Posted on 04/24/2016

Remodeling Your Home? See Which Rooms Carry the Most Value

4 minute read

When entertaining the idea of a remodel, most homeowners want to know what the return on their investment will be when the time comes to sell. Though you might enjoy an upscale master suite, a pool or home office – will it increase your home value? Not all rooms or areas of your home are created equal. Here are your best bets to focus on if your goal is to create a great living space with the best resale value.


The 2016 “Cost vs. Value” report found that the average minor kitchen remodel weathered an 83.1% return of investment. Kitchens tend to be considered the heart of the home, and therefore carry a huge amount of your home’s value. Families and friends gravitate toward the kitchen during gatherings, so mostly any investment put toward this room will be money well spent.

The following kitchen updates go a long way in terms of value:

  • Replace dated vinyl flooring with laminate, tile or hardwood
  • Do away with vinyl countertops and opt for granite or quartz
  • Replace mismatched appliances for a coordinating, energy efficient set – preferably black or stainless steel
  • Update or paint cabinet faces and replace hardware


Bathrooms come in second place in terms of rooms with the highest home value. Not only do homebuyers desire homes with an equal number of bedrooms and bathrooms, but they’re also looking for well-utilized space and quality materials.

The 2016 Cost vs. Value Report found that the average, mid-range bathroom remodel recouped 65.7% of investment dollars.

A bathroom remodel can also be done on a budget. Small things, such as replacing the toilet seat, faucet fixtures, showerhead and lighting, go a long way. Replace grimy tubs and showers by re-grouting and replace broken tiles.

If you’re looking to do a more in-depth remodel, consider replacing vinyl flooring with tile. White field tiles are also a great, affordable option for tiled showers. A pre-fabricated tub and shower surround can be purchased for units needing a greater cover-up though installation may require a professional’s help.


A finished basement is a great option in adding resale value to your home – the average midrange basement remodel recouped 70.4 percent of the cost. Not only does a finished basement provide extra space for storage but usable square footage to your home.

The benefit of a finished basement is that you – and any potential buyers in the future – can transform the extra space into whatever kind of room that fits your needs, be it a man cave, additional living room, toy room, storage, or home office.

See our top ideas for finishing your basement on a budget.

Curb Appeal

Though not an actual room in your home, the outer ambiance of your home does a lot for home value. According to the National Association of Realtors, 63 percent of homebuyers will drive by a listing before going to view it with their real estate agent.

When trying to improve home value, it may be best to start from the outside. Update the entrance of your home by painting or completely replacing your front door (a 91% recoup in value). Replace your house numbers, light fixtures and hardware – brushed nickel complements contemporary style homes and antique bronze suits traditional. Create symmetry to your entryway by flanking your front door with flowerpots, sconces or any seasonal décor.

With a 91.5% cost recoup, garage door replacements were the third highest on the Cost vs. Value Report. Not in the market for a new garage door?

Take into account flaws that you may miss on a daily basis, such as cracks in your driveway pavement, dull or chipped exterior paint, or a sagging fence.

Keep in mind that not all home improvements that add value are apparent to the eye – 2016’s best home improvement for cost recouped was adding fiberglass attic insulation! Too see the best remodeling projects for 2016, click here.

These are just a few of the items that will help you increase value in the most important rooms and areas of your home. For more inspiration on home remodeling projects, check out our Pinterest page or download our free Rehab & Construction Guide.

Home to a Better Mortgage Experience® and Get Committed® are registered trademarks of Compass Mortgage Inc. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Compass Mortgage Inc. and with appropriate and specific direction to the original content. NMLS# 21808 – Illinois: MB.0005795, Arizona: 0909436 (dba Compass Mortgage Lending, Inc.), California: 4131332 (dba Compass Mortgage Lending, Inc.), Colorado: 21808 (dba Compass Mortgage Lending, Inc.), Florida: MLD308 (dba Compass Mortgage Lending, Inc.), Georgia: 38332, Indiana: 11020, Iowa: MBK-2001-0104, Michigan: FR022873, Tennessee: 135374, Texas: 21808, Wisconsin: 38296BA/21808BR, Oregon: 21808, Minnesota: MN-MO-21808, Missouri: 21808, Ohio: RM.804327.000, South Carolina: MLS-21808, North Carolina: 20080, Kentucky: MC763652, NMLS Consumer Access Illinois Residential Mortgage Licensee Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act. For licensing information, go to: