Maximizing the Value of Your Fixer-Upper: Key Kitchen and Bathroom Renovations

Are you considering buying a fixer-upper but feeling hesitant about the potential risks and complications of large-scale renovations? A recent study by Frontdoor may provide some insight into whether taking on a fixer-upper project is worth it.

According to Frontdoor’s findings, offers for fixer-uppers have halved from 2022 to 2023, indicating a growing reluctance among buyers to tackle renovation projects. However, the study also revealed that those who do take the leap and renovate a fixer-upper can earn a 27.5% return on their investment, on average. This return, coupled with the personal satisfaction of designing a home to your taste, can make the endeavor worthwhile.

To help prospective fixer-upper buyers make informed decisions, Frontdoor’s data team analyzed information from Zillow and Kukun’s home remodeling cost estimator to determine the most profitable home renovations. Unsurprisingly, the kitchen and bathroom emerged as key areas for increasing a home’s value.

In the kitchen, Frontdoor found that renovating cabinets can yield the highest return, with an average increase in property value of 3.63%, or around $7,510. Upgrading appliances, counters, faucets and sinks, and lighting also proved to be profitable renovations, adding value to the home.

In the bathroom, renovations such as shower and tub surround panels, faucet, sink, and toilet upgrades, and cabinet replacements were identified as valuable improvements. These renovations can not only increase the property’s value but also enhance the overall appeal and comfort of the space.

While the prospect of renovating a fixer-upper may seem daunting, the potential rewards in terms of financial return and personal satisfaction are significant. By carefully planning and strategizing renovations, homeowners can maximize the value of their investment and create a home that reflects their unique style and preferences.