The Phoenix real estate market is shifting increasingly in favor of buyers as higher interest rates and increasing supply bring down home prices. The favorable real estate market for buyers is causing many potential sellers to wait for home prices to rise before listing their homes for sale. Instead of selling now, homeowners are looking to remodel their homes to get better value in a more favorable market in the future. A home remodel is one of the most proactive ways to increase the value of your home, as many buyers will pay top dollar for an improved living experience. As an Arizona home remodeler, I have helped numerous homeowners enhance their living spaces and increase the value of their homes. Here are the home remodel upgrades that offer a great return on investment (ROI).
Open concept kitchens
A kitchen remodel remains the best space to upgrade if you want a good ROI. A major kitchen renovation typically offers an average ROI of 53 percent, according to research by Zillow. The modern open-concept kitchen has become the most popular home design. The kitchen has become the heart of the house. Guests no longer sit in the parlor while the host cooks. Everyone wants to hang out in the kitchen and be together. The open-concept kitchen is so popular because it allows everyone to be involved and connected.
The most popular features in an open-concept kitchen are a large island or peninsula—an area where people can gather, cook, work, and enjoy each other’s company. Adding a few attractive barstools for seating is also a bonus for any sizable island. New cabinets, countertops, and flooring are essential for a great return on investment. Remodels that perform best use attractive, easy-to-maintain materials. Vinyl wood flooring remains a popular and budget-friendly choice for floor upgrades. Quartz or Quartzite is a beautiful, nonporous countertop material that is easier to clean than marble and costs significantly less. Quartzite is the preferred choice since it’s a natural stone and very trendy right now. The kitchen continues to be the top room to remodel because it’s no longer just a workspace but a place for everyone to gather.
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Backyard upgrades
Thinking about your backyard during the dog days of summer might seem crazy, but the heat makes us forget that Phoenix has fantastic weather nine months out of the year. Because of the excellent weather, backyard upgrades are especially appealing to prospective homebuyers in Phoenix. Everyone here wants a beautiful outdoor space that includes a BBQ or outdoor kitchen, newly landscaped areas, and a pool. The BBQ or outdoor kitchen is important because Phoenix homeowners rarely need to cook inside when the weather is nice. The pool often feels essential during the hottest parts of summer, so people are willing to pay extra for these backyard upgrades. A well-maintained backyard can significantly boost a home’s value if a buyer can easily picture their family enjoying it for years. Many homeowners neglect improving their backyard, which costs them money when it’s time to sell.
Bathroom upgrades for older homes
Bathroom remodels are a worthwhile investment, regardless of the type of home you live in, but in my experience, older homes provide the best return on investment. Newer homes often come with many of the modern features that homebuyers want. Remodeling older homes can make a significant difference. Homes built in the 1970s and 1980s typically have lower countertops, lower toilets, and lack a modern walk-in shower. Adding a new walk-in shower with a backsplash, new vanities, and lighting will completely transform your bathroom and significantly increase your home’s value.
ADUs and new room attachments
Any remodel that adds a new room or living space will increase your home’s value. Increasing square footage makes your property more appealing to homebuyers because it provides more living space at a much lower cost than purchasing new land and building on it. As more people move to Phoenix and land prices rise, homes with ADUs will grow in popularity. Adding a master suite extension to your home will also significantly boost its value if you prefer not to invest in a casita.
The real estate market isn’t favorable for buyers right now, and if you’re waiting for a better market to sell your home, it’s wise to upgrade your space while you wait. Improving your kitchen, backyard, bathroom, and adding more living space will lead to a significant return on investment.
Author: Mike Smyth is the Owner of Smyth Design and Remodeling, a home remodeling company in Gilbert, Arizona. They are a family-owned company specializing in kitchen, bathroom, and general home remodels.
