The average increase in the value of a house after a renovation can vary significantly depending on various factors, including the type and scale of renovation, the local real estate market conditions, the quality of the work done, and the overall condition of the property before the renovation. It's essential to remember that there is no one-size-fits-all answer to this question, as each renovation project is unique.
That said, several studies and real estate experts have suggested that, on average, a well-planned and executed renovation can lead to an increase in a property's value ranging from 10% to 20%. However, some renovations may yield even higher returns, especially if they address specific market demands or increase the property's appeal significantly.
Renovations that are known to provide a higher return on investment (ROI) include kitchen upgrades, bathroom remodels, adding extra rooms or living space, enhancing curb appeal, and improving energy efficiency. On the other hand, certain renovations might not provide as much return, especially if they are overly customized or too specific to the current owner's preferences.
If you're considering a renovation project with the goal of increasing your home's value, it's crucial to research and analyze the local real estate market, consult with real estate professionals, and make informed decisions based on your budget and the potential impact of the renovation on your property's overall value. Additionally, focus on renovations that align with the preferences and needs of potential buyers in your area, as this can play a significant role in determining the post-renovation value of your home.