. Basement, Garage, or Attic Conversion. Adding more livable space is an excellent way to add value to your home. You will broaden your target market to include growing families or people who work from home, and the return is in the range of 53 to 80 percent, depending on the scope of the project. For example, if your conversion project creates a completely self-contained unit, you can list your house as income property and encourage a whole new demographic.



• D. Accessory Dwelling Unit (ADU). Recent changes to California building codes pertaining to ADUs make it easier for you to build additional living space on your property. ADUs can be attached or detached, and some might describe basement or garage conversions as ADUs. Any way you look at it, it’s a value-added feature that has the potential to generate income for buyers and increase the appraised value of the home.



• E. Open Floor Plan. Open concept design is highly desirable in today’s housing market. It maximizes smaller spaces, enables active lifestyles for families with children, and supports the currently popular mid-century modern and minimalist interior design aesthetic. The costs for opening up walls will vary considerably depending on whether you have to deal with any load-bearing walls, but the result is highly appealing and extends your market to a broader group.

Other value-boosting renovation ideas you might consider:

1. Adding skylights to increase natural light.
2. Making your house more energy-efficient with new windows and attic insulation.
3. Replace light fixtures with low-energy LEDs

Are you ready to remodel your Bay Area home? We’ve got inspiration to spare! Reach out today to schedule a consultation. We’d love to show you how we can help.