As the summer real estate market kicks into full gear, homeowners are gearing up to sell often wonder: “What home improvements offer the best return on investment?” The truth is, the condition of your home and the improvements you make can significantly impact your home resale value.

At Preferred Flooring & Tile, we understand the importance of strategic investments in your home before listing it for sale. In this article, we’ll explore the top 6  investments that can maximize your home’s appeal and boost its resale value.

1. Kitchen Remodel: Average ROI: 38-96%

Investing in a kitchen refresh can yield a remarkable return on investment. By making minor cosmetic updates such as installing new appliances, painting cabinets, and updating hardware, you can transform the heart of your home and make a lasting impression on potential buyers.

If you’re considering updating your kitchen, tile is a versatile and stylish option that can significantly enhance the space. According to Remodeling Magazine’s 2024 Cost vs. Value Report, kitchen remodels have a national average return on investment (ROI) between 38% and 96.2% depending on the scale of the remodel. Interestingly, smaller, more focused updates tend to yield higher returns compared to extensive remodels.

Tile Updates to Consider

Focusing on tile can be a cost-effective strategy when considering a kitchen remodel. Here are some tile-specific updates that offer a high return on investment:

1. Backsplashes: Installing a tile backsplash is a relatively low-cost update that can dramatically change the look of your kitchen. It protects your walls from spills and splatters while adding a stylish focal point.
2. Flooring: Replacing old, worn-out flooring with new tile can refresh the entire kitchen. Tiles are not only durable and easy to clean, but they also come in a variety of styles that can mimic high-end materials like marble or hardwood.

2. Refinished Hardwood Floors: Average ROI 100%

Refinishing hardwood floors is a cost-effective way to breathe new life into your home. With a fresh finish, your hardwood floors will look like new, enhancing the overall appeal of your home and attracting discerning buyers. On average, homeowners can expect to pay between $3 to $8 per square foot to refinish their hardwood floors. Usually, the homeowner can expect a full return on investment for refinishing. 

Real estate professionals also recognize the value of this update. According to the National Association of Realtors (NAR) Remodeling Impact Report,  27% of seller’s agents recommend refinishing hardwood floors to their clients before listing their homes. Additionally, 5% of all agents noted that this upgrade helped close a sale, highlighting its importance in the competitive real estate market.

3. Minor Fixes: Average ROI: 96 -100%

Simple fixes can have a significant impact on your home’s appearance and your home resale value. According to Remodeling Magazine’s 2024 Cost vs. Value Report, a minor kitchen remodel, which includes updates such as fresh paint, new hardware, and a deep cleaning, has a national average ROI of 96.1%. This means you can recoup almost all of your investment, making it one of the most cost-effective improvements you can make.

Key Minor Fixes to Consider:

1. Fresh Paint:
   • Impact: A fresh coat of paint can instantly brighten up a space, making it look cleaner and more modern.
   • Cost: Relatively low compared to other renovations.
   • Tip: Choose neutral colors to appeal to a broader range of potential buyers.
2. Hardware Swaps:
   • Impact: Replacing outdated hardware on cabinets, doors, and drawers can give your home a more contemporary look.
   • Cost: Minimal, especially if you shop around for affordable options.
   • Tip: Opt for hardware that complements your home’s style.
3. Deep Cleaning:
   • Impact: A thorough cleaning can make your home feel brand new. Focus on often-neglected areas like grout lines, baseboards, and windows.
   • Cost: Low, especially if you do it yourself.
   • Tip: Consider professional cleaning for carpets and upholstery to make them look fresh and inviting.

Why Minor Fixes Matter:

• Cost-Effective: These improvements require minimal investment but can yield substantial returns.
• Quick Turnaround: Most minor fixes can be completed in a short amount of time, making them ideal for homeowners looking to sell quickly.
• Enhanced Appeal: Small updates can significantly enhance your home’s curb appeal and interior charm, making it more attractive to potential buyers.

By focusing on minor fixes, you can increase your home’s resale value without a large financial outlay. These simple, budget-friendly improvements can make a big impact, ensuring you get the best return on your investment while making your home more appealing to prospective buyers.

4. Roof Replacement: Average ROI: 55-60%

Investing in a new roof can significantly boost your home’s value and appeal. According to Remodeling Magazine’s 2024 Cost vs. Value Report, with a roof replacement you can possibly recoup average of 55 to 60% of the costs at sale. This makes it one of the highest-return investments you can make in your home.

Key Considerations:

• Material Selection: Choose the best material for your climate and home style. Options include asphalt shingles, metal roofing, and more. 
• Professional Installation: Hire reputable contractors to ensure quality workmanship and compliance with warranties.
• Maintenance: Regularly inspect and maintain your roof to prolong its lifespan and maintain its value.

