5 Remodels That Pay Off
While remodeling your home is often a labor of love born from the dream of a beautiful home, the financial cost of a luxury home remodel can feel daunting to the modern homeowner, even when renovations are seemingly necessary. If you’re feeling apprehensive about signing off on a six-figure remodeling project, you’re not alone. But it’s important to keep in mind that there are many benefits to a professional home remodel, even financial ones! Homeownership is one of the best ways to accrue wealth over time, and one of the best ways to boost your home’s value is to invest in it.
This October, GJK Remodeling is spotlighting the ROI benefits to remodeling your home. At GJK Remodeling, we believe every remodel should do more than just create a beautiful space; it should change the way you live in your home, and that includes remodeling as a financial investment that pays off in years to come.
1. Kitchen Updates
There’s a reason why people say “kitchens sell houses;” it’s true! The kitchen is the heart of the home and often considered one of its most defining rooms. It’s where family and friends gather, where you entertain guests, and it’s one of the most important rooms to remodel when trying to make the most out of your investment.
The average ROI on kitchen remodels is around 70-80%. Installing new, custom cabinets and reworking an existing layout alone can make a home exponentially more attractive to a potential buyer.
Therefore, if you’re thinking about remodeling your home and don’t know exactly where to start, it might be best practice to begin with your kitchen as your highest priority, and then work through the rest of your house. Kitchens receive the highest ROI in comparison to other remodels because they are likely one of the first things that potential buyers would be looking at.
Real estate agents reported that what buyers say sways their opinion of a home most often is cabinet condition, countertop material, appliance age, and if the layout flow works for everyday use. This is why even the most expensive of remodels are recouped by at least 50%; Buyers notice well-done remodels and take them into account when considering homes. This is especially true when looking at homes in the same neighborhood. Kitchen remodeling is difficult, and many potential buyers would rather not remodel themselves, so the home which has a newly redone kitchen will always win out against a home with a dated one, especially if they are in an older neighborhood.
A minor refresh (new paint, counters, and hardware) can return high ROIs and is a legitimate choice if your layout works. If it doesn’t, painting over the problem just gives you a nicer version of a kitchen that still frustrates you. The value is in the function you feel daily from fixing hidden issues rather than cosmetic changes. These cover-ups might seem like easy, high-yielding projects that can be done quickly and cheaply, but in reality, potential buyers want to see well-made, new spaces, not refinished bad ones. It’s true that kitchens sell houses, but similarly kitchens can be dealbreakers.
2. Bathroom Remodels
After kitchen remodels, bathroom remodels have some of the best ROI of any remodel that you can do in your home. Midscale bathroom remodels yield a 75-80% ROI, and upscale bathrooms can return 50-60%. Like bedrooms, bathrooms are among the most important aspects and features listed under a house when it is being sold, and the number and size of bathrooms helps a potential buyer understand how much space their family will have in this house. Therefore, bathrooms are some of the best investments you can make into a home.
While owner’s suite bathrooms are the most commonly remodeled bathrooms, (and often the bathrooms which add the most value,) investing in secondary bathrooms, powder rooms, and especially added bathrooms in an addition project can prove to be very rewarding when resale happens down the road.
Since bathrooms are some of the most-used and personal rooms in the house, they are very important for future homeowners and potential buyers. While ugly or outdated bathrooms might not be dealbreakers for a potential buyer, they could easily be the missing piece that bump up a selling price.
3. Exterior Appeals
While kitchens and bathrooms are what sell homes, there probably isn’t a better cost-effective way to boost your buy-out than working on the exterior appeal of your home. Replacing your front door or garage alone can yield up to a 90% ROI. Home additions that add a detached garage, home office, or in-law suite can add an extraordinary amount of value to a home. These are especially valuable in older homes in Dilworth or Chantilly, which are historic and thus have limited square footage. Lots of people are torn when home-shopping because they may love the location, but need more space. Adding significant space in a way which follows the requirements of the Historic District Commission can make your house more valuable in comparison to other homes in the area, because your home has the location that buyers want along with the space that other homes on your street may lack. The best way to make your home profitable and advertisable to potential homebuyers is to recognize the things that you don’t like about your house and change those things before they become the reason some passes on your offer.
4. Outdoor Living Spaces
Charlotte is known for it’s year-round comfortable weather, meaning many homeowners want to be able to enjoy the outdoors. So, one of the best ways to boost your home’s value is by fixing up an unusable deck or replacing an overgrown backyard with a well-constructed outdoor patio or gazebo. If you have a pool in your backyard, reimagining your patio to include plenty of space, a wet bar, or a covered grill could elevate your pool to a level above other homes in the area.
