Home Real Estate Understanding Which Renovations Increase Home Value

Understanding Which Renovations Increase Home Value

Sacramento Remodeling

Homeowners often think that undertaking major remodeling projects will boost the sale price of their home, but it’s not always the case. More often than not, upgrades don’t pay for themselves. To avoid this, it’s important to renovate strategically and focus on projects that will truly add value to your property. When planning for Sacramento remodeling, it’s crucial to keep in mind that not all renovations will have a positive impact on the value of your home.

Homeowners Vs Investors

When it comes to renovating a property, investors typically have a different approach than homeowners. Investors, such as those in the “fix-it-and-flip-it” business, focus on buying properties at a low cost and making strategic renovations to increase the value and sell at a higher price. They typically do most of the work themselves and choose projects that will give the most return for the least amount of effort and cost. On the other hand, homeowners may take a less strategic approach and end up spending more money on renovations than they will get back when they sell. To make the most of your Sacramento remodeling budget, it’s important to understand the typical return on investment for different types of projects.

1-   The Basics

When selling a home, it’s important to ensure that it has the basic amenities that buyers expect, such as a sturdy roof, functioning gutters, a dry basement, reliable furnace and plumbing, and good walls and floors. These are considered standard in the Sacramento remodeling industry and potential buyers will expect them to be in good condition. However, it’s not necessary to upgrade all these things. Regular maintenance and smaller, cheaper improvements can keep the property in good working order and ensure that you can ask for a comparable price. Additionally, making upgrades that greatly exceed the neighborhood standard can result in losing money and scaring off potential buyers. It’s important to consider the competing properties in the neighborhood and make improvements based on the specific marketplace

2-   Curb Appeal

While preparing to sell your home, it’s important to focus on curb appeal. Simple projects such as landscaping, fresh paint, and new exterior fixtures can make a big difference in creating a positive first impression for potential buyers. Keep in mind that lighting, both exterior, and interior, can also play a big role in creating a welcoming atmosphere. However, it’s important to keep things simple and avoid bold design choices that may not appeal to everyone. Instead, opt for subtle, tasteful designs that will appeal to a wider audience. Consult a professional if needed, but be mindful of budget. Sacramento remodeling can also be helpful in this process.

3-   Best Bang For Your Buck

According to the National Association of Realtors, certain home renovation projects can add significant value at resale and recoup a significant portion of their cost. These include wood flooring, both new and refinished, kitchen renovations with new countertops and state-of-the-art appliances, upgraded bathrooms, and basement or attic conversions. Additionally, certain exterior projects such as roofing, siding, doors, windows, refurbished decks, and energy upgrades also offer a high return on investment. These remodeling projects may recoup 80% or more of their cost at resale. Sacramento remodeling professionals recommend considering these projects when looking to add value to your home.

4-   Passion Projects

Passion projects such as swimming pools, tennis courts, hot tubs, cellars, and game rooms may be enjoyable for homeowners, but they often do not add value to a home. These expensive renovations are not always viewed positively by potential buyers and may not recoup their cost at resale. Sacramento remodeling experts suggest being cautious when replacing common features, such as converting a two-car garage into a game room, or when transforming a bedroom into a studio, removing walls to enlarge a space, eliminating a bedroom to extend a room, or remodeling the basement. Instead, it is recommended to focus on smaller improvements such as upgraded storage capacity.


When planning a renovation for your primary residence, prioritize personal preferences and functionality over potential resale value. Custom upgrades may not appeal to buyers, while small, neutral renovations can improve the functionality of your home. Keep in mind that most renovations will cost more than they will add in resale value.

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