Many individuals tend to avoid investing in fixer-upper properties due to the
uncertainties and potential challenges associated with extensive renovations.
According to Real Simple, a recent study conducted by Frontdoor highlighted that the
number of offers for fixer-uppers has decreased by half from 2022 to 2023. Despite the
high risks involved, renovating a fixer-upper can lead to substantial rewards. On
average, individuals who undertake renovation projects on fixer-uppers experience a
27.5% return on their investment. This financial gain is in addition to the satisfaction of
personalizing a home according to one’s preferences.
However, if proper planning and strategic thinking are not implemented, budgets can
quickly go out of control, and certain renovations may not provide the desired payoff.
To determine which home improvements offer the most value, Frontdoor’s data team
analyzed data from Zillow, including information on square footage and price, in
conjunction with Kukun’s home remodeling cost estimator. The analysis identified
kitchen and bathroom renovations as the most profitable areas for increasing a home’s
value. Continue reading to explore the top renovation options.
Highly Beneficial Kitchen Renovations
Cabinets
The kitchen is often viewed as the heart of a home, and the quality of kitchen cabinets
can significantly influence potential buyers. By either refacing existing cabinets or
installing new semi-custom ones, property value can increase by 3.63%, equivalent to
around $7,510. This renovation is considered the most financially rewarding for fixer-uppers based on Frontdoor’s analysis.
Appliances
Replacing mid-range appliances with high-end options can create a more sophisticated
and efficient kitchen. This upgrade has the potential to raise market value by 2.35%,
approximately $4,922.
Counters
Countertops are functional components that also serve as visual focal points in a
kitchen. Upgrading to materials like granite, quartz, marble, or porcelain can enhance
home value by 1.81%.
Faucet and Sink
Enhancing the kitchen by replacing average sinks with high-end alternatives can
significantly improve the space’s appearance and value, adding an average of 1.12%
to the property’s value.
Lighting
Installing new ceiling lights above counters or sinks can showcase the renovations and
potentially increase the selling price of the home by 1%.
Backsplash
The backsplash serves as a visually appealing detail in the kitchen. Adding a
backsplash made of granite, quartz, marble, or porcelain can raise property value by
0.42%.
Top Bathroom Renovations for Value
Shower and Tub Surround Panels
While bathroom renovations typically add less value compared to kitchen upgrades,
they can still make a significant impact. Upgrading shower and tub surround panels can
enhance home value by 0.92%, equivalent to $2,300.
Faucet, Sink, and Toilet
Swapping out standard fixtures with high-quality alternatives can enhance the appeal
and comfort of the bathroom, adding 0.61% to the property’s value and potentially
averting plumbing issues.
Cabinets
Improving bathroom cabinets, whether through refacing or installing new ones, can
increase home value by 0.45%. New cabinets also provide a straightforward way to
alter the bathroom’s appearance with different materials or colors.