In recent years, outdoor living improvements have become a major selling point for buyers, with some real estate agents considering 2025 “the year of the outdoor living renovation.” Patios and decks have around 50-80% ROI, with refurbishing an existing deck having a higher percentage return. More luxurious remodels that add firepits and outdoor kitchens have much higher ROI percentages, around 70% and can get as high as 100-200%.
For the most part, many homebuyers don’t just want a beautiful outdoor area, but one which can be used well. A functional outdoor space where dining, entertainment, and play can easily be facilitated is what buyers want to see in their backyard. Versatility and low maintenance are the highest priorities and best trends this year, so concrete and porcelain become favored materials for patios because of their durability, while still mirroring high-end finishes like stone and wood without the upkeep. Similarly, high-end pergolas are common ROI trends for recent sellers, where the somewhat simple design can be enhanced by lighting, canopies, and solar panels. Adding technology like ceiling fans, TVs, and speakers can make the space feel high-end and luxurious.
5. Flooring Renovations
In many of the houses that GJK Remodeling works on, refinishing the floors is one piece of a larger, whole-home project that completely transforms the house. While it may seem like a costly and ineffective part of remodeling, floor renovations are some of the best ways to get a high return on any remodeling project. In places like Charlotte, where there is a lot of humidity, carpet can be a deterrent to potential buyers. Instead, vinyl plank, tile, or wood are good options for Charlotte homes that need durable and moisture-resistant flooring.
Hardwood flooring is the gold standard and consistently returns the strongest resale values. While new installation typically gives a 70-80% ROI, refinishing can return around 147% with significant resale value when the home is put on the market. In second place is vinyl plank, which gives a 65-80% cost recovery and works best with mid-price homes. While vinyl plank is not as flashy as hardwood flooring, it’s the best choice for families with children and pets, because it’s more durable and lower maintenance than other.
One of the best decisions that can be made for bathrooms in older homes is to replace fading wallpaper with floor-to-ceiling tile, which is a design that GJK does frequently in older homes. Bathrooms and kitchens have the best ROI for tile flooring renovations, but entryways and living rooms are also good options, although they don’t have the same ROI effect as other rooms.
If you’re already planning a kitchen remodel, one of the most important aspects of the remodeling process is refinishing or tiling the floors. Homebuyers expect a kitchen that is made of materials that are water-resistant and easy-to-clean. The best flooring materials for this is hardwood, LVP, or tile. Whichever of these materials works best for your home depends on your home’s aesthetics and your remodeling budget.
Final Thoughts
Remodeling can be very daunting, even when you know it’s necessary for your home. Be assured that all remodels have their rewards, including significant financial benefits. Remodels can be beneficial for any family, even those that aren’t planning to sell their homes soon. The ROI that remodeling is best known for is the happiness that you feel in the years that you spend in your new home, making memories, and entertaining friends.
Many homeowners are scared of upscale remodels because they feel that these remodels are less likely to get a high return on investment. But, the truth is, these numbers are largely dictated by the financial health of your neighborhood. The game, therefore, becomes less about competing in price with the homes across down, but about competing in quality with the comparably priced homes in your neighborhood. So, if you’re thinking about starting your remodeling journey soon, there is no bad time to start! Fill out our free consultation form to discuss your remodeling needs with a trained expert.
What is ROI?
Remodeling ROI (Return On Investment) is the share of a project’s cost that shows up in your home’s resale value. It’s measured by how much of the cost you recoup when the house sells, relative to the total spent.
What are the best ways to ensure a good ROI on a home remodeling project?
ROI can be best anticipated by the kind of project and the quality of work that is done. It’s important to keep in mind that the key to a high ROI isn’t necessarily finding the cheapest cover-ups and quickest surface level changes. The most profitable remodels are ones which use high-quality work in spaces that buyers notice, like kitchens, bathrooms, and outdoor living areas. Check out our Charlotte Area Remodeling Cost Guide for accurate pricing information on remodeling projects like yours to help budget for your home.
How can I get the most out of my home?
If you ever plan to sell your home in the future, one of the best things you can do is invest in your home now. Well-done, professional remodeling projects on important rooms can make your home stand out from other sellers on the block. Try to think about the things you noticed when you bought it, what were on your pros and cons list, and what aspects of the home currently frustrate you. Anticipating and eliminating the elements of your home that might be dealbreakers for other home buyers is one of the best ways to increase your home’s value.
Ready to Revitalize Your Home?
Every home is a good home. Some just need a little more work than others. Whether you’re planning a full kitchen renovation, a smaller home addition, or just want to see what’s possible with your current layout, our team at GJK can help you design a home that fits your vision and your budget. Fill out our consultation intake form to schedule your free consultation today!