When considering a home improvement project, return on investment (ROI) is a crucial factor. Whether you’re thinking about a barndominium, garage conversion, home add-on, or room remodel, each option affects your home’s value differently. Understanding which projects provide the best resale value can help you make a smart investment while improving your living space. Let’s break down the potential impact of each project on your home’s worth.
1. Barndominium – Unique Appeal, Uncertain ROI
Barndominiums are rising in popularity, particularly in rural areas where larger properties and open spaces are valued. These modern barn-style homes offer energy efficiency, durability, and customization, but their impact on resale value can be unpredictable.
✅ Pros for Home Value:
- Can be highly desirable in certain markets
- Lower maintenance and energy-efficient features attract buyers
- Provides ample living and storage space
❌ Cons for Home Value:
- May not appeal to traditional home buyers
- Financing and appraisals can be more difficult
- Market demand varies by location
Verdict: A barndominium is a great long-term investment if you plan to stay for years, but resale value depends on market trends and buyer interest in your area.
2. Garage Conversion – Cost-Effective, But With Trade-offs
Converting a garage into a living space, office, or guest suite can be an affordable way to expand your home. However, garage conversions don’t always add as much value as expected, particularly if buyers prefer a functioning garage.
✅ Pros for Home Value:
- Adds usable living space without major construction costs
- Can increase home value by 10-15% if done well
- Ideal in areas where parking isn’t a priority
❌ Cons for Home Value:
- Eliminating garage space can reduce buyer interest, especially in areas with limited parking
- Must be professionally finished to match the home’s style
- Requires HVAC, plumbing, and insulation upgrades for best ROI
Verdict: A garage conversion can add value, but only if done properly and in a market where parking isn’t a dealbreaker.
3. Home Add-On – Big Investment, Big Return
A home addition—such as adding a new bedroom, bathroom, or second story—has one of the highest impacts on home value. It permanently increases your square footage, which directly influences appraisal value.
✅ Pros for Home Value:
- Increases home size, leading to higher resale value
- Adds functionality and livability for future buyers
- Can yield 50-80% ROI, depending on the project
❌ Cons for Home Value:
- High upfront costs for construction and permits
- Long project timelines
- If not well-integrated into the home’s design, it can feel like an afterthought
Verdict: A home add-on is one of the best ways to boost your home’s value, but costs can be high. Make sure to choose projects that add livable space buyers want, such as an extra bedroom or bathroom.
4. Room Remodel – Small Change, Big Impact
Updating an existing kitchen, bathroom, or basement is one of the most effective ways to increase home value without adding square footage. Buyers love modernized, move-in-ready homes, making remodeling a safe investment.
✅ Pros for Home Value:
- High ROI—bathroom and kitchen remodels can recoup 60-80% of costs
- Less expensive than an addition
- Makes the home more attractive to buyers
❌ Cons for Home Value:
- Doesn’t increase square footage
- Over-customization can turn away buyers
- ROI varies depending on the market and project quality
Verdict: A room remodel offers one of the best returns on investment, particularly in the kitchen and bathroom, where modern updates are highly desirable.
Which Option is Best for Your Home’s Value?
- If you want the highest ROI: Choose a kitchen or bathroom remodel
- If you want long-term livability and resale potential: A home add-on is the best option
- If you need extra space without a huge investment: A garage conversion can work, but only if you don’t need the garage for parking
- If you’re looking for a unique lifestyle change: A barndominium is an exciting option, that can increase your home value
At Reed’s Remodeling, we specialize in high-quality home renovations that maximize value. Whether you’re remodeling a room, converting a garage, or planning an addition, our experts can help you make the best investment for your home and future resale potential.
📞 Contact us today to discuss your project and get a free consultation!
