9 Interior Design Upgrades to Increase Your Home's ROI

Whether or not you're putting your home up for sale or want to enjoy a few easy upgrades, there are a few ways to boost your home's return on investment (ROI). Despite the endless possibilities for home design improvement, not every home renovation or upgrade offers an impressive ROI.

According to a Harvard's Joint Center for Housing Studies report, Americans spent nearly $420 billion in 2020 on home improvement. They are likely to spend more in subsequent years with the sudden realization of the financial benefits of home improvement.

From home selling tips to interior design tips, Hilton Head SC real estate agents provide practical and effective tips to help sell your home faster. Below are some top real estate interior design upgrades to increase your home's value and ROI.

Make your home appear larger

Have an open floor plan

The pros of upgrading your home to an open floor plan include:

Layout flexibility
Shared light
Improved traffic flow
Easy to keep track of kids at home
Spaces can be multifunctional

More importantly, an open floor plan increases your home's value. Prospective homebuyers with families need dedicated spaces to work and enjoy family time and entertainment.

Experts recommend consulting with interior designers or home improvement contractors to advise you on the structural integrity and visual appeal aspect. Prospective buyers with a taste for such spaces can willingly pay a premium for your home.

Have a home office

The 2019 COVID pandemic led to massive migration from physical offices in busy streets to remote offices at home. A home office is currently leading among the top priorities.

Dedicating existing space or creating new space to have a home office is becoming an excellent investment, especially if you are in a market with a relatively large population who telecommutes.

Adding a home office can increase your home's resale value by 10%. Fortunately, the ROI could go higher as Americans settle into remote-working routines.

Some creative options include converting a walk-in closet into a functional home office, setting up a small office desk by the hallway, building a backyard Accessory Dwelling Unit, or constructing an extension. However, a backyard ADU or extension may be costly, depending on your home upgrading budget.

Work on the basement

An unfinished basement is a potential for extra storage space. According to HomeAdvisor, finishing up your basement has a 75% potential ROI. Working on your basement gives your home the impression of a much bigger space.

Additionally, you can convert the basement to a home office, storage area, spare bedroom, or any functional space. The cost of finishing up your basement depends on the square footage and may involve installing drywall, flooring, and paint. Regardless, the bottom line is higher home value and ROI.

Attic bedroom conversion

Consider turning the space into a spare bedroom if your home has a convertible attic. One of the most practical ways to increase home value is by increasing the number of available rooms.

The average cost of attic conversion is $39,200. However, you can expect an up to 93.5% ROI. Alternatively, you can convert the existing attic space into a home office or dedicated storage unit.

Improve visual appeal

Add a fresh coat of paint

Exterior and interior painting projects have a significant ROI and can yield a $4,000+ value bump. This will likely be 107% ROI and 55% ROI for indoor and outdoor painting, respectively. A beautiful and modern exterior paint job gives homeowners major first impression points.

However, there are dos and don'ts when it comes to interior painting. While generally, it is a great concept, you ought to exercise caution to ensure you paint professionally-recommended colors. More importantly, ensure you use top-quality interior paint likely to last years before a fresh coat is needed.

Opt for a light neutral wall color, making a good palette for resales. A buyer is likely to picture their belongings in the space

Conduct thorough kitchen and bathroom renovations

The kitchen and bathroom are among the most important rooms in a home. Many prospective buyers typically start their home inspection from the kitchen or bathroom.

The greatest home improvement ROI comes from remodeling the kitchen, followed closely by the bathroom. Fortunately, there is no need to gut the entire room. However, giving each room an updated look can go a long way to changing the outlook and perspective.

Some of the bathroom upgrades you can try include:

Replace the shower head with a rain shower
Replace the vanity
Install new and more attractive lighting

Minor important kitchen upgrades include:

Replace the cabinets
Install new flooring

Though minimal, these changes and upgrades often attract emotional purchases and give you more bargaining power.

Replace your windows

A new window set can improve your home's aesthetic appeal significantly. However, a simple replacement isn't enough to guarantee a higher ROI. Ensure the window replacement is practical and matches the needs of the surrounding areas.

Install windows that allow plenty of natural light and are designed for energy efficiency. Proper, visually appealing, and practical windows save new homeowners a lot of money in energy bills, which you can use as a major selling point.

Make the home more functional

Make the home smart

Smart home features are a major, contemporary selling point in the real estate market. Generally, smart home upgrades boost security, efficiency, and convenience. More importantly, they favor a higher Return On Investment for your home.

As a homeowner, you can recoup 50%+ of your smart tech investment since the modern home buyer is willing to spend more money on a smart home. Some of the major smart home upgrades to increase your ROI include:

Smart appliances

These are among the best tech-centric investments you can make. Most smart appliances are energy efficient and add a significant convenience level. They detect patterns and are operable remotely. Some of the top smart appliances you can invest in include dryers, dishwashers, washers, and refrigerators.

Smart security features

Security features also make an impressive selling point. Homebuyers and owners are attracted to the value of security and peace of mind, which smart security features provide effortlessly. As a result, they can pay a premium for homes with such features. Smart security features include smart locks, doorbells, and security cameras.

Smart thermostat

The technology and capabilities associated with programmable thermostats are evolving while giving homes a better competitive advantage. Smart thermostats can adjust to your home's energy consumption. Additionally, they can be programmed and controlled remotely, translating to massive energy savings.

Smart lighting

LED lighting carries massive reliability and energy efficiency than traditional lightbulbs. They also have a longer lifespan. Like other smart home gadgets, smart lighting can be controlled remotely. More importantly, they help save on unnecessary energy consumption.

Smart hub

Creating a smart hub is an attractive upgrade, especially if you want to attract the younger, tech-savvy potential buyer population. Smart hubs are quickly becoming a staple in contemporary households since they tie your home's smart features together, allowing for remote control.

Not every smart upgrade is worth the time and effort. However, the above options offer your home an improved appeal, higher efficiency, convenience, practicality, and higher ROI.

Upgrade your HVAC

Vigilant buyers will ask when the existing air conditioner unit was installed. Some are interested in the possibility of a tankless water heater. An HVAC replacement costs about $7,000, depending on the unit system and size. This will include purchasing a new unit, installation, removal, and disposal. However, you can increase your home value and ROI by installing a newer model and more energy-efficient AC.

Bonus tip: Spice up your home decor

Beautiful and exotic home decor gives your home a welcoming, homely vibe. Fortunately, there are different ways available when it comes to spicing up your interior home decor. Prospective home buyers with a taste for luxurious decor should be your target market. Ultimately, they are willing to pay more money for such features in a home.

Some of the ways you can spice up your home décor include:

Make use of an aesthetic variety of mirrors
Introduce rugs in different exotic and quality options
Make nature an integrated element in your home, e.g., plants and flowers
Invest in classic furniture pieces for a vintage and expensive feel

Ready to sell your home?

Our team, led by Thomas Kersey, provides professional real estate services in South Carolina. As the leading Hilton Head, SC, real estate experts, we understand the local home buying and selling market and behavior.

We can recommend a real estate interior design Hilton Head expert to help you upgrade your home and increase its value. Additionally, we can provide you with some solid and healthy home selling tips after a thorough home upgrade.

More importantly, as experienced Hilton Head realtors, we can help you sell or buy a home or property. Contact us for more real estate and interior design tips and insights for the perfect home sale or purchase.