When homeowners contemplate renovations, they often focus primarily on the immediate aesthetic benefits. However, custom-designed interiors offer much more than just visual appeal—they can significantly boost your home’s market value and provide a substantial return on investment (ROI). Let’s delve deeper into how these personalized and custom home spaces can offer hidden value that extends far beyond mere appearances.
Kitchen Remodels: The Heart of Custom Home Space Value
The kitchen, often referred to as the heart of the home, remains one of the most influential areas for home valuation. According to Remodeling Magazine’s 2021 Cost vs. Value Report, a minor kitchen remodel has an average ROI of 72.2%. This means that for every $100 spent on the renovation, you could potentially recoup $72.20 in added home value.
But what constitutes a “minor” kitchen remodel? Typically, it includes updating cabinet fronts, installing new hardware, upgrading to energy-efficient appliances, replacing countertops, and refreshing flooring and paint. These changes can dramatically transform the space without the need for extensive structural modifications.
It’s worth noting that the ROI can vary depending on your local market and the quality of the renovation. In some hot real estate markets, a well-executed kitchen remodel could yield an even higher return. Additionally, a thoughtfully designed kitchen can be a major selling point, potentially leading to a faster sale when you decide to put your home on the market.
Custom Closet Systems: Organization Sells
Well-designed storage spaces are increasingly becoming a selling point in today’s real estate market. The National Association of Realtors (NAR) reported in their 2019 Remodeling Impact Report that 53% of realtors have suggested sellers add a new closet or improve an existing one before attempting to sell, and 95% of those who did so reported the project helped cinch a sale.
Custom closets offer more than just additional storage space. They provide organization solutions that can make daily life more efficient and enjoyable. Features like built-in drawers, adjustable shelving, and specialized compartments for accessories can transform a cluttered closet into a functional, attractive space.
Moreover, walk-in closets, especially in master bedrooms, have become highly desirable features for many homebuyers. A well-designed walk-in closet can create a sense of luxury and spaciousness that can set your home apart in a competitive market.
Home Office Additions: A Post-Pandemic Necessity
With the rise of remote work, home offices have become more valuable than ever. A 2021 survey by Homes.com found that 45% of homeowners planned to add or improve a home office space due to pandemic-related lifestyle changes.
A dedicated home office space can be a significant selling point, especially as more companies adopt flexible work policies. When designing a home office, consider factors like natural lighting, soundproofing, and built-in storage. These elements can enhance productivity and comfort, making the space more appealing to potential buyers who work from home.
Additionally, versatile spaces that can function as both a home office and a guest room or hobby area can be particularly attractive. This flexibility allows homeowners to maximize the utility of their space, which is especially valuable in urban areas where square footage comes at a premium.
Bathroom Upgrades: Small Spaces, Big Impact
Bathrooms offer another opportunity for significant ROI. The same Cost vs. Value Report indicates that a midrange bathroom remodel has an average ROI of 60.1%. This shows that even smaller spaces can have a substantial impact on home value.
Bathroom upgrades can range from simple cosmetic changes to full-scale renovations. Even minor updates like replacing outdated fixtures, upgrading lighting, or installing a new vanity can refresh the space and increase appeal. For more extensive remodels, consider adding luxury features like heated floors, a rainfall showerhead, or a soaking tub.
It’s important to note that while master bathrooms often get the most attention, don’t overlook your other bathrooms. A well-designed powder room or guest bathroom can also contribute significantly to your home’s overall appeal and value.
Energy-Efficient Custom Home Designs: Long-Term Savings
Custom spaces that incorporate energy-efficient designs not only reduce utility costs but also appeal to eco-conscious buyers. The National Association of Home Builders reports that 81% of homebuyers consider energy-efficient features very important or somewhat important in their home buying decision.
Energy-efficient upgrades can include installing LED lighting, energy-star rated appliances, improved insulation, and smart home systems for climate control. These features not only reduce monthly utility costs but also demonstrate a commitment to sustainability, which is increasingly important to many homebuyers.
Moreover, some energy-efficient upgrades may qualify for tax credits or rebates, further enhancing their ROI. Be sure to research local and federal incentives when planning your renovations.
Open Floor Plans: The Value of Versatility
Open floor plans continue to be popular among homebuyers. A study by Knock.com found that homes with open floor plans sold for 7.4% above their expected value.
An open floor plan can make a home feel larger and more modern. It allows for better flow between living spaces and can make entertaining easier. When creating an open floor plan, consider how to define different areas through furniture placement, lighting, and subtle design elements to maintain a sense of purpose for each space.
However, it’s important to note that the trend towards completely open spaces may be shifting slightly. Post-pandemic, some homeowners are seeking a balance between openness and the ability to create private spaces when needed. Consider incorporating flexible elements like sliding doors or movable partitions that allow for adaptability.
Upgrading Your Home with Custom Spaces
While the exact ROI can vary depending on your location, the quality of work, and current market conditions, it’s clear that custom-designed spaces offer more than just aesthetic value. They can significantly increase your home’s marketability and worth. When planning your next home improvement project, consider how custom designs can not only enhance your living experience but also provide a solid return on your investment.
Remember, the key to maximizing ROI is to focus on improvements that align with current market trends and buyer preferences in your area. Consult with local real estate professionals and experienced designers to make informed decisions about your custom space investments. By doing so, you can create a home that not only meets your needs but also stands out in the real estate market when it’s time to sell.
Choose Neatly Dunn Closets and Custom Spaces: Greenville’s Professional Custom Space Design Studio
Neatly Dunn: Closets and Custom Spaces is Greenville’s premiere LOCAL business. Lou Anne Dunn has over 20 years of experience in design, interior design and decorating, space allocation, and production of custom spaces. She has been recognized for her creative and practical use of space and luxury designs. When determining what space to add, and how it should be designed, Neatly Dunn is the company to choose!
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