By investing in a roof replacement, you not only enhance the aesthetic and structural integrity of your home but also increase its marketability. The high return on investment makes this an attractive option for homeowners looking to maximize their property’s value and appeal.

5. Carpet Replacement: Average ROI: 50-80%

Replacing old or damaged carpets can instantly refresh the look of your home. Choose neutral colors and high-quality carpet to appeal to a wide range of buyers and maximize your return on investment.

Most experts estimate installing new carpet can yield a 50% to 80% ROI. Potential buyers often notice and appreciate new, clean carpeting, which can make your home more attractive. 

The ROI largely depends on the quality of the carpet installed:

• High-Quality Carpet: Offers better durability and appearance, which can boost your ROI.
• Basic Carpet: May save on initial costs but could be less impressive to buyers.

Understanding the costs involved in carpet installation helps in assessing the potential ROI:

• Cost: Carpet installation typically ranges from $3 to $11 per square foot. For example, replacing carpet in three 8×12 bedrooms (totaling 288 square feet) would cost between $864 and $3,168.
• Quality vs. Cost: Investing in higher-quality carpet may be more expensive but can yield a better ROI and make a stronger impression on buyers.
• Professional Installation: While DIY installation can save money, hiring a professional ensures a high-quality finish and can potentially increase your home’s perceived value.

Before deciding on a replacement, consider whether a deep cleaning could achieve similar results. However, replacement is likely the better option if your carpet is worn out, ripped, or beyond cleaning. Updating your carpet can significantly enhance your home’s appeal, making it more attractive to potential buyers and speeding up the sale process.

6. Bathroom Refresh: Average ROI: 53-58%

Bathrooms are crucial in influencing buyers’ decisions, making them a focal point for home improvement projects. A simple bathroom refresh can yield impressive returns on investment (ROI), averaging around 58%. Here’s how you can enhance your home’s appeal and value with modern updates:

Why Refresh Your Bathroom?

1. Increased Appeal:
   • Impact: Modern, luxurious bathrooms are highly desirable among homebuyers.
   • Benefit: A refreshed bathroom can attract more buyers and command higher offers.
2. Quick Transformation:
   • Impact: Simple updates such as painting, replacing vanities, and updating lighting can transform the look and feel of a bathroom.
   • Benefit: These changes can be implemented relatively quickly and cost-effectively, maximizing your ROI.

Key Elements of a Bathroom Refresh:

1. Painting:
   • Impact: A fresh coat of paint can instantly rejuvenate the space and create a clean, inviting atmosphere.
   • Benefit: Opt for neutral tones or soft, soothing colors to appeal to a broad range of buyers.
2. Vanity & Tile Replacement:
   • Impact: Upgrading outdated vanities and older tile and grout with modern, stylish options can elevate the overall aesthetic of the bathroom and present a cleaner look.
   • Benefit: Choose vanities that offer ample storage and functionality while enhancing the visual appeal of the space. Choose tile that is neutral and could go with lots of decore styles. 
3. Lighting Updates:
   • Impact: Updated lighting fixtures can enhance visibility, ambiance, and aesthetics in the bathroom.
   • Benefit: Choose energy-efficient LED fixtures in contemporary designs to create a modern, well-lit environment.

A bathroom refresh offers a high ROI and has the potential to significantly increase the value of your home. By focusing on modern updates, quality materials, and enhanced functionality, you can create a bathroom that appeals to buyers and elevates the overall appeal of your property. Whether you’re preparing to sell or simply looking to enhance your living space, a refreshed bathroom is a worthwhile investment.

Flooring & Tile Upgrades Your Home Resale Value

Investing in your home in places like the flooring and tile can significantly increase your home’s resale value and appeal to potential buyers. You can maximize your return on investment and sell your home faster by focusing on high-ROI projects such as kitchen refreshes, hardwood floor refinishing, and bathroom tile updates. 

Visit Preferred Flooring & Tile’s design center in Raleigh to explore our wide range of flooring options and get started on your home improvement journey today.

Why Choose Preferred Flooring & Tile?

At Preferred Flooring & Tile, we’re more than just a flooring and tile provider and installer—we’re your trusted partner in creating the home of your dreams. With our extensive selection of premium flooring products, exceptional customer service, and industry expertise, we’re committed to delivering unparalleled quality and satisfaction to every customer. Whether you’re embarking on a full-scale renovation or simply updating a single room, we’re here to support you from concept to completion.

Schedule your appointment at our design center today. Let our team of experts help you discover the perfect flooring, tile, or wall covering solution for your unique style and vision. Contact us now to get started!