Home Remodel Return on Investment Guide

We love a good remodel. Not only does it spruce up your home and update the interior to your liking, it can also add tremendous value. In general, modest bathroom and kitchen remodels see an 80% return on investment. Follow these four tips to protect your remodel return on investment (ROI).


Tip #1: Keep it modest – Follow the 20% rule

Start your remodel planning process by getting a realistic understanding of your home’s value. You can figure this out by comparing sale prices of similar houses in your neighborhood, getting an appraisal, or using a site like Zillow. Once you know your home’s value, apply the 20% rule – spend no more than 20% of your home’s value on a bathroom or kitchen remodel. If you spend over 20%, you’re likely overdoing it and will see a diminished return on your financial investment.

Tip #2: Upgrade with future buyers in mind

When remodeling with a goal of ROI, a project budget should reflect a future buyer’s priorities and not just your own. For example, you might think that your cabinets are good quality and in good condition, but if they are made with a dated wood species, finish, or door style, no matter how many thousands of dollars you put into new countertops and backsplash, you’ll still end up with dated cabinets that aren’t relevant to most buyers. In fact, in some cases, it may make sense to spend less on the countertops and backsplash and prioritize an affordable cabinet replacement.

Tip #3: Design complete – The wow factor

What does design complete mean? Basically, you want visitors to enter your home after a remodel and say, “Wow! Did you just remodel?” If you are missing the “Wow factor,” home buyers will not assign value to what you consider a charming remodel. The key to achieving the “Wow factor” is having the discipline to focus on only the kitchen or the bathroom and allocate a realistic budget. A design complete remodel should fully transform the space. When you try to do too many things, it often comes out looking like the space was updated but not remodeled.

Tip #4: Is it sellable?

Ask yourself the question, “Is this remodel “sellable?” Would a potential buyer happily pay 80% of the remodel cost on top of the normal home price? The goal of the remodel is to create undeniable design improvements with mass appeal, now and in the future. Making remodel choices that are “sellable” can be difficult. Let your designer be your guide to the best, personalized remodel path. At Eheart, our designers provide several remodel paths for your style that all map to financial success.

Redecorate for Resale: Master Bath

So you’re thinking about selling so you can finally relocate to the your dream home?  Take a look around your master bath.  Will it be a feature or a flaw once you put your realtor’s sign out front?  When you’ve lived in your home for a couple of years, you get used to things that might just keep it from selling.  You don’t have to spend a whole lot, but why not bring it up to speed so your home sells for what it’s really worth?  Master bath’s tend to return 120% on your investment!

Essentials of Master Baths:

  • Transitional styling for universal likeability
  • Kitchen height, double sink vanity
  • Updated plumbing fixtures (go for Brushed Nickel or Oil Rubbed Bronze)
  • Hard surface floor (get rid of bathroom carpet!)
  • Updated lighting

Great Upgrades that Sell:

  • Radiant Heat in flooring
  • Solid surface countertops (let us find you a remnant of granite, quartz, or Corian)
  • Glass tile and natural stone
  • Framed Mirrors (forgo the wall covering monstrosity your builder included years ago)
  • Plumbing in a universally loved color, like white or almond

A couple of options under $5,000 for your typical master bath:

Capture that Colorado feel with slate from our warehouse (just $2/square foot!  That’s unheard of!), a granite remnant, and oil rubbed bronze plumbing, lighting, and mirrors.

 Keep it clean and neutral with honed and filled travertine (just $2.59/square foot from our warehouse!), shiny white ceramic tile (59 cents/square foot), a granite remnant, and brushed nickle fixtures.

Fresh Picks: Inviting Ivory

“Inviting Ivory” by Sherwin Williams (#6372)

This neutral has just the right undertones for selling your home in no time.  It will evoke that “warm” feeling buyers are scouting for, without committing them to stick with your color scheme.