The Best Home Improvements To Increase The Value of Your House

According to TLC star Carter Oosterhouse, the number one rule of home improvement is to budget appropriately.

A good rule of thumb for determining your home renovation budget, the pro says, is figuring out if you're going to get a return on your investment. 

You should be strategic when renovating — go after the room (or rooms) that will make the best investment.

As Rach guessed first, the kitchen is a solid choice, but it isn't the only one. While it may not immediately come to mind, Carter says a finished attic or basement actually has the same amount of value as the kitchen — so you should budget the same amount for a renovation.

"Lots of times, when they come in and appraise your home, they don't [include] your basement or your attic [in] your overall square footage. Those are bonus, added rooms," Carter says. This is helpful information to keep in mind if and when you're trying to sell your home.

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If you have a $200,000 home, the kitchen makes up 10-15% of the home's value, so you should budget $20,000-$30,000 for a kitchen renovation. A finished attic or basement has the same value and budget. 

Carter shared a handy graphic that illustrates which rooms in a home have the highest and lowest values, so you can decide what to prioritize. The breakdown can also help you determine how much money to put toward a renovation, so you can ensure the highest return on your investment (ROI).

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These are the areas you should focus on in order of importance, starting with the rooms that have the highest ROI.

1. KITCHEN

% of Home's Value: 10-15%
Budget: $20,000 - $30,000

2. FINISHED ATTIC OR BASEMENT

% of Home's Value: 10-15%
Budget: $20,000 - $30,000

3. MASTER SUITE

% of Home's Value: 10%
Budget: $20,000

4. POWDER ROOM/BATH

% of Home's Value: 5%
Budget: $10,000

5. PATIO, DECK & LANDSCAPING

% of Home's Value: 2-5%
Budget: $4,000 - $10,000

6. LIVING ROOM, DINING ROOM OR BEDROOM

% of Home's Value: 1-3%
Budget: $2,000 - $6,000

"It's a pretty good scale to live by to know how much you should be spending so you're not breaking your bank," Carter says.