Mortgage 101: Which Rooms in Your Home are Best for Home Value?

Posted by Laine Smith on 3/19/15 8:30 AM

Topics: Home Ownership

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 resale value.



The 2015 “Cost vs. Value” report found that minor kitchen remodel weathered an average 81.8% 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 set – preferably black or stainless steel

A kitchen remodel doesn’t need to break the bank. If you can’t afford to replace your dated kitchen cabinets, painting them and replacing old fixtures with new brushed nickel pulls can go a long way.



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

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. Not only does it 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, etc.

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. 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 flower pots, sconces or any seasonal décor.

Consider replacing your garage door, siding and windows for the ultimate ROI. The average investment return for these home improvements is approximately 72%, according to Remodeling Magazine.

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.

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.

Download: Rehab & Construction Guide

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