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How to Generate the Most Return on a Home Remodeling Investment

Remodeling Investment

Every home remodeling project is motivated by one of two reasons. Either the project is intended to bring joy and comfort to the homeowner who plans on living there for the long term, or the project is intended to increase the value of the home. For those who plan on selling their home, remodeling projects are often seen as investments that can pay off big-time when the time comes to hand the keys over to the next inhabitant. However, not all home remodeling projects have the same amount of promise when it comes to making an investment worthwhile.

The options for remodeling your home are nearly limitless, and it can be difficult to figure out which kind of remodeling project is going to generate the most bang for your buck. You may think that any kind of remodeling project will increase the value of your home, whether it’s redoing the bathroom or completely renovating the kitchen. That may be true to an extent, but when it comes to generating a return on your investment, not all remodeling projects are created equal. Every different kind of remodeling project varies in terms of time and cost, and these factors greatly determine the extent of the return on your investment.

Every homeowner considering undertaking a home remodeling project should always determine what the motivating factor for their project is before making any major decisions. If the motivation has nothing to do with selling the house and is instead focused on comfort, then the entire process can be much more streamlined. After all, it is you, the person who plans on living in the home for many years to come who will ultimately determine the intrinsic and aesthetic value of any remodeling project. However, if selling or renting the home is your intention, then you obviously want to optimize the return on your investment as much as possible.

One may be inclined to believe that the bigger the investment on the remodeling project, the bigger the return on investment will be down the road. However, that simply isn’t always the case. Different types of home remodeling projects vary from year to year in terms of popularity, which in turn influences the value they add to the home once the house is put on the market. This can make it somewhat tricky to get an exact estimate of the return on your investment, which in turn makes it a challenge to decide what kind of remodeling project is going to add the most financial value to your home.

Surveys that analyze the return on investment of remodeling projects show that, on average, small-scale remodeling projects, such as a minor kitchen remodeling project, or a bathroom renovation, tend to have better results in terms of return on investment than large scale projects. One survey showed that minor kitchen remodeling projects had an average of 81% return on investment compared to a rate of 59% for major kitchen remodeling projects. This means that the outliers on the profit-end of the spectrum for minor kitchen remodeling projects saw returns on their investments well over 100% at a much higher rate than those who paid for major remodeling projects. This means that the chances of making a profit off of a remodeling project are higher for those who decide to do minor renovations to their home. However, all of this is relative, and for those who ended up on the profit-end of the spectrum for large scale renovations, the gamble paid off enormously. As is usually the case, the bigger the risk, the bigger the reward. However, the opposite scenario is also an inconvenient truth for those who fall victim to the ever-fluctuating housing market.


There is one way to increase your chances of making a profit off of a home remodeling project that is highly recommended. You can think of it as a way to protect your investment, and it works whether or not you are trying to increase the value of your home for a future sale, or simply to boost the value you get from increasing the comfort of your home. The tip is to hire an experienced contractor who is up-to-date with the latest trends in home remodeling, and who has the professionally trained eye to spot what repairs and renovations are needed most. Here at Divine Home Remodeling, we have a team of dedicated contractors who are trained, experienced, and eager to provide just that kind of service. We conduct thorough inspections, and we will be happy to identify any areas that are in need of improvement, provide a free estimate of any renovation project no matter how big or small, and then get the job done with unmatched quality and care. Get in touch with us today! We look forward to increasing the value and comfort of your home.

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